OpenUCT :: Browsing by Author "Mooya, Manya"

Browsing by Author "Mooya, Manya"

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Open Access
Critical Analysis of Station Area Development on PRASA owned land: The case of the Northern Corridor Railway Line Cape Town
(2022) Jonathan, Lesley-Anne Maria; Mooya, Manya
The presence of well-located vacant land parcels within a city plays a contributing factor towards undermining the urban form and purpose of a well-run city. Property developers who seek out land for development in South Africa are limited to options of well-located small vacant land parcels or land parcels with existing developments that do not quite meet the demands within the property market. The presence of vacant rail station land parcels within South African cities provide an opportunity for improved urban form through the development of these prime locations. In the past the Passenger Rail Agency of South AFRICA (PRASA) have undergone the development of a restricted number of these land parcels, however given the total number of stations in South Africa the number of developed station area land parcels has been limited. The Northern Corridor railway line in Cape Town includes twenty-six rail stations, twenty of which are owned by PRASA, and the other six are owned by Transnet. The twenty PRASA owned rail stations include a total of 72 hectares of vacant station land parcels along the line with only two stations, with a total of 16 hectares between them, having seen progress towards development to date. This research has identified a gap in South African academic research that critically analysis the lack of development at vacant station land parcels in South Africa, and thus focus' in on the Northern Corridor as a case study, with particular attention on PRASA owned land parcels. This research seeks to answer the question of, why have real estate developments not been enabled and located at stations along the Northern Corridor railway line in Cape Town? Which is done through a literature review that unpacks theory on property development processes, Transit Oriented Development (TOD) and the Transport land use feedback cycles. Furthermore, the paper has made use of international precedent studies and empirical research to inform the research, and seeks to critically analysis legislative and policy pieces that govern and influence how station area land parcels are developed and managed in South Africa, and Cape Town in particular. These reviews provided valuable input into the design of the semi-structured interview questionnaires that were used as the basis of my research interviews. Through the completion of twelve semi structured interviews the primary data had been collected for this research, which informed the findings chapter for this paper and predominantly was used to provide direct insights to answering the research question put forward in this paper. Using these insights, proposals are made that PRASA together with the City of Cape Town and the Western Cape Provincial Government could apply towards improving the development of station area land parcels along the Northern Corridor.
Open Access
A critical review of the approaches and attitudes of South African property valuers towards the valuation of hotels under a contemporary management agreement
(2017) Godwin, Wayne; Mooya, Manya
This paper looks at the attitudes and approaches of South African property valuers to the valuation of hotels as an asset class. The paper focuses on the impact in a shift towards management agreements in the sector. Management agreements are a relatively new tenure agreement in South Africa's hotel sector, and although these grew in popularity globally in the 1970's and 1980's, the sanctions which prevented multinational companies wanting to do business in South Africa, allowed local hotel groups to grow in the absence of the world's leading lodging companies. South African property valuers were less exposed to the evolving valuation frameworks and best practice approaches, in the absence of these global companies. This study establishes a framework for optimal hotel valuations under a management agreement, with a review of literature discussing the correct approach to valuing a hotel under such an agreement as well as the the current state of the valuation industry in South Africa; as well as areas of weakness that South African valuers have with certain techniques and approaches that are established as important for hotel valuation. The empirical study that was undertaken surveyed members of the South African Institute of Valuers. The findings present the first comprehensive look at valuation of hotels as an asset class in South Africa; and show that almost half of property valuers in South Africa perceive themselves to be competent in valuation hotels under a management agreement whilst perceiving there to not be a significant difference required for the approach to valuing a hotel under a management agreement. The results of a hypothetical case study within the survey presented a divergent view of competency, with low levels of full competency demonstrated. The study brings much needed perspective on the sector at a time where management agreements are becoming more prevalent and investors are looking to valuers for strategic insight and assurance around the asset class.
