Infrastructure Projects - CRSA

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MINISTERKUBAYIAND MECS

DELIBERATEONAPLANTOINTRODUCENEW ANDIMPROVEDFULLYSUBSIDIZED GOVERNMENTHOUSES

Plansareunder waytointrodu cenewandim provedgovern ment-subsidis edhomeswith

enhancedfeaturesincluding roo�opsolarpanels,bugler proofsforvulnerablegroups, andwaterandsanita�on systemsthatrespondtowater shortagesaffec�ngthecountry. Thereisalsoadiscussionthat thesizeofBNGhouseneedsto bereviewedfrom40square metersto45squaremeters.

Theseweresomeofthekey itemsdiscussedatamee�ng recentlyconvenedinDurbanby theMinisterofHuman Se�lementsMmamoloko Kubayi,togetherwithDeputy MinisterPamTshweteand a�endedbyMembersofthe Execu�veCommi�ees,Mayoral Commi�eesandresponsiblefor HumanSe�lements,aswellas representa�vesoftheSouth AfricanLocalGovernment Associa�on,amongstothers.

Therevisedspecifica�onsofa fullysubsidizedgovernmenthouse areaimedatimprovingthequality ofhouseholdlife,while contribu�ngtotheeconomy.In hisStateoftheNa�onAddress, PresidentCyrilRamaphosa pronouncedthatthegovernment wasforgingaheadwiththerollout ofsolarpanelstoaddressload shedding.Itisthereforeexpected thatthenewelementssuchas solarpanelsforBNGhouseswill resultineconomicopportuni�es, jobcrea�on,andskillstransferpar�cularly,foryouth,women, peoplewithdisabili�esand militaryveterans.

Thus,MINMECdirectedofficialsto workwithallaffectedstructures includingtheDepartmentof MineralResourcesandEnergy (DMRE),par�cularlyonsolar panels,tofinalisespecifica�ons includingdetailedfinancial implica�onsoftheproposed changes.Thiswillenablethe implementa�onoftheimproved housingunitsassoonaspossible.

QualityHousingProjects-KZN

MINMECalsoreceivedprogress reportsongrantsperformancefor thethirdquarterofthecurrent financialyearandconsideredthe overallperformanceofthesector, withacommitmenttourgently makenecessaryinterven�onsthat wouldensurealltargetsaremet andon�me.Thisincludedafocus on“missingmiddleinterven�ons toenableaffordablefirst-�me homeownership,alongside emergencyhousinginterven�ons foraffectedprovincesnamely, KwaZuluNatal,EasternCape, Gauteng,WesternCape,North West,Mpumalanga,andLimpopo.

PriortotheMINMECmee�ng MinisterandMECsvisitedseveral sitesthatarebeingusedto accommodatefloodvic�ms.They wereinformedthatKwaZulu-Natal Provincehasassistedall2022 floodvic�msthroughthe construc�onof1755Temporary HousingUnitsandthe implementa�onoftheRental AssistanceSchemeand Transi�onalEmergencyHousing. Theprovinceisalsowell underwaytofindapermanent housingsolu�onfortheaffected vic�ms.Thehousingprojectto accommodatefloodvic�msis expectedtocommenceinJune 2023.

“Sincelastyear,wehavelearned manylessonsandweareseeing progress.Wehaveaccommodated affectedhouseholdsfrom dehumanizinghallstobe�er accommoda�onfacili�es.Families nowenjoyprivacy.Wehavesince startedfocusingonlong-term interven�ons”,saidMinister Kubayi.

MinisterKubayiemphasisedthe importanceofallspheresof governmentandallaffected stakeholderstocon�nuouslywork asateamtoacceleratethe deliveryofsustainablehuman se�lements.Shehoweverraised concernsabouttheresources whichareo�endivertedto providesecurityasopposedto buildinghouses.

“Iwanttoappealtocommuni�es tounderstandthattheseprojects belongtothemandaremeantto respondtotheirhousingneeds. Invasionofprojectsandstopping themdoesnothelp.Thisdelays progressandul�matelyprolongs the�meofpeoplelivingin temporaryshelters”,saidMinister Kubayi.

Inherinterview,theministersaid, peopleweremovedintermsof 2010worldcupbuildingofthe stadiums,partoftheissuesthat wereraisedwhenshecametothe po�oliowasthattherehasbeen peoplesea�nginLindelatransit capmshavingwaitedforyearsfor theiralloca�onandtobemoved accordingly.

Westartedhavingan engagement withtheprovincetopushforthe fast-tracking of the implementa�on andresolu�onsothatthose peoplecanmoveoutofthose transitcamps.

Ithinkitsgoodtoshowcasewhat wearedoingashuman se�lement,becausemanypeople seethatandraiseconcesusabout lackofprogressandslowpace andthisisoneoftheareaswhere starttopushintermsofinterest.

IjustwanttoappealtoSouth Africanstounderstandthatthe workthatwedoisnotforus,its forthem.Nowinvaisionof projectsandstopingthemdoesn't helpsouthAfricans,takingovera projectoraunitthatdoesnot belongtoyou,doesnothelpus. Butthelastpoint,wedon'twant tohearpeoplesellingthisunits, wedon'twantthemtocomehere rentouthereorwearegoingto demolishweretheyare,both municipalityandtheprovince havecommi�ed,wedon'twantto seepeopledoubledeepingcourse thatspartofsomeofthe problemswe'vehave.

Partofthewhatweagreedas MINMECisthatwegoingtovisit provincesandseewhatis happeninginthermsofvarious work.

