For most of us a house is the most significant asset we can own. This is amplified for low income property-owning urban households where the affordable housing market offers significant wealth creating potential for beneficiary households. However, in this market the ability of households’ to realise value from their housing assets is frequently and significantly hampered by a number of challenges.
Some quick numbers!
• Affordable properties represent a substantial portion of the residential property market in South Africa
• 60% of the 6.3 mill formal, registered properties were valued <R600k
• 35% were considered ‘entry level’ properties valued <R300k
• +/- 1.8 mill (30%) of registered properties are “RDP” properties.
In this episode we consider some of those challenges and what is preventing households from realising the true value of their worth.
Our guests in this Talking Transformation Episode are Ilana Melzer Engagement Manager at 71point4 and Kecia Rust Executive Director and founder of the Centre for Affordable Housing Finance in Africa (CAHF). Their insights and expertise of the South African housing markets and more broadly, continental trends challenge many preconceptions of value and worth of the housing products and asset value in these lower-income households and communities. They also share their frustration with the – at times –systemic challenges facing large numbers of these households. You'll also get to hear how the Transaction Support Centre in Khayelitsha, Cape Town came into being and some of the amazing success and substantial challenges they’ve dealt with.
In a period of sustained flat-lined economic activity in the country, Illana and Kecia argue with facts and anecdote that this a burgeoning economic sector which is frequently misunderstood and often ignored. It’s a Masterclass from two of the leading practitioners on this key housing issue. We trust you enjoy the episode.
Recorded 6th November 2019
