Next phase of Cape housing development to be launched

The next phase of Stellendale Village, in the Western Cape, which caters for those struggling to secure property because their income is either too low to apply for a mortgage or too high to qualify for Reconstruction and Development Programme (RDP) housing, will be launched soon.

The complex, situated between Stellenbosch and Tyger Valley, is a multiphase housing development in the northern suburbs of Cape Town.

The first phase, comprising 307 units, was completed in 2009 and a further phase was completed in 2011, which saw 33 individual-title two-bedroom and three-bedroom units, called Zevenbosch Boulevard, being built. The most recent phase, comprising 40 units, was completed at the end of February.

A further 600 units will soon be built, of which 127 are aimed at lower-income families wanting to get a foot onto the property ladder. The property development initiative is a joint venture (JV) agreement between private- equity firm International Housing Solutions, investment firm International Housing Solutions subsidiary South African Workforce Housing Fund and property development company Visual International.

Of the 1 500-unit development, 10% of the properties will be sold at discounts of more than R90 000 below the other units. These gap houses, as they are commonly referred to, are to attract first-time buyers who generally fall short on the income criteria for units at market prices or unsubsidised units, yet whose income is too high for government-subsidised RDP housing. To qualify, the monthly household income of a typical gap buyer would be between R3 500 and R14 000.
“In this segment of the market, demand for affordable housing outstrips supply,” says Visual International project director Peter Grobbelaar.

He adds that these gap units are similar to, and interspersed between, the other homes and apartments, thus promoting an integrated society and providing real social upliftment.
Included in the balance of the units to be built are the 127 gap homes and apartments costing between R299 000 and R399 000, as well as 600 units which will be marketed to middle-income earners, in the price range of R489 500 to R629 000.

Further, Visual International also entered into a development agreement with the Western Cape provincial Department of Local Government and Housing, in which the department made a portion of State land, immediately adjacent to Stellendale Village, available for incorporation into Stellendale.
In his State of the Nation address in early February, President Jacob Zuma spoke to the low-to-middle-income potential property buyers and announced that, from April, people earning between R3 500 and R15 000 a month will be able to obtain a subsidy of up to R83 000 from provinces to enable them to obtain housing finance from an accredited bank.
“Of the broader South African real estate market, housing is the only sector of the market where demand outstrips supply, particularly for homes priced under R600 000. In addition to providing high-quality living options to people who would otherwise struggle to find decent accommodation, this sector is also a huge job-creation vehicle, providing much-needed employment opportunities in the communities where affordable housing development takes place,” Grobbelaar adds.
Stellendale Park, a telecommunications business precinct, will also be built adjacent to the village in the next few years, providing thousands of job opportunities in the area.

The JV believes the business park will boost the business process outsource and data centre industries in the Western Cape, as well as attract creative industries, bio- tech business and technology-intensive business.

The project is due to start this year, with the first phase comprising a data centre with around 910 m2 of rackable floor space and an office component fully fitted and provisioned for around 280 contact centre seats.
Meanwhile, to ensure that Stellendale Village contributes positively to the environment, caution has also been taken to ensure that the carbon footprint of the project is reduced through carefully considered energy and water consumption, insulation, land- scaping and transport to the village. This includes the use of energy efficient street- lights, channelling of rainwater and thermal ceiling insulation.
“Stellendale Village is also a solid long-term investment opportunity with good rental yields, owing to its central location on the Stellenbosch arterial, plus views of Table Mountain and the Helderberg Mountains. With high-quality finishes, a well-developed security system and a fully walled perimeter with electric fencing, plus wide open roads, generous landscaping, green corridors, safe playing parks and common areas between homes and apartment buildings, Stellendale Village is one of a kind,” Grobbelaar states.

The property development was awarded the South African Housing Foundation Award in 2007 in recognition of its assembling a top-class development team, who have collectively conceptualised and implemented the development of an innovative, high-quality, yet affordable, secure village development.