Open Access
Financing affordable urban high-rise middle-class residential property development in Malawi
(2022) Jumbe, Comfort W J M; Mooya, Manya
Malawi's middle-class which must adapt to the experiences of liberalised housing sector, have not been able to do so due to increased exclusion in housing finance, imbalanced demand and supply forces in land resources, and disincentivised property development environment. Luckily, a strong demand for housing in Lilongwe City was for the first time met by the provision of urban high-rise residential plots. However, it remains untold if the mortgage industry will ably fund these developments and if innovative financing systems, while being successful elsewhere in the world, can do the same in Malawi. Using a mixed study approach and semi-structured questionnaires, interviews were conducted to senior real estate stakeholders. Data from primary and secondary sources under two case studies were analysed qualitatively and quantitatively using thematic analysis and descriptive statistics respectively. Key findings of the study revealed that technology-based innovations, flexible loan conditions, and appropriate legislation remain key contributors to financial institutions' inability to offer cost-reduced property loans. However, these commitments cannot be met in the short to medium terms making access to funding for affordable urban high-rise residential property developments (HRPD) impossible. Further, compromise by state organs have led to departure from prioritising HRPD in Lilongwe City as well as delayed implementation of housing subsidies, leaving the housing sector at a standstill. Finally, while it is currently illegal to crowdfund in Malawi, real estate crowdfunding (REC) has proved to be ideal for financing urban HRPD in the country as is the case in the continent. It is recommended that the state organs must start the process of making available land for urban HRPD and strengthening the land use control systems in a bid to reduce property development risks. This should be supported by unlocking subsidies and relaxing regulation to allow for REC to change the affordable housing finance landscape in Malawi.
Open Access
Financing low-income housing in Windhoek, Namibia : assessing the loan scheme of the decentralised Built-Together Program using the Balance Scorecard
(2014) Kisting, Harold; Mooya, Manya
The purpose of this mini dissertation is to review the adequacy of Built-Together Program loan funds for the large-scale delivery of adequate housing for low-income groups and to assess the performance of the loan scheme using the concept Balance Scorecard as an assessment tool. The research method employ s interview and survey methods to collect data. Data was collected and analyzed from a n administrator and beneficiary perspective to understand the workings and the main characteristics of the program. The primary beneficiaries of the Built-Together Program are the vulnerable in society and comprise primarily of women and single parents. It is therefore critical that the efficiency and sustainability of the loan scheme be improved to ensure that the needy in society continue to benefit. One of the major findings of the research is that the Built-Together Program is inadequate to deliver the most basic low-income house. It is therefore not surprising to hear and read about the dissatisfaction about the Built Together Program expressed by the Namibian Government, local and regional councils and beneficiaries in the local media. The research recommended that the authorities review the Program and bring it in line with the critical successes requirements for national housing policies and strategies.
Open Access
Impact of planning and building regulations on affordable housing development by the private sector in South Africa
(2019) Ekpo, Christiana; Mooya, Manya
This study emerged from existing literary evidence that planning and building regulations affect the supply of housing and research in this area usually takes a very descriptive route that lacks an explicit theoretical framework that can guide stakeholders for better research outcomes. The rationale is based on the context that despite the many initiatives introduced by successive post-apartheid governments to improve the housing situation in South Africa, not much has been achieved to improve the enormous housing backlogs. Affordable housing, being one of the strategic mechanisms used by the government for housing delivery is laden with problems. Many factors have been attributed to the challenges among which are land use policies and building regulations, administrative bottlenecks, budgetary constraints, and so on. To effectively manage these challenges, a more proactive private sector participation has been advocated. However, this requires that proper regulatory frameworks are put in place to ensure that developers deliver housing that meets necessary safety and quality standards and still have some return on investment. Unfortunately, legislative structures which should ideally be supportive, instead, hinder development and create barriers for private developers The study thus investigates three related questions. Firstly, what are the main planning and building regulations that impact on affordable housing by the private sector? Secondly, how do the planning and building regulations affect the total cost of affordable housing development by the private sector? Thirdly, what scope exists for the change and would, relaxing these regulations, enhance the supply of affordable housing developments by the private sector in South Africa? Corresponding to these questions is the first hypothesis which states that planning and building regulations impose a significant cost on the developers and thus deter the supply by the private sector. And secondly, relaxing some of the planning and building regulations could improve affordable housing development by the private sector. The study employed a qualitative approach to gather empirical data using household surveys and semi-structured interviews from developers and consultants on five case studies together with key informants’ interviews from government officials. With the main theoretical tools of Institution Analysis and Development, this study developed a conceptual framework that determines the main planning and building regulations that impact on affordable housing supply by the private sector. And by employing insights from New Institutional Economics tools, these regulations are treated as institutions through which development rights are obtained. The study reveals; that even though planning and building regulations are affiliated with better quality housing products, they significantly affect cost, affordability and location outcomes. That no national policy tool exists to guide affordable housing implementation processes; the current city’s policy instruments are contradictory to the propagated concepts meant to enhance housing supply. The study discovers that the government has huge land parcels for different intentions, but makes it available only to a developer whose objectives align with theirs and developers lack adequate funding and incentives to motivate them. Finally, the study reveals that even when case studies are located outside the urban core of Cape Town, dwellers are happy and satisfied with the location and careless about the system’s inefficiencies and there is no direct relation between planning and building regulations and location other than the fact that regulations contribute to the bad location of developments.
