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Course Title

:

Properties 1

Module Title

:

Town-planning Principles

Duration

:

1 Day

Objective

:

On successful completion of this course the student will be able to: (a) assemble planning data from a variety of sources; (b) interpret this data; (c) calculate certain ratios, with a view to answering questions that pertain to town planning in the valuation of property.


Town-Planning Principles Index Lesson 1

Page Introduction to town planning ..........................................................

1

1.1

Introduction ....................................................................................

2

1.2

Ancient cities ..................................................................................

2

1.3

Medieval cities ................................................................................

2

1.4

Pre-industrial cities ..........................................................................

3

1.5

Industrial cities ...............................................................................

3

1.6

The modern city ..............................................................................

3

1.7

Town planning as a discipline ...........................................................

4

1.8

The objectives of town planning .......................................................

5

1.9

Influence on land values ..................................................................

6

PLANNING AUTHORITIES ................................................................

7

2.1

The hierarchy of planning authorities .................................................

8

2.2

Central government..........................................................................

9

2.3

Provincial authorities .......................................................................

11

2.4

Local authorities ..............................................................................

12

LESSON 3 :

TOWN-PLANNING SCHEMES .............................................................

13

3.1

The scheme in general ....................................................................

15

3.2

Use zoning ......................................................................................

16

3.3

Floor area ratio (FAR)(bulk) .............................................................

19

3.4

Coverage, density and height ...........................................................

20

3.5

Parking and other controls ..............................................................

22

3.6

Relaxations, consent uses and amendment schemes ...........................

25

LESSON 2

:

:


LESSON 4 :

DEVELOPMENT AND GUIDE PLANS ...................................................

28

4.1

Policy plans and master plans ...........................................................

28

4.2

Guide plans ....................................................................................

29

4.3

Development plans ..........................................................................

31

LESSON 5

:

PRACTICAL SESSION .......................................................................

33

LESSON 6

:

TOWNSHIP ESTABLISHMENT ...........................................................

35

6.1

Overview ........................................................................................

36

6.2

Township establishment procedure ....................................................

36

6.3

Township design .............................................................................

36

6.4

Powerlines in townships ...................................................................

36

LESSON 7

:

TOWNSHIP DEVELOPMENT COSTS 41

7.1

The cost of land ...............................................................................

42

7.2

Holding costs ..................................................................................

43

7.3

Development costs

........................................................................

44

7.4

Influence on land value. ...................................................................

45

7.5

Valuation of pre-proclamation township land and proclaimed townships

46

SECTIONAL-TITLE AND TIME-SHARING SCHEMES ..............................

48

8.1

Sectional-title schemes .....................................................................

48

8.2

Section ...........................................................................................

48

8.3

Common property ............................................................................

48

8.4

The participation quota ....................................................................

49

8.5

The body corporate .........................................................................

49

8.6

The sectionability of buildings ..........................................................

49

8.7

Interpreting sectional plans...............................................................

50

8.8

Valuation of sections ........................................................................

51

8.9

The Property Time Sharing Control Act...............................................

51

8.10

Primary ownership ...........................................................................

51

8.11

Form of contract .............................................................................

52

8.12

Operation of time-sharing schemes ...................................................

52

8.13

Valuation of time-shared property......................................................

52

8.14

Effect on land value..........................................................................

53

LESSON 8

:


LESSON 9

SUBDIVISION .................................................................................

54

9.1

Definition .......................................................................................

55

9.2

Farms and farm portions .................................................................

55

9.3

Agricultural holdings ........................................................................

55

9.4

Subdivision of farm portions and agricultural holdings ........................

55

9.5

Subdivision of erven in townships .....................................................

56

9.6

Subdivision of industrial erven .........................................................

56

9.7

Survey and registration ..................................................................

56

9.8

Physical subdivisibility of land ...........................................................

57

9.9

Influence on land value ....................................................................

57

TOWN PLANNING AND VALUE ........................................................

58

10.1

Highest and best use .......................................................................

59

10.2

Development potential .....................................................................

59

10.3

Development potential and land valuation ..........................................

59

10.4

Checklist of information ...................................................................

60

10.5

Conclusions ....................................................................................

61

LESSON 10

:

:


LESSON

:

1

TITLE

:

INTRODUCTION TO TOWN-PLANNING PRINCIPLES

DURATION

:

45 minutes

OBJECTIVE

:

On successful completion of this course the student will have a fair knowledge of the history of the city and of its growth and changing form over time. He will also understand the objectives of town planning.

INDEX

PAGE

1.

INTRODUCTION TO TOWN PLANNING ..............................................

1

1.1

Introduction ...................................................................................

2

1.2

Ancient cities ..................................................................................

2

1.3

Medieval cities ................................................................................

2

1.4

Pre-industrial cities ..........................................................................

3

1.5

Industrial cities ...............................................................................

3

1.6

The modern city ..............................................................................

3

1.7

Town planning as a discipline ...........................................................

4

1.7.1

The need for town planning .............................................................

4

1.7.2

Urbanisation ...................................................................................

4

1.7.3

City size and sprawl .........................................................................

4

1.7.4

Provision of services ........................................................................

5

1.7.5

Pollution .........................................................................................

5

1.7.6

Decay ............................................................................................

