Property Investors Alert - Encouraging Developmental Work In The Inner City Of Johannesburg
Category Advice
One of the main allegations that have been brought against the development of the CBD of Johannesburg (including areas such as Berea, Yeoville, Braamfontein, and Hillbrow) is the beginning of the rot of the inner part of the city with more and more property investors moving in. With the growth of the property sector in the place, the government it seems has found an effective method of regenerating the rotting of the bowels of the city and how the developmental work could be transformed into efficient renewal programmes. This is something that former President Thabo Mbeki believes. The site had been taken up as a spot of non racial concerns for the mining sector of the metropolis.
It deteriorated into a dumpsite after the apartheid exodus, which is today a contemporary complex made of low to medium sized buildings with greenery clusters near the courtyards and protected spaces for kids to play. The CEO of JHC Johannesburg Housing Company, Taffy Adler, believes that the project had been started to cater to the recent substantial investments that had taken place in the region. Some of these incorporate the Market Theatre Square and the Nelson Mandela Bridge, where residential developments are also being made. With the improvements in infrastructure, the trend is that of a return of businesses to its city centre, and a rise in investment property.
This means that more and more people will also turn to the CBD. Mention may be made of the Brickfields project that had been termed a Presidential Job Summit Programme under the norms of the Egoli 2010 Programme. The Department of Trade and Industries has listed this as the Spatial Development Initiatives Programme. This is the second project in terms of rental housing amenities in Gauteng, after the launch of the Tribunal Gardens in 2003. It is also important that the project is a representation of the largest partnership of the public and private sectors in the field of residential development in South Africa.
There has been a total amount of R121m invested for the project, 35% of which had been stowed from the private sectors. The equity share for the project had been contributed by Blue IQ, ABSA, JHC, Gauteng Partnership Fund, Anglo Gold Ashanti, Gauteng Department of Housing and subsidies from the Gauteng Department of Housing. The loan of R50m had been financed by a partnership between the National Housing Finance Corporation and ABSA. The initial couple of phases have been covered including the 656 residential units of 1, 2 or 3 bedrooms.
An additional 190 will be added in phase 3, including development of the western wing of the site. Chances are that the southern and northern extensions will also be touched upon. Ever since July, there have been more than 1300 residents moving in to the property. Around 50 units are still unoccupied. 35% of the spaces in the complex are subsidised. They have been reserved for those who have a monthly earning that is less than R3500. The other units are occupied by people with mixed income. The President believes that the government will aim to reduce the boundaries between the first economy and the second.
Author: IMAGINE Properties