Open Access
Property rights and the production of the urban built environment in Zambia
(2015) Munshifwa, Ephraim Kabunda; Mooya, Manya
This study investigated the phenomenon whereby settlements with ostensibly similar socio- economic status exhibited significantly different physical outcomes, such as in the quality of houses, spatial arrangements and available services. The study investigated three related questions. Firstly, given the similarity in the levels of incomes, what is the relationship between property rights and physical development outcomes in low income settlements? Secondly, what are the underlying mechanisms and processes by which these physical developments are produced? Thirdly, what is the relationship between formal and informal institutions and organisations in the production of the built environment? Corresponding to these questions were three hypotheses. The first hypothesis was that, at any given level of average incomes, different strengths of property rights have differential effects on physical development outcomes. The second hypothesis was that different property rights are associated with different mechanisms and processes in the physical development process and thirdly that situations of extra-legal property rights require State mechanisms in the production of the built environment. Using a theoretical, conceptual and analytical framework provided by the new institutional economics, the study employed the comparative institutional analysis methodology to determine the influence of three types of property rights on the production of the built environment in Zambia. These rights were categorised as informal, semi-legal and legalised, and are to be found respectively in Mindolo North, Chipata and Ipusukilo, three settlements in Kitwe selected as case studies. Empirical data was collected using household surveys, focus group discussions, semi-structured interviews and observations. The study finds that stronger property rights are associated with better quality physical development outcomes. Furthermore, the study finds that different types of property rights are associated with different mechanisms and processes for the production of the built environment. Finally, the study finds that where property rights are extra- illegal or informal, successful development requires that there be facilitative interaction between formal institutions of the State at one hand, and informal institutions and organisations at the other.
Open Access
Property valuation under uncertain market conditions: a case of the Lagos property market
(2023) Oladokun, Sunday Olarinre; Mooya, Manya
This research seeks to provide an understanding of how the nature of the property market affects the valuation practice and how valuers manage such conditions during the valuation process. Specifically, the study investigates challenges that uncertain conditions of the Lagos property market pose to valuers and how valuers navigate a path through these challenges. This is with a view to providing a theoretical explanation for valuers' behaviour in an uncertain environment. The rationale for the study is that valuers' behaviour is influenced by the nature of the environment where they operate; however, there is yet to be a clear understanding of how valuers manage the conditions of property markets fraught with high uncertainty. The study pursues five objectives, namely, an examination of the nature of the Lagos property market as it relates to property valuation, an assessment of the nature of challenges valuers are exposed to within the Lagos property market and an investigation of how valuers manage the challenges of the uncertain nature of the Lagos property market. Others are an analysis of the existing real estate education in Nigeria to establish how it prepares valuers for the nature of the market they operate and a proposal of a framework for a better understanding of valuers' behaviour in an uncertain environment. Two working propositions were set for this study in relation to these objectives. Firstly, it was proposed that the Lagos property market exhibits a high level of uncertainty which poses challenges to property valuation practice. Secondly, it was proposed that in dealing with the challenges of the market, valuers would put up certain coping strategies, which can be understood through their cost minimisation behaviour. The study employs an exploratory sequential mixed methods research approach where qualitative and quantitative data were collected sequentially from multiple sources. Specifically, qualitative data were extracted from expert valuers using semi-structured interviews, while quantitative data were extracted from professional valuers and final-year students of tertiary institutions using questionnaires. Interview data were analysed using thematic analysis, while data extracted through questionnaires were analysed using descriptive and inferential statistic tools. Furthermore, this research explored the theoretical lens of Transaction Cost Economy (TCE) to explore the understanding of valuers' behaviour in an uncertain market. The study finds that the Lagos property market is characterised by features that directly affect the valuation practice. The market characteristics include the lack of a formal database of market transactions, weak institutions/corrupt property rights registration system, the dominance of valuation for mortgage purposes, and an improved standardisation and internationalisation of professional services. The shows that the nature of the market presents uncertain conditions and poses peculiar challenges to valuers. The study also finds that valuers put up various strategies to manage the challenges. The study established that while some of the identified valuers' coping strategies are logical and expected, others seem counterintuitive and unprofessional. However, the coping strategies are contextual in nature, as they are based on valuers' understanding of the nature of the market. The study also finds that gaps exist between academic training and the practice of valuation in Nigeria. That is, valuers' academic training does not reflect the actual experience of valuers in the market. Thus, the results partially confirm the first proposition and substantially confirm the second proposition. Overall, the study concludes that the uncertain nature of the Lagos property market opens valuers to several forms of coping strategies influenced by their understanding of the market environment and academic training. Assessing valuers' behaviour through the lens of TCE, the study demonstrates that while some valuers' coping strategies reduce valuation uncertainty, others increase the uncertainty and bias in valuation. It is also concluded that the provisions of TCE more accurately reflect the actual experience of valuers in a volatile and uncertain market. This study makes a number of contributions to knowledge. Specifically, it contributes to theory by expanding on the principles of TCE and applying them to the property market and valuation practice. It contributes to policy development by offering insights that can help develop improved ethical and professional standards. Lastly, the study contributes to the empirical literature by providing a deeper understanding of how valuers utilise heuristics in their decision-making processes.
