Browsing by Subject "land"

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    Open Access
    Exploring the property development risks in modern South Africa and their impact on property development projects.
    (2025) Nomlomo, Chulumanca; Viruly, Francois
    Property development in South Africa is inherently capital intensive and risky but has the potential to reward brave developers through high returns. The risks that property developers face is multi-layered and unique to each project, requiring discernment on the part of the developer. However, projects likely to yield high returns are fairly easy to identify, and mitigation strategies can be implemented to ensure that property development projects are completed within cost and time limitations, and to a high standard. The intention of this study was to identify the property development risks in modern South Africa and the impact of these risks on property development viability, and to make recommendations on how identifiable risks may be mitigated in the property development sector. Property professionals were selected as participants in this study. These included senior executives in some of South Africa's largest development companies, people in the property finance industry, and those who deal daily with property development projects. All participants were interviewed one-on-one. This strategy yielded insight into the research questions, since participants were able to draw directly from their personal experiences. Responses in the interviews answered all the research questions and thus informed the recommendations made in this study. The study revealed that the main risks to property development projects in South Africa are political and socio-economic factors, municipal inefficiencies, social unrest, increases in municipal costs and materials, and lack of consistent power supply from Eskom. Increased capital costs in property development projects have reduced returns for property developers, forcing many to consider investing outside of South Africa. This was identified as the main impact of the risks on property development projects. The recommendations made in this study to mitigate property development risks are government subsidies for bulk infrastructure, fixing of material prices, greater engagement of all stakeholders in the property development process, ensuring that construction contractors have the required capacity and skills, greater use of technology in property development projects, and municipal rebates for property developers, in order to incentivise development. It is also recommended that in all property development projects, developers factor in potential cost increases.
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    Open Access
    Scrutinising public land release: an investigation into the advantages of long-term leasehold arrangements in the delivery of well-located affordable housing
    (2024) Van Rooyen, Raevaldo EJ; Winkler, Tanja
    Thirty years after the ending of apartheid, South African urban regions are still battling with an ongoing affordable housing crisis. Amidst growing critiques of the underutilisation of well-located state land, the Presidency acknowledges and intends to act on this through the accelerated release of public land to deliver more affordable housing opportunities in urban areas. However, within contemporary regulatory frameworks, urban practices around public land release have largely served short-term economic priorities through an emphasis on freehold disposal. This has resulted in a stagnant urban landscape with little room for urban land reform, perpetuated by a deterrence from state officials to engage in innovative practices around land release. Neglecting to understand the modalities and mechanisms around public land release for affordable housing has detrimental consequences for planning and human settlement development. This warrants a critical investigation into alternative mechanisms that present advantages for different circumstances. As such, the overall aim of this study is to understand the advantages of long-term leasehold arrangements in the delivery of well-located affordable housing as an additional mechanism for public land release. Methodologically, a Critical Discourse Analysis framework is used, supported by interviews and case examples, to answer the main and subsidiary research questions. The results of this study demonstrate the potential of long-term leasehold arrangements for the state and other affected stakeholders in the delivery and operation of affordable housing. These advantages yield long-term spatial transformative capacity that benefits all relevant stakeholders. Additionally, the results have highlighted the deficiencies in the regulatory systems for public land release and how this inhibits affordable housing objectives. Moving forward, the knowledge from this research will deepen the understanding of the relationship between planning and property systems. The study also informs key considerations regarding public land release and affordable housing. In this, it proposes legislative, policy and planning recommendations to facilitate effective long-term leasehold arrangements and holistic state property management.