Oura�en�oninKZNisondisaster asyouknowthatlastyearwehad hugedisasterandalotofwork.So therearelotofworkandthere lessonslearnedoutofthe process.Anpartofbeinghere todayisthatoneyeardownthe line,peoplewillaskwhathave youdoneasgovernment-thisis whatwehavedone.

BalwinProper�es, SA’s specialistresiden�alproperty developer,launchedMunyaka,aR10bn lifestyleestatedevelopmentatWaterfallCity precinctinMidrandonWednesdaytomeet demandforlock-up-and-goandsecure living.

ThecompanyinvestedmorethanR100min infrastructureinthenode,includingthe upgradeofMiaRoad.

Announcedin2020,Munyaka,comprising morethan5,000apartments,willbe completedin2028.ItisBalwin’sthird developmentinWaterfallCity.

PresidentCyrilRamaphosa attheLaunchofMUNYAKAWATERFALL-BalwinProper�es

WomeninConstruc�on ThatoMokhothu

Whatmakesyouchoosethe careerinconstruc�onseeingthat itsamaledominantindustry. Ilovetakingtheleadinbreaking intoindustriesknowntobemale dominated.Thefactthatthe environmentisnotidealfor womenignitesacertainpassionin metofindand/orcreate pla�ormsforwomen.Ibelievein se�nganexamplebyfirstgoing outtheretodotheactualwork, sothatwhenIgoontoinspire othersorleadothersIdosofrom livedexperienceandprovenvalue tomywork.Ialsobelievethat maledominatedindustries presenttheperfectopportunity forwomentojoinandfinda sweetspotforthemselves.I believemyexperienceismeantto carveawayforwomenandyouth toalsotapintotheindustries. WhatthismonthofMarchmeans toyouandtootherwomenwho areinbusiness.

ThemonthofMarchbringsus Interna�onalWomen'sday celebra�ons,whichIbelieve presentaperfectopportunityfor womentocollec�velystand togetherandworktogetherjusta li�lehardertomeetthe #genderequitythemesetbythe UnitedNa�ons.Ibelieveevery womanshouldlookintoac�vely playingaposi�veroleor

contribu�ontowardstheen�re

Yes,agoodstar�ngpointisfor womentoac�velyworktogether andtoimplementastrategythat willmonitortheState’s compliancewiththePresident’s 40%procurementalloca�onthat ismeanttoreachwomenandto givethemaccesstoeconomic opportuni�es.Ipersonallyhave notseenthe40%,Ilookforward toworkingwithotherwomenon ac�velyfindingour40%sharesin allprojects.

BuilderslaunchesBuildersPRO benefitsprogrammetoboost tradespeople'sbusinesses

MoreSouth Africansare feelingthe pinchofthe risingcostof

living,includingthecountry’s smallandmedium-sized businesses.Accordingto Businesspartners’SMEIndex, unfavourableeconomic

condi�ons,exacerbatedby loadshedding,petrolpricehikes, andCOVID-19'slingeringeffects, contributetolowbusiness confidenceamongthecountry’s SMEs.

Tohelpaddressthese challenges,Builders,theleading homeimprovement,DIY,and buildingmaterialsretailer,has

introducedtheBuildersPRO benefitsprogrammetohelp tradespeople(plumbers, electricians,carpentersetc.) navigatethecountry’s increasinglychallenging economiccondi�ons.

Theprogrammeoffers tradespeoplesavings-related benefitssuchasincredible deals,andpersonalisedoffers onDIYproductsandservices, fromconstruc�ontogardening andevenmaintenanceprojects, tailoredtotheirbusinessesand, mostimportantly,their customers’needs.

BuildersPROcustomerswillbe thefirsttoknowaboutnew launches,havetheop�onofa virtualorphysicalcardandmost importantly,getmoneybackas arebateonallcashpurchases allowingthemtosavewhile ge�ngmoreworkdone.

TheBuildersProcarden�tles cashtradecustomerstoa rebatea�erspendingR50000 ormoreincashexcludingVAT, withinaspecified12-month perioddetermineduponsignup.Forexample,iftheperiodis 26December2022to31

December2023,therebatewill bepaidintothecustomer’s BuildersProprofileattheendof February2023.

TradesmenwhospendoverR50 000within12monthsthrough theBuildersPROprogramme willqualifytohavetheirrebates alignedtothestockcategory theypurchasedduringthe period.Stockcategories qualifyingfortherebates include:

•Stockcategory1:Allstock purchasesexcludingcategory2 purchasesreceiverebatesfrom 3-5%basedontheamount spentover12months.

•Stockcategory2:Sand,stone, cement,concrete,steeland woodentrussesandtruss covering,allnon-stockbuyouts, promo�on,servicesand deliveriespaidfor.Category2 rebateswillbe2%againstthe amountspentover12months. Thesebenefitswillhelpmoreof thecountry’ssmallandmediumsizedbusinessesovercome challengessuchascashflow, accesstoqualitybuildingandDIY solu�ons,andhelptradesmen establishsustainablesmall businessesthatcanweather economicstorms.

stretchtheirpocketsandmake themostoutoftheireveryday purchases.Wewanttoensure thatouressen�altradespeople alsobenefitfromtheserewards assmallbusinessesare responsibleforthecountry's economicgrowthby contribu�ngtojobcrea�onthat sustainsmanySouthAfrican households."

Thepopularityofrewards programmesremainshigh amongSouthAfricans,whoturn tothemtohelpthemnavigate thischallengingeconomicperiod andstretchtheirpockets.

Marke�ngHeadatBuildersJanet Booysensays,“Werealisethat loyaltyprogrammesaremore crucialthanevertoSouth Africans,asmanyconsumers turntothemwhentheyneedto

The2022TruthandBrandMapp

thisdependence,revealingthat 73%ofSouthAfricansuseloyalty programmesconsistently.