Open Access
The performance of non-core property assets held by a state owned enterprise: a case study of Transnet
(2021) Munsanje, Abednego Nchimunya; Mooya, Manya
This research looks at Transnet a State owned Enterprise with a key focus on how it manages its non-core property assets that are currently highly dilapidated and in a poor state of repair with resultant sub-optimal returns being derived. The non-core property portfolio of Transnet is immediately visible, by way of comparison, of their deteriorating condition as opposed to those in close proximity or surrounding them that are privately owned. Transnet is a Freight and Logistics state owned company that owns huge tracts of prime and well located land countrywide that are not optimally utilized and also holds a large property portfolio consisting of predominantly 'D' grade buildings that are currently physically, functionally and economically obsolete lacking constant maintenance or engagement in redevelopments. Most assets were initially purpose built to support freight and rail logistics operations but have overtime become functionally obsolete due to changes in logistic chains operations, advancements in technology and nature of goods coming unto the railway system. The current study was aimed at assessing the reasons as to why the non-core property assets are physically deteriorated and achieving below market related returns. The study establishes a framework for optimal management of non-core property assets in Transnet, with literature review establishing the correct approach to issues impacting real estate management such as finance, maintenance and facilities management, property management structure and systems, legislative framework guiding SOE's and corporate governance. Theoretical models have made important contributions to the formalization of certain problems related to management of SOEs and the need to improve corporate governance with a lot of research done in SOEs in China and Europe in general. The key focus of this study was to establish the causes that have resulted in the noncore property assets being highly neglected and in a poor state of repair resulting in sub-optimal returns being achieved on portfolio. The results of the case study within a survey presented a divergent view of core property assets being better managed than non-core property assets. ii The research methodology undertaken was a survey within a case study. The case study is Transnet and the target respondents consisted of personnel involved in the direct management of core and non-core property assets within the company who were interviewed and questionnaires were also used to gather research findings data. The secondary data was analyzed using quarterly asset management data and benchmarked with Investment Property Data (IPD). The research findings present a comprehensive list of challenges faced by Transnet in the management of non-core property assets with the greatest impact being the Public Finance Management Act and National Government Immoveable Assets Management Act which clearly stipulates that when assets no longer serve the core business they must be disposed of. It is also clearly evident that funding cannot be granted for property development projects that are not aligned with the core business of Transnet which is freight and rail logistics. The study brings to the attention that capital investment and strategic decisions related to management of non-core property assets including legislation need to be reviewed. This will greatly shape the future of the non-core property business and its ability to manage its future operations financially viable and sustainable. Alternative sources of funding such as the Real Estate Investment Trusts on the Johannesburg stock exchange are other avenues that can be explored to raise capital funds for upgrading existing property portfolio or raising funds for property developments. The key focus on how the enterprise should behave, and what should be done is to make non-core property assets financially sustainable and viable for the business to achieve desired returns.
