Real Estate Investor Magazine South Africa July/August 2019 | Page 66

INSPIRATION
Affordable
housing on the
rise in Jo’burg
Transforming abandoned factories
BY ISHANI CHETTY
A
reported 37 abandoned factories in Johannesburg
will be handed over from the City of Johannesburg to
the private sector to be built into low-cost affordable
housing.
City of Johannesburg, Executive Mayor, Herman Mashaba
confirms that these derelict buildings will be used for
residential housing.
“
are untraceable and monies owing on these properties exceed
their value,” he said.
Once approval has been granted, the City will place the
properties on the private sector. The company in the private
sector will be awarded the properties if they can achieve the
largest number of residential units, the lowest rentals and
generate the highest job creation and investment from the
project.
“Following on this success in the Inner City, the multi-
party government has now identified
Following on this success in
37 abandoned factories across the City,
specifically those located in areas in
the Inner City, the multi-party
desperate need of housing opportunities.
government has now identified
Arising from their large stand sizes, the
37 abandoned factories across
yield of these properties will offer nearly
the City, specifically those
3000 housing opportunities in multi-
story buildings,” said Mashaba
located in areas in desperate
need of housing opportunities.
Arising from their large
stand sizes, the yield of these
properties will offer nearly 3000
housing opportunities in multi-
story buildings
Mashaba explains that the plans are yet to be approved but
is hopeful that Council will support the project due to the dire
need for housing.
“The City will now begin a process of preparing a proposal
to Council in August 2019, which will allow the City to begin
the legal proceedings of expropriating these properties as
abandoned buildings. These factories will be expropriated
within the existing legal framework of the Constitution. For
this we will utilise the fact that they are abandoned, owners
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JULY/AUGUST 2019 SA Real Estate Investor Magazine
“
The abandoned factories which
have been identified are located in
various areas, including; Kew, Devland,
Rabie Ridge, Booysens, Nancefield and
Doornfontein. The City has also identified
16 factories near Alexandra which could
relieve the high density of residents
currently residing in the area.
Mashaba explains why the City
of Johannesburg is looking towards
new forms of affordable housing.
“The City of Johannesburg,
previously, has sought to tackle the
housing backlog with a reliance
upon RDP housing each year which
could never begin to reduce the
challenge. This is why the multi-
party government has adopted an
approach which is producing sizeable
results in site and service projects,
informal settlement upgrades, social
housing and partnering with the
private sector.”
The private sector can play an
important role in generating low cost affordable housing creating a
symbiotic relationship benefiting both corporations and residents.
Mashaba says that the City is dedicated to providing
housing for all residents. “Our residents cannot wait for dreams
of new cities to materialise in the distant future, if at all. Our
multi-party government will focus on fixing our existing City,
turning derelict and decaying areas into high rise buildings
that modernise our City, achieve investment, create jobs and
provide accommodation to those who need it most,” he said.