LoyaltyWhitepaperhighlights

ConstructionProjects-Tools

BuildingFormular

BuilderssaysitsPRO programmewillallowSMEsto alsoreaptherewardsofa benefitsprogrammethatcan alleviatesomeofthedifficul�es theirbusinessesface.

“Thecountry’s tradespeoplehave unlimitedpoten�al toalleviateSouth Africa’schallenges, includingthejob crisis,whichiswhy we’resoinvestedin thissector’ssurvival andrecovery followingthe impactofthe pandemic.In addi�ontothe benefitsour programmewillofferthese customers,wealsohopethat findingnewwaystosupportthis

sectorwillencouragemore SouthAfricanstopursuea careerinthisfieldandpluginto theskillsgapinthemarket,” addsBooysen..

publishedlistofhigh-demand occupa�ons,thecountry con�nuestoexperiencea scarcityofindividualstrained andqualifiedtomeetthe

demandfor crucial ar�sanaljobs suchas plumbers, electricians, andbuilders.

Thelist highlights howthese ar�san-based businesses, whichserve homeowners, havedifferent

AccordingtoSouthAfrica’s DepartmentofHigherEduca�on andTraining’srecently

developmentneedstoother industriesandrequireincreased focustoenablethissegment’s growth.

BuildersPROcustomerscanusetheircardatanystoreandlinkittotheironlineprofiletotracktherebate.

RoadAgencyLimpopo Togetherforbet�erroads

InfrastructureProjects

RALProject-RoadP134/1

(Oneofthe18CompletedRoadProjects)

Ittook6monthstorehabilitate roadP134/1inthisfinancial year.Thisroadconnectsfarms, businesses,andminingareasto thetownofMookgophong, therebycontribu�ngtothe economicdevelopmentofthe province.

Therehabilita�onofroad P134/1includedtherecycling andstabilisingtheexis�ngbase andsubbase,reconstruc�onof exis�ngpavementlayersand cleaningofexis�ngculverts.

Therehabilita�onofroad P134/1benefitedcommunity membersinnumerousways suchasprovisionofadust-free road,improvedaccessfor communi�esandlowervehicle opera�ngcosts.

RoadAgencyLimpopo

RALsignMoU

Witheight(8) Municipali�es

Onthe17March 2023,RAL, conducteda briefingsession withcontractors followingthesigningofa MemorandumofAgreement (MoA)byRAL,inpartnership withlocalmunicipali�es,for fixingdilapidatedroadsinthe eightmunicipali�espartytothe MoA.Roadinfrastructure developmentinthese municipali�eswillneverbethe sameagain!

Thesessionincludedthe LimpopoDepartmentofPublic Works,RoadsandInfrastructure HeadsofDistricts,andRoads AgencyLimpopo(RAL)Senior Managerswhometwith21 appointedcontractorstodo rou�neroadmaintenanceand re-gravellingacrossthe province.

RAListarge�ngtopatchabout 160000squaremetresof potholesandtore-gravelroads atanes�matedbudgetofR260 million.

TheRAL-Municipalityini�a�ve comesatapointwherethe recentrainshavele�roadsin variousMunicipality jurisdic�onsinadirestate.

Thepartnershipwillhelpthese municipali�estoaddressthe damagecausedandwillthus enablemobilityofresidents.

Commen�ngontheini�a�ve, Hon.MECforLimpopo DepartmentofPublicWorks, RoadsandInfrastructure,Mme NkakarengRakgoalesaid“This ini�a�vewillbringrelieftoroad users,becausethesecontractors willextendtheirpothole patchingexecu�ontocity centres,townshipsoflocal municipali�es,andiden�fied gravelroadsleadingtovillages toenablesmoothaccessfor trafficandpedestrians.”

RALGeneralManager: Opera�ons,MrMar�n Ramaboea,duringthe presenta�onoftheRALMunicipalroadinfrastructure rou�nemaintenancesession, remarkedthatcommuni�esare inneedofimprovedroadsfor easeofmobilityandaccess, “henceweneedthis programmetobefast-tracked”. Inhisac�onplan,MrRamaboea sharedthatRALProject Managers,Contractorsand Municipalofficialswilljointly iden�fyareasofprioritywhich willbenefitfromthis interven�on.

Speakingonquality,Mr RamaboeamaintainedthatRAL willbestrictandwillnotallow poorworkmanshiptospoilthe poten�albenefitsofthe ini�a�ve.Hesaidaspartof enforcingthis,contractorswill begivenaone-yeardefects liabilityperiodwhereapor�on oftheirmoneywillberetained, incaseofanydefects.

Thesessionincludedexpertsin patchingpotholeswho presentedontheirexper�se andservicesandhowtheywill ensurequalityexecu�oninall theprojectstheyareinvolved in.MrDhirenMehta,from Jetpatcherhighlightedthatthey usethestate-of-the-art equipmentthathasarecord speedinpotholepatching.

MrMutshutshuNxumaloalso presentedfromPro-Phaltwhere asimilarmethodtoJetpatcheris used.Theymadean undertakingthatalthoughhighendtechnologyisdeployedin theirmethods,theydooffer Africancentredsolu�onsthat seektoalsotrainlocalsonthe requiredskills,toworkwith them

Theeightmunicipali�esinclude: Ba-Phalaborwa,Fetakgomo-Tubatse, CollinsChabane,EliasMotsoaledi, Bela-Bela,Polokwane,Musina,and MakhadoLocalMunicipali�esaspart oftheDistrictDevelopmentModel

CosentinolaunchesDekton®

PietraKode,designedbyDaniel Germani

InspiredbyItalianarchitecturewithaneyetothefuture,thecollec�onreimaginesclassicstonesin contemporarybeautywiththehighperformanceofDekton®

heCosen�noGroup, thegloballeaderin producingand distribu�ng

innova�veandsustainable surfacesforarchitectureand design,introducesanewhighperformance,

ultra-compactstonecollec�on: Dekton®PietraKode,thevision ofrenowneddesignerand architectDanielGermani.

