/ 6 September 2004

DA frets about property values

The South African government must explain how it will secure property values in affluent areas if it plans to build low-income homes and flats in those suburbs, the Democratic Alliance said on Sunday.

The Sunday Times reported that the Housing Department plans to build low cost housing near established suburbs to encourage different income groups to live together.

”If government says it will protect the value of other property in affluent areas, then the director general of housing needs must indicate how they [government] will safeguard and secure these properties,” said DA housing spokesperson Butch Steyn.

He said land in affluent areas was generally much more expensive.

”The DA is in favour of the policy if government can indicate how it will safeguard surrounding property values.”

Speaking during the launch of government’s new housing policy in Pretoria on Thursday, Housing Department director-general Mpumi Nxumalo said the plan would double the pace of housing delivery from April next year and thousands more would be eligible for subsidies, to address a backlog of about 2,4-million homes.

”The primary objective is to build a non-racial society,” said Nxumalo.

Nxumalo said the 10-year programme to end shack living would seek to integrate rich and poor communities, without undermining the value or security of property owned by the wealthy.

”It has to be done within reason so areas do not become a slum. If one only puts the poor together, the area will inevitably become a slum, so people [of different incomes] must be put together, but within limits. One cannot have a reconstruction and development programme scheme right next door to a R3-million home,” Steyn said.

”The reality one must has to face is that one cannot very well have a R70 000 house near a R3-million house for example — people move in different social spheres and it won’t work, but putting a R70 000 home near one worth about R400 000 could work.” – Sapa