SPECIAL FOCUS
Despite the delivery of more than three million units over the last two decades, South Africa continues to face a severe housing backlog. Platforms like the Banking
Summit create dialogue between all stakeholders in the value chain as they plan solutions.
Rust notes that there’s a need for smaller
urban infill developments, as well as mega
projects, both in terms of new builds and more
effective gearing of existing properties and
use of existing infrastructure. Sustainability
also needs to be considered across every
aspect, from pre-delivery environmental
considerations through to the delivery process
and materials used, and the sustainability of
the human settlement afterwards and into
the future.
The second broad theme she identifies is
method. “Do we do this through partnerships?
What is the method around the finance blend,
who the players are and the balance between
regulation and the enabling environment?”
asks Rust.
She raises the point that private sector
players seem to be concerned with trust and
certainty. “The uncertainty of the development
process is one of the biggest cost issues.
The private sector needs to be able to trust
government to meet its commitments, and
the public sector needs to be able to trust
the private sector to act in the interests of
the development priorities,” she says.
“But when the process is delayed, trust
and understanding break down.”
The third issue that Rust raises is around
the lack of data available, which undermines
decision making, both in terms of policy as
well as investments. “We don’t know how
many houses are being built, the extent of
lending or the nature of loan performance,”
she says. “In order for trust and certainty to be
built, this data is crucial.”
In this regard, CAHF, in partnership
THE SHAPE OF THE FUTURE CITY WILL
CONSIST OF WELL-PLANNED TRANSPORT
ARTERIES – THE CORRIDORS OF FREEDOM –
LINKED TO INTERCHANGES WHERE THE FOCUS
WILL BE ON MIXED-USE DEVELOPMENT:
HIGH-DENSITY ACCOMMODATION, SUPPORTED BY
OFFICE BUILDINGS, RETAIL DEVELOPMENT AND
OPPORTUNITIES FOR LEISURE AND RECREATION.
– PARKS TAU
with FinMark Trust, has developed the
CityMark dashboard to provide local housing
market data through a web-based platform.
It highlights the Housing Performance
Index, which uses important key housing
performance indicators at the main place level
to better understand market strengths and
performance within all nine major metros in
South Africa.
Rust notes that new dashboards are being
added continuously as CAHF attempts to
deliver more housing data, ranging from
affordability to leverage and lending activity.
Still, access to data is a constant struggle, and
both the public and the private sector could do
more in terms of data transparency.
The final issue Rust feels was pertinent at
the summit is dialogue. She says The Banking
Association pushed quite hard for dialogue,
and these efforts were supported by the Human
Settlements Minister in her pursuit of a social
contract, and the Finance Minister in agreeing
to create a technical working group. This
ongoing dialogue will be critical in developing
trust and certainty between the public and
private sectors, although Rust notes that each is
responding to fundamentally different drivers.
In terms of partnership, Rust says the
Corridors of Freedom are a good example of
the public sector creating an opportunity for
other stakeholders to respond to a plan. “It’s
very innovative because it stimulates demand
and gears private sector resources,” she says.
“This dialogue is really important,” she
concludes. “There are excellent opportunities to
be found in these conversations between public
and private sector. The Banking Summit was a
great start.”
Edition 12 | BANKERSA
Banking Summit.indd 27
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2014/12/18 10:03 AM