PietraKodereinterpretsthe �melessbeautyof threeclassic Italianstones:Vicenza,

Traver�neandCeppodiGré. Eachofthesean�quenatural stonesisdecodedandthen recodedwithinthreeDekton® concreteseries,enhancingtheir proper�esandthemany possibili�esfortheirusein architectureanddesign.

Cosentino-Design

Eachcolourbreathes contemporaryeleganceintothe design,withtherichshadesand texturescrea�ngasensory experiencebeyondwhattheeye cansee.Thecarbon-neutral Dekton®surfaceallowsthe collec�ontobeusedfora virtuallylimitlessrangeof indoorandoutdoor applica�ons.

PietraKodemarksthethird collec�ondevelopedby Dekton®withdesignerand architectDanielGermani.While Germani’spreviousIndustrial andChromicacollec�onsforthe brandhaveo�enhadan industrialbent, thesevenhues thatmakeupPietraKode channeltheinfluenceof Vicenza,Traver�neandthe iconicCeppodiGré stoneon Italianarchitectureoverthe centuries.

‘Forthiscollec�on,Ispentalot of�medecodingeachstone’s historyinItalianarchitecture, andreimaginedthemina contemporarydesignwithall thebenefitsofDekton,’says Germani.‘PietraKodeisa collec�onthatshowcasesluxury inthesmall,understateddetails. It’sdesignedwiththefuturein mindandcomplementsany spaceinawaythatwon’tgoout ofstyle.’

THEVICENZAKODESERIES consistsoffourwarmand versa�lecoloursthatreinterpret thecodeofclassicVicenza stone.Withneutraltones reminiscentoftheearthand

richdesignthatflowstothe edges,allcoexistinperfect harmonyandcomplement cream,woodandtaupe pale�es.

VK01Nebbia isinspiredbythe textureofGrigioAlpi,witha fine-grainedcreamywhitebase do�edwithwarmtaupehues.

VK02Avorio featuresalight beigeshadeinanextremely naturalfinishinspiredbythe eponymousAvoriostone,an Italianmaterialcharacterisedby thepresenceoffossilshells.

VK03Grigio boastsagreycolour schemeandwarmnuances. Drawingitsinspira�onfrom GrigioAlpi,madepopularbythe RenaissancearchitectAndrea

Palladioinhisvillasandpalaces intheVenetoregion,itblends perfectlywithcreams,woods andtaupecolours.

VK04Grafite combinesamixof blackandgreyinterspersedwith whi�shandreddishcloud-like patches,channellingthetexture ofdark,fine-grainedlimestone.

THETRAVERTINEKODESERIES recodesthestoneoutofwhich Romewasbuilt,intoanew technologicalvisionofthe materialthatmadeclassicalart shineandinspiredRenaissance architecture.Twoelegant designsarefullofnuances reminiscentofthequietmajesty ofclassicstyle.

TK05Sabbia reinterpretsItalian Traver�ne,cutwithaveininits threadthatflowsthroughthe piecesinahaphazardand colourfulway,makingitperfect forrus�cornatural environments.

Cosentino-Design

TK06Marmorio takesitscue fromTraver�noNavona,the quintessen�alRomanstone.Its porousstripedstructuregives anelegant,brightand lightweightlooktoanydesign.

THECEPPOKODESERIES reinterpretsthebeautyofthe CeppodiGréstone,o�enused inarchitectureinMilan,to.

designspacesthatinspireand connectwithnature.Like VicenzaKode,CeppoKode featuresdesignalongtheedges, makingitidealforrevealing applica�ons.

CK07Ceppo Thedis�nc�ve blue-greymul�formstructureof theCeppodiGréstoneinspires thisuniquecolour.Thepebbled

pa�ern,idealforbothindoors andoutdoors,isa�meless designthatmakesitaperfect choiceforaclassicormodern look.

PROPERTYINVESTMENT TRENDS&ANALYSES

ACOMPREHENSIVEOVERVIEWFOR2023

5FACTORSIMPACTINGTHECURRENTPROPERTYMARKETRIGHTNOW

Theproperty investmentworldis constantlyevolving, andstayingontopof thelatesttrendsand analysesisessen�alifyouwant tosucceedinthishighly compe��vemarket.

Inthisar�cle,weexplore5of themostimportanttrendsand analysestoconsiderifyouwant tomakeinformeddecisionsand stayaheadoftheproperty investmentgame.

AccordingtoLightstone's Residen�alPropertyIndex(end ofDecember2022),property prices'currentannualcapital growthis2.7%.Paul-RouxDe Kock(ChiefAnaly�csOfficerat Lightstone)saidthesethree scenariossuggestedthatHouse PriceInfla�on(HPI)inSAfor 2023wouldlikelycomein between0.9%(low)to2.3% (mid)or3.7%(high).

AccordingtotheTPNRental MonitorResiden�alSectorQ2 2022Report,residen�altenants ingoodstandinghaverecovered to82.2%,whichisatprepandemiclevels.Theupperto mid-levelbracketsrecorded theirbestgoodstandingever! Inourpreviousar�cle,5Ways toManageyourRentalProperty Por�olioBe�er,wediscusshow youcanbeattheaveragesof collec�onsandgoodstanding.

