PART 1: SEIZING OPPORTUNITIES IN CAPE TOWN’S AFFORDABLE HOUSING RENAISSANCE

Velda Derrocks, TUHF’s Regional Manager for the Cape Region.

In recent times the Western Cape has witnessed a renewed focus on and revived political enthusiasm for affordable accommodation development, sparking a wave of positive movement in the affordable rental housing market, particularly in inner-city, in-city and burgeoning urban nodes. This was further underscored during last month’s Western Cape Property Development Forum (WCPDF) 11th annual conference, despite national election anticipation. TUHF experts shed light on the trends at play.

As a WCPDF member, TUHF attended the recent conference as an invested party, keen to understand the progress on commitments made during the previous conference and engage with all market role players on fostering a collaborative and enabling environment.

Speaking from the conference, Velda Derrocks, TUHF’s Regional Manager for the Cape Region, said: “I did feel that some of the feedback and from an economic outlook perspective as well as plans and commitments to support expansions in the regional property markets was a bit subdued, though this is not surprising as this year’s conference was held a couple weeks ahead of the country’s general elections. However, the collective impression on the outlook and prospects of the regional property markets is still cautiously optimistic. There’s commitment from public sector and appetite from private sector – and I think we’ll see a lot more movement post the elections and once there’s clarity and alignment on some of the planning aspects. It is also encouraging to note from our consultations with public and private sector players in and around the conference that there is collective confidence that progressive steps are being taken and in the right direction to open up property markets across the region.”

Nahim Ramzan, TUHF’s Portfolio Manager in Cape Town said that part of this can be attributed to how the Western Cape government has responded to the need for quality, affordable rental housing options that are well placed to access workplaces, public transport and other important amenities. “The focus is visible across most areas where urban densification is pressing. There’s a growing appetite to fund developments in these areas, emphasising renewal and refurbishment projects aimed at making quality, affordable rental housing available. For property entrepreneurs with the ability to see the potential in affordable housing as an asset class, these drivers represent an excellent opportunity.”