The effect of integration of affordable/ low cost housing into urban areas on property values
- Authors: Ngxwashula, Ntomboxolo
- Date: 2020
- Subjects: Housing -- South Africa , Urban poor -- Housing -- South Africa Real property -- Valuation -- South Africa Property
- Language: English
- Type: Thesis , Masters , MSc
- Identifier: http://hdl.handle.net/10948/46838 , 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.
- Full Text:
- Date Issued: 2020
- Authors: Ngxwashula, Ntomboxolo
- Date: 2020
- Subjects: Housing -- South Africa , Urban poor -- Housing -- South Africa Real property -- Valuation -- South Africa Property
- Language: English
- Type: Thesis , Masters , MSc
- Identifier: http://hdl.handle.net/10948/46838 , 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.
- Full Text:
- Date Issued: 2020
The challenges of banks in financing SMEs in Harare, Zimbabwe
- Authors: Msimanga, Dumisile
- Date: 2017
- Subjects: Small business -- Finance , Business enterprises -- Zimbabwe -- Harare -- Finance Credit -- Zimbabwe -- Harare Entrepreneurship -- Zimbabwe -- Harare
- Language: English
- Type: Thesis , Masters , MPhil
- Identifier: http://hdl.handle.net/10948/14058 , vital:27412
- Description: This research is a diagnosis of the supply side of SME (small and medium enterprises) credit. Its objectives are to determine the current level of bank lending to SMEs to validate the financing gap, to explore the strategies and mechanisms employed by banks to provide tailor-made lending for SMEs and finally to conclude by identifying some of the key challenges the banks face in their quest to lend to SMEs. This, then, culminated in some recommendations for increasing bank funding to SMEs. This study employed a deductive qualitative research.. The research used a non-probability, purposive/judgmental sampling method to choose the heads of bank SME units to include in the research. There are twelve banks with dedicated SME units, out of a total of 18. The researcher carried out in-depth face to face interviews using semi-structured questions. The qualitative data was coded, deductively analysed and conclusions drawn and incorporated into a report. Banks’ most outstanding challenges in dealing with SMEs in terms of information asymmetry, an unsupportive business environment, poor quality of SME clients and inflexible regulatory requirements.
- Full Text:
- Date Issued: 2017
- Authors: Msimanga, Dumisile
- Date: 2017
- Subjects: Small business -- Finance , Business enterprises -- Zimbabwe -- Harare -- Finance Credit -- Zimbabwe -- Harare Entrepreneurship -- Zimbabwe -- Harare
- Language: English
- Type: Thesis , Masters , MPhil
- Identifier: http://hdl.handle.net/10948/14058 , vital:27412
- Description: This research is a diagnosis of the supply side of SME (small and medium enterprises) credit. Its objectives are to determine the current level of bank lending to SMEs to validate the financing gap, to explore the strategies and mechanisms employed by banks to provide tailor-made lending for SMEs and finally to conclude by identifying some of the key challenges the banks face in their quest to lend to SMEs. This, then, culminated in some recommendations for increasing bank funding to SMEs. This study employed a deductive qualitative research.. The research used a non-probability, purposive/judgmental sampling method to choose the heads of bank SME units to include in the research. There are twelve banks with dedicated SME units, out of a total of 18. The researcher carried out in-depth face to face interviews using semi-structured questions. The qualitative data was coded, deductively analysed and conclusions drawn and incorporated into a report. Banks’ most outstanding challenges in dealing with SMEs in terms of information asymmetry, an unsupportive business environment, poor quality of SME clients and inflexible regulatory requirements.
- Full Text:
- Date Issued: 2017
The impact of the Mdantsane urban renewal programme on socio-economic development
- Authors: Ngxata, Thabile
- Date: 2016
- Subjects: Urban renewal -- South Africa -- Buffalo City Economic development -- South Africa -- Buffalo City Sustainable development -- South Africa -- Buffalo City
- Language: English
- Type: Thesis , Masters , MA
- Identifier: http://hdl.handle.net/10948/12593 , vital:27097
- Description: Urban Renewal which originates in the concept of Local Economic Development (LED) has in recent years gained much global acceptance as a strategy to improve certain areas that are poorly developed in order to improve the quality of lives of the local residents. South Africa have adopted the Urban Renewal approach and ever since, a number of national centres have been targeted for urban renewal activities. The Buffalo City Municipality (BCMM) implemented the Mdanstane Urban Renewal Programme (MURP) which is essentially the case study of this research. Despite the government instituting the Integrated Development Planning (IDP), Buffalo City still remains one of South Africa’s poorest metropolitan areas, with a relatively high unemployment and crime rate compared to other metropolitan cities in the country (Buffalo City Metropolitan Municipality,2012). The study, therefore, sought to empirically analyse the effectiveness of the URP as an initiative of Integrated Development Planning (IDP) particularly on how it has addressed socio-economic pathologies such as poverty and inequality rampant in the area of study. The Mdantsane Urban Renewal Programme was used to monitor and evaluate the impact it had on the communities and the municipality. The study used a mixed methods or triangulation approach as both qualitative and quantitative techniques were used in determining the effect of the MURP on local development as well as in exploring the different perceptions and challenges facing the programme. The data that was gathered was analysed both quantitatively using frequency tables and graphs, and qualitatively based on the key themes that emerged. The research established that whilst the MURP has scored some gains in refurbishing the area of study, there are still various challenges inherent in the MURP such as its non-inclusiveness, lack of transparency, accountability and the lack of real benefits accruing in the local communities. Thus, this research recognised a need for a more inclusive and pro-poor urban development framework that promotes local citizen participation, accountability, sustainability and equity in resource distribution and allocation, in order to improve the livehoods of the local people in Mdantsane.