TherealGDPgrowthinSouth Africa(SA)was2.6%in2022, andtheIMFprojectsittobe 1.2%and1.3%in2023and 2024,respec�vely.

2. INFLATION

Sta�s�csSAshowsthatthe annualconsumerpriceinfla�on inSAdeclinedforthethird consecu�vemonthto6.9%in January2023comparedto7.2% inDecember2022.Thecurrent primeinterestrateinSAis 10.75%.Manyeconomists believethatinterestratesare nearingthetopbeforetheywill begintostabilise.

Interes�ngly,Lightstonealso saysthatcoastalproper�eshave performedbe�erthannoncoastalproper�esandthat proper�esvaluedatlessthan R250000andsecondly proper�esvaluedbetweenR250 000andR700000have outperformedtheothervalue bands.

TheLightstoneAreaValueBands Indexbelowreviewsinfla�onary ratesforpropertybasedonthe followingvalues:

Luxury:>R1.5mil;HighValue: R700ktoR1.5mil;MidValue: R250ktoR700k;LowValue: <R250k

5.RENTALESCALATIONS

AccordingtothePayPropRental IndexQ42022Report,growth hasreboundedimpressively overthelastfivequarterssince Q32021,whenwerecorded Year-on-Yeargrowthofjust 0.2%.Currently,rental escala�onsaresi�ngat3.4%.It hasnowrecoveredtoprepandemiclevels.

1. GROSSDOMESTICPRODUCT (GDP)

3. PROPERTYPRICEGROWTH

4. COLLECTIONSANDGOOD STANDING

PropertyDevelopment

KEYTAKEAWAYSFORPROPERTYINVESTORS

Aspropertyinvestors,wemust understandhowcertaintrends andeconomicfactorsimpact ourinvestments.Here'smytake onthecurrentpropertyforecast andeconomicoutlookandwhat itmeansforyourproperty investments.

Yourungearedreturnon propertyisyourcapitalgrowth andnetrentalyield,whichis currentlyaverydecentreturn. Rightnow,youraverage propertypricegrowthis±3%, andyouraveragenetrental yieldcanbe6%to8%.

Propertypricegrowthisalso con�nuingtorise,andIbelieve itcouldbesignificantlyhigherin thefuture.Herearemythree reasonswhy:

Averagepropertypricegrowth since2000is9.5%,whichis significantlyhigherthanthe 2.7%wearecurrently experiencing.Higherproperty pricegrowthisinourfuture!

Property'sinputcosts,including construc�onmaterials(suchas concrete,bricks,steel,etc.), construc�onworkerlabour costs,andlandprices,have increasedfasteroverthelast decadethanpropertyprices increased,whichcanalsolead tohigherfuturepropertyprice growth.

Rentalescala�ons,which determineyourrentalyieldson property,arealsohigherthan propertypricegrowthinSA. Thiscouldalsoleadtohigher propertypricegrowthinfuture.

Ourar�cle,BuildaSignificant PropertyPor�olioWith Ac�onableGoals,alsodiscusses howtobuildyourproperty por�olioconsistentlythrough economiccycles.

Despiteuncertain�esinthe propertyinvestmentsector,I s�llbelieveinthepowerand poten�alofproperty investment.Thereareendless opportuni�esforgrowthand success,andI,forone,intendto makethemostofthem!

GQEBERHABENEFICIARIES

GOVERNMENTSUBSIDISEDHOMES

TheMinisterof HumanSe�lements, MmamolokoKubayi andDeputyMinister PamTshwetewere

onThursdaythe16th March2023

handedovernewlybuiltfully subsidizedgovernmenthomesto qualifyingbeneficiaries,including theelderlyandwomenatthe

NelsonMandelaBay MetropolitanMunicipalityin Gqeberha.Over270houseswill behandedoveratPolarPark, KwaLangaTownshipin

Uithenhage,andQaqawuliin NewBrightonrespec�vely. Governmentseekstotransform householdlifeofthoselivingin informalse�lementsthrough

UpgradingProgramme(ISUP. ThisfinancialyearendingMarch 2023,governmentsetasideR4 billionfortheupgradingof informalse�lements.Inthenew financialyear2023/2024,the NelsonMandelaBayMetrowill beallocatedR300millionto improvethelivingcondi�onsof householdsininformal se�lements.

BuildingBetterHouses

Thehousingunitsthatwillbe handedoverarearesultofthe interven�onbytheNa�onal DepartmentofHuman Se�lementsWarRoom announcedbyMinisterKubayiin her2022/2023BudgetVote Speech.Sinceitsestablishment, theteamhashelpedtounblock numerousprojectsindifferent Provinces.

MinisterKubayiandDeputy MinisterTshwetewerejoinedby theMemberoftheMayoral Commi�eeforHuman Se�lementsinNelsonMandela bayMetro,CllrTukelaZumani.

EconomicImpactofBackrooms Inthetownships

Thoughbackrooms aren’tanew phenomenoninSA, usagehaschangedfrom mainlybeingafamily membertopaying tenants,enabling ownerstosupplement theirincomeasdemand outstripssupplyinsome loca�ons.

Withgrowing urbanisa�onandpeople movingtoci�estofind employment, backroomsremain,for many,themost accessibleand affordable accommoda�on.Such spaceinareaslike SowetoandCosmoCity thatareneareconomic hubsandpublic transportarehighly soughta�er.

growingdemandfor affordable accommoda�on, propertyownersare seeingpoten�altoearn incomefromrooms tradi�onallymeantfor familyuse,”Teko Motlhabi,founderand CEOofRoomsta BackyardRentalstold BusinessDay.

