Demand for Affordable Housing Grows
RBA Housing, an affordable, fully bonded housing developer, hopes to complete 1037 houses this year to cater for the high demand from emerging middle class buyers. RBA Housing specialises in developing properties between R250 000 and R700 000 and has 600 houses under construction in 20 project areas of Johannesburg, Tshwane, the Vaal Triangle and Polokwane. The sizes of these properties vary from 40sq m to 80sq m.
The Banking Association of South Africa estimates that around 132 000 units a year need to be built in the R250 000 – R700 000 price bracket to keep up with demand. The company has enough land available to continue building for the next five years. CEO of RBA Housing, David Wentzel, says the company is hoping to bring a further 1 200 houses to the market next year.
Wentzel says that the demand is exceptional due to the good economic growth in South Africa, the sound fiscal policy, and urbanisation. He says that 95% of the buyers of their units are blacks who are entering the market for the first time, or who have bought previously, and now want to upgrade their properties.
The new National Credit Act stipulates that banks must check the overall credit exposure of any borrower before approving any new loan. Wentzel says that although the Act has delayed bond approval turnaround times, it has not deterred clients from purchasing property. He also believes that the new Act will have a positive influence on the affordable housing market because it prevents clients from taking up too much short-term credit.
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