- Full Text:
- Date Issued: 2016
- Authors: Ngxata, Thabile
- Date: 2016
- Subjects: Urban renewal -- South Africa -- Buffalo City Economic development -- South Africa -- Buffalo City Sustainable development -- South Africa -- Buffalo City
- Language: English
- Type: Thesis , Masters , MA
- Identifier: http://hdl.handle.net/10948/12593 , vital:27097
- Description: Urban Renewal which originates in the concept of Local Economic Development (LED) has in recent years gained much global acceptance as a strategy to improve certain areas that are poorly developed in order to improve the quality of lives of the local residents. South Africa have adopted the Urban Renewal approach and ever since, a number of national centres have been targeted for urban renewal activities. The Buffalo City Municipality (BCMM) implemented the Mdanstane Urban Renewal Programme (MURP) which is essentially the case study of this research. Despite the government instituting the Integrated Development Planning (IDP), Buffalo City still remains one of South Africa’s poorest metropolitan areas, with a relatively high unemployment and crime rate compared to other metropolitan cities in the country (Buffalo City Metropolitan Municipality,2012). The study, therefore, sought to empirically analyse the effectiveness of the URP as an initiative of Integrated Development Planning (IDP) particularly on how it has addressed socio-economic pathologies such as poverty and inequality rampant in the area of study. The Mdantsane Urban Renewal Programme was used to monitor and evaluate the impact it had on the communities and the municipality. The study used a mixed methods or triangulation approach as both qualitative and quantitative techniques were used in determining the effect of the MURP on local development as well as in exploring the different perceptions and challenges facing the programme. The data that was gathered was analysed both quantitatively using frequency tables and graphs, and qualitatively based on the key themes that emerged. The research established that whilst the MURP has scored some gains in refurbishing the area of study, there are still various challenges inherent in the MURP such as its non-inclusiveness, lack of transparency, accountability and the lack of real benefits accruing in the local communities. Thus, this research recognised a need for a more inclusive and pro-poor urban development framework that promotes local citizen participation, accountability, sustainability and equity in resource distribution and allocation, in order to improve the livehoods of the local people in Mdantsane.
- Full Text:
- Date Issued: 2016
Persepectives on market processes followed in setting South African water services tariffs
- Authors: Norden, Ryan Henri
- Date: 2012
- Subjects: Water-supply -- South Africa -- Costs , Water utilities -- Rates -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:9019 , http://hdl.handle.net/10948/d1018929
- Description: South Africa’s private sector and the practice of using market processes are often dismissed by the government as service providing options, because they increase costs and fail the poor population. There is some substance to the government’s position, given that there is a natural monopoly advantage in water service provision. Under these circumstances it could be expected that a single firm would emerge as dominant in the provision of these services to urban customers. Were this firm a private one, and unregulated, it could be expected to practice exploitative pricing, make excess profits, and undersupply waste water management service. A private firm would also not provide services to the poor unless their service was subsidised. However most of these deficiencies can be regulated (as shown in Chapter Four), and also occur under public sector provision (as shown in Chapter Five) Are the private sector failures sufficient reason to abandon the market and private sector as mechanisms to deliver water service in South Africa? This dissertation finds little use is made of market processes and the private sector in water service provision (Chapter One), despite there being legal provision for such involvement (Chapter Two). It also finds that public water service providers are not subject to competition policy and consumer protection provisions, whereas private sector providers would be (Chapter Three). The administration of questionnaires to municipalities and the Department of Water Affairs (DWA) show that the various water service providers often operate under unique circumstances, making it difficult to extrapolate management insights from one municipality to another (Chapter Six). A case study on Nelson Mandela Bay Municipal tariff setting reveals a mismatch between economic principle and policy practice, and suggests that economic principle plays a lesser role in the design of tariff structures than other factors (Chapter Seven). Given the problems that are occurring in public sector water service provision, the dissertation concludes the case for dismissing private sector or public utility models for water service delivery may be weaker than is believed by the South African government.
- Full Text:
- Date Issued: 2012
- Authors: Norden, Ryan Henri
- Date: 2012
- Subjects: Water-supply -- South Africa -- Costs , Water utilities -- Rates -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:9019 , http://hdl.handle.net/10948/d1018929
- Description: South Africa’s private sector and the practice of using market processes are often dismissed by the government as service providing options, because they increase costs and fail the poor population. There is some substance to the government’s position, given that there is a natural monopoly advantage in water service provision. Under these circumstances it could be expected that a single firm would emerge as dominant in the provision of these services to urban customers. Were this firm a private one, and unregulated, it could be expected to practice exploitative pricing, make excess profits, and undersupply waste water management service. A private firm would also not provide services to the poor unless their service was subsidised. However most of these deficiencies can be regulated (as shown in Chapter Four), and also occur under public sector provision (as shown in Chapter Five) Are the private sector failures sufficient reason to abandon the market and private sector as mechanisms to deliver water service in South Africa? This dissertation finds little use is made of market processes and the private sector in water service provision (Chapter One), despite there being legal provision for such involvement (Chapter Two). It also finds that public water service providers are not subject to competition policy and consumer protection provisions, whereas private sector providers would be (Chapter Three). The administration of questionnaires to municipalities and the Department of Water Affairs (DWA) show that the various water service providers often operate under unique circumstances, making it difficult to extrapolate management insights from one municipality to another (Chapter Six). A case study on Nelson Mandela Bay Municipal tariff setting reveals a mismatch between economic principle and policy practice, and suggests that economic principle plays a lesser role in the design of tariff structures than other factors (Chapter Seven). Given the problems that are occurring in public sector water service provision, the dissertation concludes the case for dismissing private sector or public utility models for water service delivery may be weaker than is believed by the South African government.
- Full Text:
- Date Issued: 2012
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