Johannesburg - South Africans planning to buy units in new housing developments are going to be forced to accept the poor as neighbours in terms of a draft government policy.
This is the purpose of the new policy of "inclusive" housing which is being discussed with players in the building industry.
The new policy, which is still only in proposal form and was presented for the first time to the South African Property Owners Association (Sapoa) a month ago, has sent shockwaves through the developers sector.
Developers said the proposed policy regulations were not only unachievable and ill-considered, but would bring the residential building industry to its knees.
Jo Pelser, chief executive of Sable Homes, one of South Africa's biggest developers, said: "Nobody would be willing to buy units in such developments."
R50 000 houses
This would lead in turn to a shortage of houses in established areas, which could cause a price explosion for existing houses.
In terms of the policy, developers would have to put aside 30% of the value of each development for low-cost housing (Read More...)
By: David van Rooyen
www.fin24.co.za
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