PicknPay

Distribu�onCentre

icknPayandpartnerFortress REITLimitedaredevelopinga newdistribu�oncentre, Eastport,in

GautengtoconsolidatetheJSElistedretailer’sLongmeadow distribu�oncentreandthree smallerfacili�es

Thedistribu�oncentre, scheduledforcomple�onin 2023,willcostaboutR2bn, includinglandandconstruc�on, withPicknPay’s60%share es�matedataboutR1.2bn.

PicknPayhassecuredlongtermfundingatacompe��ve interestratetofundthe purchase,itsaid.

“Thecompanyhavesuccessfully achievedcentralisa�onforthe mostpartinSA,butthe Longmeadowdistribu�oncentre isreachingitscapacity,”saidthe CEOPieterBoone.

“Generallyold townshipsandespecially wherethereiseconomic ac�vitythereare backrooms,andwith

Logis�cs-WarehouseFacili�es

Progressamidcommercialdecline

Demandforlogis�csand warehousingfacili�es,aswell asvacantindustriallandhas remainedhighinSAinthepast twoyears.

Vacanciesareatarecordlow withrentalgrowthreportedin someinstances,accordingto commercialpropertyservices company,Gale�Corporate RealEstate.

“Risingdemandandlowsupply oflogis�csandwarehousing facili�eswillcon�nue, par�cularlyinsought-a�er areasliketheWesternCape,” saidGale�CEOJohnJack

AntonyPage- Leadership& ChangeSpecialist (MindIP) avingbeen privileged enoughto spendmany yearsata

“strategic”levelinthecorporate world–mostlyfocusingon businessimprovementand turnarounds–I’veheardalot about“strategy”:whatitisand whatitisn’t.

Now,asIsituponmytractor,I amremindedthatstrategy evolvedfrommilitarywarfareto beadoptedbythecorporate worldasameansofcountering theinwardfocusonefficiency, promotedbytheprinciplesof scien�ficmanagement.

Thisfocus,withitsrootsinthe industrialrevolu�on,rewarded managersorleadersfor establishingstandardised processesandproceduresthat weretobe

Opera�onalExcellence isaStrategicImpera�ve Today

executedbytheworkers. Managerswererewarded forfocusingonthe present,notthefuture. Ironically,thisprinciple operatedundera disciplined,hierarchical structureofmanagerand worker,similartothe officer–trooprela�onship seeninmilitarystructures.

WhyOpera�onalExcellenceis FrownedUpon Leaderssoonworkedoutthat, tostayaheadofthe compe��on,ashi�towardsa moreforward-looking approachwasrequired–one thatfocusedonwhatand whensomethingshouldbe achieved,butnothow.

Thehow,a�erall,wasfirmly undercontrolusingthe principlesofscien�fic management.Strategic thinkingwasrewarded.Leaders requiredastrategicapproach paintedbyinnova�onand crea�vity.

Competencytestsiden�fied thestrategistsinthe organisa�onwithscoresof5 outof5,andopera�onal thinkers1outof5.

Thestrategicthinkerswhere promoted,trainedand nurtured;theopera�onal thinkerswerele�togetonwith it.Employeeswhofocusedon opera�onsorbelievedin approachingopera�onsina differentwaywerebranded “opera�onal”.

Indeed,somecorporates insistedthatstrategicdirec�on, astheydefinedit,hadtobe developedatthecorporate headoffice,whilethe opera�onsweretobemanaged attheopera�ngdivisionor businessunitlevel.Thislednot onlytoopera�onsmethodology becomingstagnantandarchaic, butalsotothepercep�onthat opera�onaltrainingand developmentwasapoorareato spendmoneyon.Combined withtheever-increasingdisjoint betweenthestrategicdivision andtheopera�ngunit,this couldhavedisastrouseffects–asI’vepersonallyobserved.

WeAreBecomingMore Inefficient!

Hereuponmytractor,Ican’t helpbutno�cehowopera�ons arebecomingmoreandmore inefficient.

Ijusthavetomen�onthe MedupiandKuseliPower Sta�ons,loadsheddingasa resultofpoormaintenance,and thepoor,inefficientservicefrom banksandmobile communica�onscompanies. EvenAppleisunableto manufactureitsownphone, havingtooutsourceits manufacturing,andnotfor cheapeither.

Strategy–CreateaProduc�ve andProfitableEnterprise

AndreaOvans,inhisar�cle “WhatisStrategy,Again?”said “Atafundamentallevel,all strategiesforPorterboildown totwoverybroadop�ons:Do whateveryoneelseisdoing(but spendlessmoneydoingit),or dosomethingnooneelsecan do.”

Hewentontosuggest“One couldperhapsusefullydivide thevastuniverseofsubsequent strategyideasintothosethat focuson:

•Doingsomethingnew.

• Buildingonwhatyoualreadydo.

•Reac�ngopportunis�callyto emergingpossibili�es.”

changingtechnologies, globaliza�on,andtheinexorably accelera�ngpaceofchange, thereremainendlesslyclever newwaystomakemoney,beat thecompe��on,andnudge

AdamSmith’sinvisiblehand towardtrulyproduc�veand profitableenterprises.”

ACulturalChangeIsRequired

Itbecomesclearthatabusiness opera�nginamaturesector needstobuildonwhatthey have,doingwhateveryoneelse isdoingbutspendingless moneydoingit,makingtheir businesstrulyproduc�veand profitable.Thesesectorssuch asAirlines,Construc�on, TourismanddareIsayit, Banking,tonamebutafew, needtofocusonOpera�onal Excellence,Con�nuous Improvement,Business Improvement,callitwhatyou will.Thistheywillachieveby developingandimplemen�nga strategythatdrivesacultural changeacrossthebusinesson itswaytobecomingthebest operator.

