Real Estate Investor Magazine South Africa Dec/January 2020 | Page 37

Sustainable housing
The cost of living in South Africa is getting higher every year.
Natural disasters like droughts and water scarcity are only
making it worse. The recent electricity price increase and fuel
hikes are adding to the slow-growing economic stability in the
Southern African region.
This affects almost every sector in SA and has an unpleasant
impact on the real estate and property sector — especially the
residential property investment industry.
The rental market (as one of the biggest markets in the
residential property investment sector) has been growing at a
slow pace since early 2017. From 7.4% in Q1 of 2017, to 3.2% in
the third quarter of 2018. In addition, monthly rental growth
figures in the first nine months of the year 2019 were rather flat,
following on from a similar performance in 2018. This is due to
many factors.
According to PayProp, the adjusted inflation ‘real rental rate’
has also declined by an average of 0.5% in the first half of 2019.
September brought the year’s first positive news in this regard,
experiencing the highest YoY growth rate of the year (4.2%),
and the first time the monthly growth rate exceeded inflation
since April 2018.
The national rental growth rate for the last quarter of 2018
has slowed to 4.14% in comparison to a 5.39% growth rate
during the same period in 2017. This year, the rental market has
been uneventful, with consistent low levels of rental growth
that stayed below inflation. According to PayProp, September
brought the highest rental growth rate of the year thus far:
The exorbitant prices of rental residential spaces in South
Africa is the overarching cause of the slow national rental growth
in residential property sector and considering the various
expenses that come with owning property as an investor, high
rental rates are inevitable. The water and electricity bills are
the primary factor leading to the high rental prices across the
country.
The high rental prices threaten the daily lives of many
people in South Africa — either directly or indirectly. The ever-
increasing electricity costs and load-shedding should urge
investors to start investing in sustainable housing to avoid
black outs and high electricity tariffs. This is why tenants and
homeowners should turn towards ‘going green’ and using their
own energy sources to avoid the expensive rates.
Solar power systems
Debates regarding sustainable solutions to the recurring
load shedding, coupled with high electricity tariffs are
happening around the country. The most common outcome
of these discussions is the use of self-efficient domestic energy
resources as well as natural light. Of the many examples on
how to cut down on electricity consumption, the sun has
proven to be the most efficient alternative energy source. It can
be used to substitute electricity in various ways:
Solar domestic hot water
The solar domestic hot water system is an example of one
of the uses of the sun as a self-efficient energy source.
The domestic hot water system uses a cost-effective way
to generate hot water, cutting down on the amount of
electricity used to power geysers. The system works in any
climate, operates well and solely uses the sun. Anyone can
have it in their home.
Air-conditioning system
The use of solar-powered air-conditioning has proven to
save money and exempt homeowners from paying high
electricity prices. It’s become a popular solution in Australia.
Hotel rooms, establishments and most commercial
buildings have air-conditioning (with heaters) and geysers
that are electronically powered. Scientifically, the emissions
that come with these systems can be inversely beneficial to
one’s home.
Inspiration can be drawn from the CSIRO invested air-
conditioning system — an innovative three-in-one technology
system that provides hot water, cooling as well as heating, all
installed in one device. The system uses a fraction of the electricity
and halves greenhouse gases emission. The system alternates its
uses from providing heat when needed, cooling when the home
is heated and hot water when required. Installation for developers
might be costly but the benefits are plenty.
Off-grid homes
In order to reduce the carbon footprint and ensure the success
of an eco-friendly environment, mobile homes are the latest
trend to follow. While mobile homes (such as caravans) have
been around for ages, Real estate and property investors
should start looking towards sustainable housing as the idea
gains traction around the country.
Apart from investing for the sake of sustainable wealth, it
is important that investors realise that building a stable and
sustainable nation contributes to preserving the environment
and keeping it as clean as possible. In South Africa, PanGoPod
and Umnyama Ikhaya have been informed about the trend.
Umnyama Ikhaya
Explaining the trend and how it fits into sustainable housing
and eco-friendly living, Umnyama Ikhaya CEO John Venter
said “This housing concept is the answer not just for South
Africa but stands to benefit the entire continent of Africa
due to the lack of infrastructure. It is time and water saving,
it’s green and has 100% off-grid capability. This housing
concept is fully transportable anywhere in Africa and the
world via ship, rail, road and even air as the building blocks
is 6,08m L x 2,44m W2,9m H or 12,19m L x 2,44m W x 2,9m H
high-cube shipping containers.
PanGoPod (an off-grid tiny home)
Meanwhile, running off solar power, using water from
rainwater harvesting tanks, and a water-free composing
loo, PanGoPod is another technique to sustainable housing.
This is a full house with all necessary home appliances —
apart from energy generation. The homes provide privacy
for a shower, a composting toilet, a hand basin, a wardrobe,
a washing machine and can offer a reduced environmental
footprint. Free movement in a safe, secure, weatherproof
shelter, as well as a healthy, beautiful, and nurturing space.
SOURCE PanGoPod, PayProp, Umnyama Ikhaya
SA Real Estate Investor Magazine DECEMBER/JANUARY 2020
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