moladi establishes construction training skills college

The backlog of houses in South Africa and the huge unemployment rate has prompted moladi to establish moladiCOLLEGE. The focus of moladiCOLLEGE will be to create employment and develop skills, creating an opportunity for Government to make good on its promise to deliver housing and create employment. moladiCOLLEGE has partnered with CETA (Construction Education and Training Authority) and Services SETA to train veterans

For more information visit www.moladiCOLLEGE.co.za

Affordable housing shortage 'stifles market'

Affordable housing shortage 'stifles market' - South Africa

Lack of affordable housing was a major obstacle to sustained demand in the housing sector and could lead to the slowing of house price growth to single digits later this year, a property group said yesterday."Without growing demand, price growth will decline," Harcourts Africa said. Chief executive Martin Schultheiss said the South African market's greatest need was in the essential buying category. "People need an affordable roof over their heads, as opposed to leisure or speculative buying."It was not only essential that greater volumes of affordable units were brought to market, not only for prospective owner-buyers but also for the affordable rental market, where better stock levels would spur greater investment."The household sector remains under pressure, with the latest figures showing the ratio of debt to disposable income still at nearly 80 percent," Schultheiss said. While this painted a rather bleak picture for prospective home owners, especially at the lowest end of the market, it also meant that they would be looking for affordable rental homes if they could not muster the finances to buy their own.

"Developers would do well to take note of this need and adapt development plans to cater for this sector."Although affordability is a common denominator, property investors are also looking for additional features - and developers who want to tap into this market should take heed."Schultheiss said investors wanted compact properties with easy access and hard-wearing surfaces for easy maintenance. "Tenants typically occupy units for an average of two years and landlords are keen to keep refurbishment costs to a minimum at the end of a lease period."Investors might also prefer built-in appliances and pre-paid meters for electricity. "And of course affordable units with low maintenance requirements would find favour among owner-buyers too," he added.

Keywords: - affordable housing, house price growth, development, affordable rental homes, South Africa, property investors, property group, moladi, formwork, construction, market, reduce

Banks eye developing low-cost housing

Banks eye developing low-cost housing

SOUTH African banks are taking the initiative to drive business in the low- cost housing arena by buying land themselves and getting it zoned, but they are being held back by delays of three years in getting plans approved.
While there is a profit motive behind the move – some banks are seeing business of R5- to R6-billion in this area – and they charge interest on loans of about R400000, a quicker move into this direction has an enormous social economic imperative.
First National Bank chief executive Michael Jordaan said 240000 families could qualify for low-cost housing right now, but the problem was a lack of supply – for every one house on sale there are seven potential buyers waiting to buy.
Because of the delays in getting everything approved – from zoning to roads to setting up electricity with Eskom – developers are unable to fund the projects, which is why banks have stepped in to buy, zone and set up bulk services.
Jordaan said unblocking supply was a key to solving many of the country’s ills, as once people owned homes it developed the middle class – the lifeblood of an emerging economy. It then flowed through to ensure better education for children who have roofs over their heads and sustainability of jobs as people want to keep their houses.
“We have to unblock supply,” Jordaan said.
FNB has 22% of new business in this area, behind Standard Bank, but wants to grow if it could it as it is a sustainable business. An interesting fact is arrears at this area of the market are lower than those in higher- earning areas.
The low-cost housing arena is also an area where Absa is looking to play a more active role as well.
Absa entry-level banking managing executive Lawrence Twigg has noted that 20% of personal loans are related to improvements on houses bought through the low-cost housing unit. – BusinessLive

moladi at www.moladi.net

Keywords - ABSA, FNB, Standard Bank, low cost housing, moladi, banks, development, winner, award, alternative, backlog

Deyaar, which once focused primarily on high-rise buildings, is shifting its focus to low-cost housing.

Deyaar, which once focused primarily on high-rise buildings, is shifting its focus to low-cost housing. Industry Summits Reuters

Deyaar, which once focused primarily on high-rise buildings, is shifting its focus to low-cost housing.

DUBAI (Reuters) - Dubai developer Deyaar DEYR.DU, which on Monday announced it had cut 20 percent of its workforce, said it will re-start developing projects in 2010 and set up co-investment funds for its overseas expansion plans.
"2009 was a development holiday. In 2010 we have to start developing again," Markus Giebel, the firm's chief executive told the Reuters Middle East Investment Summit on Tuesday.
Dubai's second-largest listed developer, which plans to double the size of its property portfolio over the next five years, has handed over seven projects to investors in the third quarter and committed to six more in 2010, it said earlier in October.
Giebel said on Tuesday he hoped to close the firm's 500 million dirham ($136.1 million) distressed debt fund by the end of the year and would "attempt" to launch a co-investment fund in 2010 of similar size.
The firm is looking at several expansion opportunities across the Middle East, including Saudi Arabia and Lebanon, but would take its time in identifying projects, he said.
"The shelf life of a product in 2008 was two to four days. Now the shelf life is six to twelve months so we have all the time in the world to make a decision," he said, adding the firm had over 500 million dirhams of cash to spend.
"100 million dirhams investment goes a long way ... 100 million dirhams gives you a billion dirhams of development in a joint venture structure."
Deyaar, which once focused primarily on high-rise buildings, is shifting its focus to villas and low-cost housing.