Real Estate Investor June 2022 | Page 74

URBAN PLANNING
“ If we are to combat urban sprawl , we need to promote socially desirable levels of population density . Sprawl can just as easily translate to fragmentation . By becoming more sustainable and unified in their approach to creating development opportunities , stakeholders in the sector can positively disrupt communities and combat urban sprawl in a more concerted manner .”
“ This is reinforced by the semigration trend that has emerged in South Africa since the onset of the pandemic . This sees people embracing work-from-anywhere setups and leaving major urban centres in favour of smaller , quieter towns . However , this adds to the need to provide affordable rental housing to people who are faced with new challenges in rapidly expanding urban areas .”
Research has found that urban sprawl is driven by demographic , economic , geographic , social , and technological factors . More importantly , the findings have shown that urban sprawl is also policy driven . Maximum density restrictions , specific zoning regulations , tax systems that are misaligned with the social cost of low-density development , the under-pricing of car use externalities , and the massive investment in road infrastructure all contribute to this phenomenon .
HOUSING DONE DIFFERENTLY
In South Africa , there is also the issue of RDP housing to consider . Although these form an important aspect of accessibility to safe living conditions , these developments often have a net negative fiscal impact .
“ They require additional services and ancillary infrastructure development in areas that have none , and people living in these developments often struggle to pay for services such as utilities , rates , and taxes . In contrast , a certain level of urban densification is necessary for economic and social action . It contributes to economic development at a micro level , which is by its nature inclusive .”
74 JUNE 2022 SA Real Estate Investor Magazine