Open Access
The planning system, property markets and the development of affordable housing: case studies from Cape Town
(2019) Musvoto, Elizabeth Mirika; Mooya, Manya
The study investigates the underlying causal mechanisms behind the outcomes in the affordable housing market in South Africa. The rationale for this study is the persistence of unfavourable outcomes in terms of location, density, integration and affordability of affordable housing developments. The post-apartheid government adopted housing policies, supporting planning policies and directed financial investment towards the development of integrated affordable housing at appropriate locations and densities. However, more than 20 years after democracy, there is no evidence that affordable housing is integrated and being developed at higher densities and appropriate locations, despite the principles of densification, integration and the creative use of town planning tools bestowed in the housing policies. This study, using structure and agency theory, investigates how structural variables (planning system and policy framework, resources for housing development and ideological perspectives) influenced the agency of role players in producing the current outcomes in the affordable housing market. The study investigated two interrelated questions. Firstly, how have the ideals of planning incentives, densification and integration reflected in the housing policies influenced the post-apartheid planning systems? Secondly, how do the planning system and other structural variables impact on the property and housing market and how does this, in turn, produce the current outcomes regarding the location, density, integration and affordability of affordable housing. Corresponding to these questions were two hypotheses. The first was that the principles of planning incentives, densification and integration espoused in housing policy have not been sufficiently reflected in the planning system, leading to failure in stimulating the private sector to supply affordable housing. The second hypothesis was that the planning system fails to counteract the tendencies of private developers to locate housing at inappropriate densities and locations. Using the conceptual framework designed from structure-agency theory, this study adopted a comparative case study method to investigate how the interactions of role players with the structural variables led to the outcomes in terms of location, density, integration and affordability of five affordable housing developments in the City of Cape Town metropolitan area. The case studies of affordable housing developments were categorised in terms of the type of developers, tenure options and land ownership. The empirical data were collected using household surveys and semi-structured interviews. A household survey of 395 beneficiaries was conducted in the affordable housing developments. Semi-structured interviews were conducted with developers and planning consultants in the private sector, state policy makers and policy-implementers at the City of Cape Town and the provincial Department of Human Settlements, housing activists and housing policy specialists. The study finds that while the principles in housing policies are reflected in the planning system, there is no clear indication on the meaning and expected outcomes, leading to a disjuncture in policy intent, implementation, and failure to stimulate the private sector to supply affordable housing. Furthermore, the study finds that the planning system has lagged behind in providing adequate legislative and planning tools to support the development of affordable housing. The study finds that the planning system and policy framework has constrained the development of affordable housing and failed to successfully curb the tendencies of developers to develop at inappropriate locations and densities. The study finds that while the structural variables such as the resources for housing development and planning system and policy framework impacted on the location, density, integration and affordability of affordable housing; the ideological perspectives of role players have impacted on the roles and distribution of resources towards the development of affordable housing. The study concludes that while the housing policy has been progressive, it is not sufficient to address the challenges in the affordable housing market. It is recommended that policy interventions targeted at enhancing the location, density, integration and affordability be implemented through the three areas that constitute the structural environment, namely the planning and policy framework, resources for housing development, and ideological perspectives of role players in order to impact on the agency of role players to create an environment conducive to the development of integrated affordable housing at higher densities and appropriate locations.
Open Access
The use of the Discounted Cash Flow (DCF) method as a method of valuation within the South African property industry: A critical review
(2015) Pienaar, Petrus Terblanche; Mooya, Manya
The Discounted Cash Flow method of property valuation is a fairly new method and research in other English speaking countries indicated a trend towards the use of the DCF method in preference to the Capitalization method despite an initial hesitance due to the perceived complexity of the method. The aim of this study was therefore to form an understanding if similar perception of complexity exists in South Africa and how these perception influence the perceptions and preference of use of the DCF method of valuation by valuation professionals within the South African context. The research was guided by three specific research questions which probed valuers' methodology preference, valuers' education, and difficulties experienced in accessing data needed for DCF valuation input variables. A mixed method research approach was adopted using questionnaire and document surveys to gather data from valuation professionals, lecturers of valuation education programs accredited with the SACPVP, and the curricula of these programs. The results indicate a general low preference for the use of the DCF method of valuation while the Capitalisation method is indicated as the most preferred method. This low preference was found to be the result of a high degree of difficulty experienced in accessing data needed for DCF valuation input variables. It was also found that the level of valuation education increases the acceptance and preference for the use of the DCF method.
Open Access
Valuation Problems in Developing Countries: A New Perspective
(2021-12-08) Cheloti, Irene; Mooya, Manya
Valuation problems, such as valuation inaccuracies/variations, client influence, and the use of heuristics, are common problems in property valuation practice globally. These problems have generated debate in recent times under the rubric of “behavioural issues in valuation”. This paper examines valuation problems in developing countries, as well as the current efforts that are undertaken to address these problems, with a view of determining the best approach to explain and/or address them. This stems from the persistence of valuation problems despite efforts undertaken to improve the practice of valuation. The study involves a survey of registered and practising valuers in Kenya. Respondents were asked to indicate valuation problems in practice, adopted strategies, and recommendations to address the said problems. It emerged from the study that valuation problems not only result from valuer misconduct but also market-related problems/the valuation environment in developing countries. The study further found that efforts to address these problems are mainly focused on improving valuer conduct while neglecting market-related problems (problems related to the nature of the valuation environment in developing countries). Based on these findings, the study concludes that valuation problems in practice are better understood in the context of both categories, i.e., valuer conduct and market-related problems, and recommends a holistic approach to address these problems by categorising them appropriately.

Browsing by Author "Mooya, Manya"

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