- Title
- The effect of integration of affordable/ low cost housing into urban areas on property values
- Creator
- Ngxwashula, Ntomboxolo
- Subject
- Housing -- South Africa
- Subject
- Urban poor -- Housing -- South Africa Real property -- Valuation -- South Africa Property
- Date Issued
- 2020
- Date
- 2020
- Type
- Thesis
- Type
- Masters
- Type
- MSc
- Identifier
- http://hdl.handle.net/10948/46838
- Identifier
- vital:39666
- Description
- In the recent years in South Africa after the apartheid era, the government has for the past 25 years been embarking on programmes and policy directives to address the past spatial injustices amongst other things that the apartheid government has left the country with. It is clear that some of the apartheid marks are still to this day evident and challenging to resolve. One of the priority government’s projects is to integrate communities without classifying areas with skin colour, income range etc. Since 1994 the government has developed a lot of legislation and policies in favour of spatial integration of low cost housing and affordable housing within the existing urban fabric. According to COGTA. (2016:22) urban areas in South Africa remain marked by profound social divisions, which stem from apartheid planning and, since 1994, have been reinforced by the uneven growth in land values and limited access by the poor to resources. The growth of the black middle class has resulted in more racial mixing in the (previously predominantly white and middle-class) suburbs, however, very little in working-class and poor areas. Furthermore it is argued that the property and land use status quo undermines access to urban opportunity and reinforces the highly inefficient urban sprawl that is characteristic of South Africa’s urban areas. There has been no substantial land reform and restitution, especially in urban areas, in part because of the importance of the formal property market, which increased significantly between 1994 and 2014. While this growth is essential to the health of rates income for municipalities, it has not addressed the issue of well-located, affordable housing and decent shelter for all. Spatial Integration has been implemented in some parts of the country, however it is evident that there is some resistance towards the concept of spatial integration and the most referred to reason for the resistance is that the integration of low cost or social housing into high income areas will decrease the property values of the existing properties in urban areas. This research aims to study and investigate if property values are affected by the inclusion of low cost housing in existing urban areas and further investigate why there is still resistance to the concept of integration and address any underpinning reasons and provide recommendations. In this study the related literature was reviewed and an empirical study was conducted. The empirical study was conducted using a combination of qualitative and quantitative approaches, referred to as Mixed Method. The research involved the use of questionnaires (Multiple Choice questions and Likert Scale format type of questions), semi-structured interviews and observation done by the researcher. The findings suggest that the following variables influence the resistance towards spatial integration of affordable/low cost housing into urban areas: Increased crime rate, Negative impact on property values, Clutch of different cultures, NIMBY Syndrome (Not in my Backyard), and Aesthetics of low cost/ social housing. The findings of this research may be used for a further research for a doctoral research investigating, more comprehensive detail, each of the identified variables in the perceived resistance towards spatial integration into urban areas framework which is apparent in the review of the related literature. In accordance with the results of this study and the testing of the objectives and sub questions, all variables have a positive influence on the perceived effect of spatial integration onto urban areas. Equally, some of the variables are not perceived to have a direct but an indirect relationship with spatial integration. The results of this research confirms this research questions and reveals two important things that, the concept of spatial integration into existing suburbia does have a negative effect on existing middle to high income properties in proximity to the social houses. Secondly the results reveal that concept of spatial integration of social housing into existing suburbia areas does positively affect the property values of the social housing. According to the definition of Property value which refers to the worth of a piece of real estate based on the price that a buyer and seller agree upon, furthermore the value of a property converges at the point where the forces of supply meet the forces of demand. In other words, the value of a property at any given time is determined by what the market will bear. Through this study it has been discovered that although property valuations for residential properties are conducted by means of a Comparative Method, which basically compares similar properties, it is however evident through this research that demand for properties located in areas where spatial integration has been implemented is very low, which leads to property owners desperately reducing their prices just to sell. Therefore this research concludes that spatial integration does have an impact on property values, though it is not a determining factor in the calculation of property value, it has an indirect impact. This study contributed to the South African property development body of knowledge, by determining the factors influencing the continued resistance towards Spatial Integration of affordable/low income housing into existing urban areas on property values.
- Format
- xiii, 90 leaves
- Format
- Publisher
- Nelson Mandela University
- Publisher
- Faculty of Engineering, the Built Environment and Technology
- Language
- English
- Rights
- Nelson Mandela University
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| Thumbnail | File | Description | Size | Format | |||
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| View Details Download | SOURCE1 | Ngxwashula, N 217809235 Treatise April 2020.pdf | 2 MB | Adobe Acrobat PDF | View Details Download |