AViewfromMy Tractorsharesmy opiniononcertain issueswiththe hopesofusbe�er understandingand addressingthe sourceofthe problemspresentin ourturbulent environment.

Itis�me that improving the efficiency of opera�ons receives the strategic focusit deserves.

Tobeable todowhat youdo well.

SALIBRARYWEEK

FOCUS:PATERSONPARKLIBRARY

The20thofMarch markedthestartof SouthAfrican LibraryWeek,a celebra�onofour

acelebra�onofourintellectual andliteraryheritage.Ioperator. Thethemeforthisyearis

“Libraries:tellingpowerful stories.”

Librariesusethisannualevent tomarketservicestotheusers, thebroadercommunity,civil society,anddecision-makers.

TheCityofJohannesburgpublic libraryaimstoprovideworldclasslibraryandinforma�on servicesthatwillplayavitalrole inthelivesofalltheresidentsof theCityofJohannesburg.

Onerecentlydevelopedlibrary thatembodiesthisvisionisthe PatersonParkSportsand

Recrea�onfacilityimplemented bytheJohannesburg

DevelopmentAgency(JDA)on behalfoftheCityof Johannesburg.

AMODERNWAYOFFACILITATINGLEARNING

ThePatersonParkSportsand Recrea�onfacilityoffers learningfacilita�onthrougha state-of-the-artlibraryanda cra�centretofacilitatear�s�c expressionandgrowth.The communityusesthetheatrefor communityshows, presenta�onsandrecitals.

Thelibraryalignswiththecity’s priorityofanac�veand engagedci�zenryand showcasesnewdigital technologiesandservices.The libraryoffersvariousserviceslendingservices(printand online),referenceserviceand researchsupport,andstudy spaceandsupport.

Italsofacilitatesprogramme implementa�onsuchasreading developmentprogrammes, (homeworkassistance,story hours,holidayprogrammes), andeLearningprogrammes (digitalliteracyac�vi�es)forall agegroups.

Aselec�onpolicyforthepublic librariesoftheCityisofbasic importancetothelibrary services,bothforpresent servicesandfuturepoten�al. ThePatersonParkLibraryfulfils variouscommunity-centered roles:

Lending/useofbooksandother librarymaterialsaswellasto provideinforma�onpackages forschoolprojects.

Provisionofspaceandsea�ng forstudypurposesinrela�onto theavailablespaceinthelibrary.

Thelibraryalignswiththecity’s priorityofanac�veand engagedci�zenryand showcasesnewdigital technologiesandservices.The libraryoffersvariousserviceslendingservices(printand online),referenceserviceand researchsupport,andstudy spaceandsupport.

Remoteaccesstoanumberof electronicresourcessuchas eBooks.

Theintroduc�onofthe eLearningprogrammeisthekey driverinbridgingthedigital divideamongtheci�zensofthe City.Digitalliteracytraining affordslibraryuserstheability tousedigitalinforma�on sourcesconfidentlyand cri�cally,communica�ontools andnetworksforlearning, collabora�on,andcrea�on. Provisionofinforma�onin responsetoenquiries(reference andstudyservices-alsowith theassistanceoftheInternet thatisaccessibletothe librarian).

Informa�onLiteracyTrainingto improveinforma�onliteracy skillsoflibraryusersto recognizewhenandwhythey needinforma�onandtobeable tolocate,evaluateandusethe neededinforma�on.

Advice,assistance,andreader guidanceinrela�ontoresources andtheirusefulness.

Arranging,facilita�ng,and presen�ngtalks,lectures, exhibi�ons,andother informa�onalac�vi�es. Childrenservicestopromote readingandthefunoflibraries, suchasstorytelling.

Programmesthatpromote commemora�veevents,library week,holidayprogrammes, WorldBookDay,LiteracyDay.

AMASSIVE,DYNAMIC IMPLEMENTATIONPROCESSBY JDA

PatersonParkSportsand Recrea�onfacilityisanexample ofhowtheJDAhasbeen

instrumentalinimplemen�ng infrastructureforthecity, crea�ngsafespacesforyoung people,allowingyouth development,andprovidingan alterna�vetothetoxic environmentstheymay encounter.

Fromadevelopment perspec�ve,thePatersonPark projectallowedpeopletohave inputintothedevelopmentof theircommunity.Theplanning phaseoftheprojectsstartedin 2015andcon�nuedinto2016. Publicconsulta�onforthe facilitytookplacein2016.

TheJDAappointed the contractor –GVKSiya Zama,in May2019 tobuildthe Paterson ParkSports and Recrea�on Centre.In addi�onto thenew state-of-theartlibrary, thescopeof works includeda new mul�purpose sportscentre and administra�on building.

Themul�purposesportscentre elementofthefacilityincludesa full-sizesoccerfield,twosmaller

five-a-sidefields,twotennis courts,amul�-court,anda basketballcourt,withapavilion, offeringarangeofnew programmesandac�vi�es.In addi�on,theparkoffersan enclosedmul�-func�onalsports hallwithafullyequippedgym. Asecurityhouse,andgenerator, toensureop�malfunc�onality andthecrea�onofadequate, safe,andaccessibleadjacent parking.Construc�onworks reachedprac�calcomple�onin September2020.

BuildingBetterfortheFuture

FNBCommercialProperty financeproperty

January 2023Residential BuildingStatistics –Buildingplansgrowth declining sharplyasrising interestrates and recessionary economic conditionshit.

Januaryresidentialbuildingstatistics showed sharp year-on-year declineinnew planning activity, asrising interest ratesand recessionaryeconomicconditionstakeeffect.

