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• Investment in the Province’s largest townships such as Mitchell’s Plain, which has an
approximate population of one million. This, and similar areas, are where demand
far exceeds supply. A partnership between potential investors and property
developers can help to catalyse affordable and social housing developments at
key development nodes in the province. Investment opportunities in underserviced
areas are widely available.
• Building of private-public partnership (PPP). From modelling demand for residential
property, it is clear that the state cannot continue to be the chief provider of low-
income gap-housing. Generally, building these partnerships will require a clear
communication of the roles of stakeholders in meeting the objectives of integrated,
sustainable human settlements.
• Investing in new models around affordability to capture the low income market and
ways to mitigate the risk of default on financing for the gap-housing market, given
households’ high levels of indebtedness.
• Exploring an Investor Partnership Fund to assist housing developers with equity-type
loans, which enhances the bankability of projects to enable senior lenders to access
finance on favourable terms.
• By improving the levels of employment in these income groups will in turn impact
the level of need, type of housing and government support required.

A frustration often voiced is that affordable markets are difficult to understand. We
believe that more investment would be made available if there were a clearer sense
of where opportunity might exist, not only for developers, builders and brokers, but also
for city planners, housing advocates and residents. Understanding affordable housing
markets more fully can expand housing opportunities, especially for the province’s
lower income residents. PROVINCIAL OUTLOOK NATIONAL OUTLOOK GLOBAL OUTLOOK GAP HOUSING INVESTOR NARRATIVE SPOT THE OPPORTUNITY PORTFOLIO INSIGHTS KHULISA NEWSLETTER ELECTRIC VEHICLES ENERGY SECURITY LOOKING AT GDP

Year-on-year residential activity levels have declined recently, as one would expect
in this credit-dependent residential market when interest rates are rising. However,
the availability of gap-housing depends on factors affecting accessibility, supply and
affordability.
Managing the gap market is without a doubt an imperative, because it not only
affects the current generation, but also future ones. The affordable housing market
should be an area that the state and investors should look to grow, because numerous
opportunities await those willing to commit to it.

QUARTERLY ECONOMIC BULLETIN 2016 73