SA Affordable Housing November / December 2017 // Issue: 67 | Page 32

CONTRIBUTOR
Resurrection by development? (Showing the Groote Schuur cemetery). The City’s housing policies encourage the provision of
adequate housing. Is this challenge being met?
is home to the largest concentration of people considered
to be a vulnerable group.
It is also widely acknowledged that the provision of new
housing opportunities for middle income earners is
inadequate. While government interventions have been
aimed at persons earning less than R15 000 a month, in
general, the income group between R15 000 and R30 000
a month has come off second best. Into this gap, several
projects have been launched, notably the MSEIZ in the
Woodstock in the Observatory Main Road strip. Chairman
of Rawson Developers, Bill Rawson and managing director,
Carl Nortje are experienced in the provision of appropriate
housing opportunities to help address these imbalances.
Rawson says that the company has refined the concept
of the secure, compact lifestyle apartment in areas close to
the central business district (CBD) where, by all accounts,
sales and rentals of new apartments have been brisk. “We
encourage buyers to come on board at an early stage of the
project. For example, at the Premier on the Main Road in
Newlands, there have been returns of up to 25% a year on
a two-bedroom apartment since project launch to
handover. It is a particular favourite for buyers who have
family at UCT.”
Development in the urban development zone (UDZ) area
of Observatory Main Road particularly excites Rawson.
Here, potential exists for not only great ROI, but also
sustainable income for the investor. “The UDZ is a system
whereby tax relief is obtained on capital invested in
income-earning property in a designated area. This means,
as long as your dwelling is earning rent, you may claim a
portion of your purchase price as a tax rebate annually
over a set period, as long as you are earning income from
100% occupation,” he explains.
ADVICE TO THE MARKET
Nortje suggests that buyers ask several key questions prior
to investing in the current market in Cape Town. With the
benchmark being R/m 2 prices on offer against those in the
CBD – they further look for value, check for easy access to
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NOVEMBER - DECEMBER 2017
AFFORDABLE
SA HOUSING
and exit from the CBD, such as MyCiTi; interrogate the
growth potential of the investment where certain
developments have delivered returns way above the
average; look for ease of access to academic institutions
for student accommodation; seek out and insist on quality
– durable good looking finishes as standard options – and
state of the art passive and active electronic security.
RAPID TRANSPORT
According to Herron, an imminent roll-out of Phase 2A of
the MyCiTi service to Wynberg and Claremont is central to
the MSEIZ. “This will greatly enhance the potential of living
in Observatory, enjoying its vibrant lifestyle and
commuting to the CBD,” says Rawson.
Herron says that the City would like to see the private
sector implement its vision. This means that the public and
private sector must adapt the approach to spatial planning
and urban development. “A more compact city with higher
densities and more efficient/mixed land use,” he notes.
Indeed, the Western Cape Provincial Government MEC
for Economic Opportunities, Alan Winde, points out that
development is key to growth in the Western Cape.
“We are home to four universities and engage in a wide
range of skills development programmes aimed at
supplying the labour market with a relevant and competent
labour force. We have the target of introducing 32 500
qualified artisans into the workplace by 2019,” he says.
With skills development and the provision of
appropriate housing high on the list, it is not surprising to
note that certain key suburbs to the south of Cape Town’s
CBD have experienced an interesting evolution.
“With development activity which aims not only to
provide cost effective housing opportunities to the
middle-class income group, but also lifestyle
opportunities, it seems to be on the right track,”
suggests Nortje.
*Griffiths acknowledges the input received from the department
of Economic Opportunities and the City of Cape Town.