Residentialbuildingplanspassed

TheStatsSAJanuary2023releaseofresiden�al buildingplanspassedshowedayear-on-yeardeclinein thenumberofunits’planspassed,tothetuneof65.38%,a�erapriormonth’sdeclineof-33.27%.

Monthlydatacanbevola�le,however,soweusea3monthmovingaverageforsmoothingpurposes.Forthe 3-monthstoJanuary2023,theyear-on-yearrateof decline,too,wassevereat-41.1%,followingonthe -22.16%declineforthe3monthstoDecember.

Residentialbuildings completed

More recently, residen�al building comple�ons have alsobegun todecline,fallingyear-on-year by -30.06% forthe 3monthstoJanuary2023.

Planspassedbysizecategory

When breakingthe numberof units’ planspassedup into the 3 building categoriesprovidedbyStatsSA,we see that for the 3 monthsto January it was the “Dwelling Houses smallerthan 80 squaremetres” categorythatshowedthefastest rate ofdeclinetothe tune of-59.2%year-on-year. Thesecondfastestrateof declinewaswitnessedinthe latsand Townhouses” categoryto the tune of -46.9%year-on-year.

A�erapost-2020lockdown“mini-recovery”.wehad beenexpec�ngaslowdowninresiden�albuilding ac�vityduetointerestratehikingthatcommencedlate in2021alongwithaslowingeconomyimpactedbyrate hiking,loadsheddingandslowingglobalgrowth. And,indeed,thisslowdownhasbeenmaterializingof late. Residen�al building plans passedreached a postlockdown higharound mid-2022, andbegan to fall therea�er.

Theslowest rateofyear-on-yeardeclinewasrecorded inthe“Dwelling HousesLargerthan80 squaremetres” categorytothe tuneof -16.2%. Thebreakdown suggeststhatweaknessis now more severein the affordable housingsegmentthan the moreaffluent markets,with muchof the “Dwelling Housessmaller than80squaremetres”segment believedtobeinthe AffordableHousing segment.

But it isthe other 2segments combined,(Flatsand Townhouses, andfree-standing homes larger than80 sq.m)thataretypically morecyclical,and actually say something aboutthebusinesscycle ofthecountry.So effec�ve are these segmentsasa leading business cycleindicator that they areincludedbytheSARBinits CompositeLeadingBusiness Cycle Indicator.

Andgrowth in planspassed in these 2 segments combined, i.e., building plans passedexcluding free-standing homessmaller than 80squaremetres, has slowedinto nega�veterritorytothetune of an extreme -67.78%year-on-year forJanuary,whilealsorecording a significant nega�verate of36.08%for the 3months to Januaryyear-on-year,whichis an accelerated rate of decline from prior months.

Outlook

Recently, Residen�al Building PlansPassedhave declinedsharply.

Webelievethisdiphasmuch todowiththecoolingoff of housing demanddueto interestrate hiking,along with slower household incomegrowthas aresultof a slowereconomicgrowthrate.

Inthefinalquarter of2022, quarter-on-quarter GDP (Gross Domes�cProduct) growth hadalready turned nega�ve, as itfaced numerous headwinds. These included the risinginterestrates,along with aslower globaleconomyandrecent sharpincrease in the level ofelectricityloadshedding.

We knowthat two ofthe 3 building categories’ plans passed data are useful leading business cycle indicators, sothis decline in plans passed comesas li�le surprise.

FNB’s economicforecastsincludeonefurther 25 basis pointinterestrate hikenextweek,before ratesstartto movesidewaysfortheremainderof theyear,alongwith aslower0.4% GDPgrowth rate for 2023, whichis significantlyslowerthan the 2%recordedfor2022.

Thissuggests thatthe more cyclicalpart of the Residen�al BuildingSector responded significantly to cyclical forces such asinterestrate movements and recessionaryeconomic condi�ons.

TheFlatsand Townhousescategory s�ll looks setto remain the largest new building category by a significant marginin2023, having increasedits share of the market massivelyoverthe yearsfrom 26% in 2010to 47%in 2022.

Suchan economicenvironmentisexpected tolead to a significantlyslower residen�albuildingyearin2023, comparedto2022,and declining building planspassed inrecent months pointstrongly inthatweakening direc�on.

RALProjectSummary-RoadP51/3

(Oneofthe18CompletedRoadProjects)

RoadP51/3fromGroblersdalto Sto�ergintheSekhukhune Districtwasinadirestatewith defectsthatincluded,amongst others,potholes,edgebreaks, sealcracks,basefailures, erosion,vegeta�ongrowthon theshouldersandloosestones. Thishadrenderedtheroad unsafeanduneconomicalto use.

.

Someofthebenefitsthat membersofthecommunity realisedasaresultofthe rehabilita�onofRoadP51/3,is havingshortenedtravel�me, employmentopportuni�es createdandimprovedaccessto governmentameni�es.

TheP51/3roadconstruc�on projectalsoempoweredlocal SMMEsthroughsub-contrac�ng opportuni�esandbusinessskills development.TheSMMEtarget wassettobe10%oftheoverall contractamount.

MECMotara conductedasite inspec�ontotheO.R. TamboInterna�onal AirportSpecial EconomicZone.Itis partoftheGauteng Industrial DevelopmentZone locatedinEkurhuleni. Thisisacataly�c projectunderthe auspicesofthe Departmentof Economic Development.The precinctcurrently houses7tenantsand willhave22atthe endofthe construc�onperiod. Theconstruc�on startedslowbut therehasbeengreat improvement.Weare preparingfora specialvisitofoneof thetenantsinthe comingdays. .