Disgruntled property developers in the Western Cape expressed disdain for the high standards in the formal property sector, while the same standards are not expected in the informal property sector in the province.
Large numbers of property experts and developers gathered at the Cape Town International Convention Centre for the Western Cape Property Development Forum’s 10th annual conference this week.
Forum chairperson, Deon van Zyl, gave an industry response address and said the Western Cape property sector is over-regulated and over-compliant.
“Now, the challenge is that there is no blueprint for local or regional governments to break the national mould. How does the province, and its municipalities, make the transition from economically-stifling policy and procedure to regulation that creates an investment-welcoming environment while still staying compliant?
“So, drilling down to the Western Cape, the question really is: how do we deal with the transition of being an over-regulated, over-compliant investment region towards finding instead the balance of still being compliant yet facilitative? How do we balance the see-saw between regulation and facilitation?” he said.
Delegates at the conference said that though they are pleased the informal property sectors in areas such as Dunoon are thriving, with property developers in the area making impressive developments, they feel that the government is not as strict and stern with the informal property sector in ensuring adherence to compliance.
Mayor Geordin Hill-Lewis agreed with these sentiments and expressed how the informal property sector needs to be governed by the same expectations and rules.
“The aim is not to drop the standards in the formal sector, but rather to raise those of the informal sector,” he said.
Hill-Lewis, who gave the keynote address at the conference, expressed dissatisfaction at the RDP system/ BNG housing system, stating that the two divide citizens into the division created by apartheid.
Hill-Lewis called for investment in micro-development and small-scale rentals and pledged the City’s commitment to develop infrastructure in the City.
“The City of Cape Town has a R22 billion three-year capital budget for infrastructure development. This is the highest budget allocation among all the other metros.
“The Western Cape not only recently saw a 33.2% increase in building plans passed between January and June 2022 but, for the first time, it also overtook Gauteng in value and percentage.
“The recent release of the City’s ‘Infrastructure Support’ sets out the City of Cape Town’s ambitious infrastructure delivery plans over the next 10 years,” he said.
Premier Alan Winde who was not physically present at the conference expressed in his written remarks that the conference had a special place in his heart.
“The conference is driving investment in the Western Cape in order to provide our residents with jobs, worth and prosperity. This is the foundation of our economy. The infrastructure and property developments enabled through this foundation provide the spaces in which economic growth can thrive,” he said.