5

The objectives of town planning .......................................................

5

1.8.1

Spatial order ...................................................................................

5

1.8.2

Separation of conflicting land uses ....................................................

5

1.8.3

Distribution of employment opportunities, retail facilities and other services

1.8.4

Provision of open space ..................................................................

6

1.8.5

Land use and transportation .............................................................

6

1.8.6

Density of residential areas ...............................................................

6

Influence on land values ...................................................................

6

1.8

1.9

6


1. 1.1

INTRODUCTION TO TOWN-PLANNING PRINCIPLES INTRODUCTION

'The city, and with it a highly developed culture, was born in Babylonia, shortly before that country's decline. In Babylon was assembled, for the first time, everything that constitutes the attractiveness and the danger of giant cities: culture and depravity, arrogance and money, temples of faith and those of hectic amusement, splendour and misery. In its time, Babylon rose against the sky in solitary grandeur. In our time, hundreds of immense cities spread all over the continents, and many of them resemble Babylon more than might be obvious at first glance. Tomorrow, Babylon will be everywhere.' This is Wolf Schneider's wry view, in his classic 'Babylon is everywhere. The city as man's fate'. But what is a city? 'What is the city but the people,' is Shakespeare's view (Coriolanus 1607-08), but the people have multiplied from Coriolanus' time, through Shakespeare's to the present. Also the cities have grown – grown explosively in recent times. Today the modern city bears little resemblance to its forebears, not due to change in the peoples of the city, but due to changes in the technology. The most pervasive are those pertaining to communications.

1.2 Ancient cities During earlier centuries cities flourished in many parts of the globe, some growing from encampments and villages to accommodate tens of thousands of inhabitants. By modern standards, they were small towns. The growth was organic and unplanned and the urban form haphazard. Some of these ancient cities such as Rome and Athens were surprisingly sophisticated, in some cases with water supplies to the individual houses and also a rudimentary sewerage system.


1.3 Medieval cities The centre of the very earliest settlements was usually a castle or fort. This symbiotic relationship continued through the classical to the medieval era when walls, castles and cathedrals became the most obvious landmarks of the city. The cities grew, settlements sprang up outside their walls requiring yet more walls, further out. Higher and thicker walls became essential as military technology improved.

The Renaissance city had huge, elaborate systems of walls and it was here that experiments in urban planning took place. In some cases, geometric road systems (inside the walls) were used. Most late medieval cities were, however, still unplanned, densely-packed collections of dwellings and public buildings, which were set around narrow winding streets trodden by throngs of humanity on foot and horse, mule or ox-back.

1.4 Pre-industrial cities No particular date marks the end of the medieval era, but by the late sixteenth century most of the large European cities had outgrown their medieval walled form. London, in Shakespeare's day, already housed half a million people - Paris even more - and for another century growth continued, albeit relatively slowly and in an unplanned fashion. This archetypal urban form was still dense and had a single town centre.

1.5 Industrial cities The industrial revolution brought technologies that caused large-scale migration from the rural areas to the cities. Also the vast improvements in transport technology contributed to the pre-industrial city's expansion. Foremost of these were rail-based mass transportation systems - the train and the horse-drawn tram. The commuter city was born at this time, bringing with it the tidal restlessness of a city centre that fills during the day and empties at night.

1.6 The modern city The motor car, more than any other single invention, has influenced the change of urban form, from the industrial city to the sprawling, multi-nucleated modern metropolis. Sheer distance and the fact that the older central areas cannot handle huge volumes of traffic and provide parking have resulted in their relative decline in importance. New centres have developed closer to the suburban areas and urban areas have been linked by freeways to give equal accessibility to almost all points within these areas. Many other technologies have influenced urban form. For example, the invention of the elevator allowed a huge increase in its vertical dimensions and the telephone made it possible to decentralise work places.


A regional metropolis such as Los Angeles, or even the Witwatersrand, is the archetypal modern city, with numerous towns now being incorporated into a single conurbation. These urban regions are massive, the biggest having upward of 20 million inhabitants and are extremely complex. While individual areas within these urban regions have been planned, the system as a whole has only been planned partially.

1.7 Town planning as a discipline Town planning as a seperate field of endeavour has evolved only over the last century and has its roots in the social reform movements in Europe. These movements were started at the end of the nineteenth century in reaction to the squalid conditions and manifold problems of the industrial cities. Civic designers, architects, surveyors and civil engineers contributed to the new discipline by designing new towns on utopian ideals. Geography is, however, the primary discipline in which town planning is rooted. This discipline has in itself evolved rapidly over the last century and has provided the analytical tools for spatial and urban analysis necessary for the planning of towns. Town planning has now evolved into a multi-faceted discipline that is concerned with analysis, prediction and design, with the focus on land use. The scale of interest varies from individual properties to towns and regions.

1.7.1

The need for town planning

Modern cities are beset with problems such as rapid growth, enormous size, sprawl, lack of transport, housing and services, pollution and general decay. Judicious land use planning can however ameliorate many of these problems as described below. 1.7.2

Urbanisation

Large-scale urbanisation, particularly in the third world, is the result of the continuously growing rural population moving to the already overcrowded major cities. A good example is South Korea which had a population of 21, 5 million in 1955, 18% of whom lived in the capital, Seoul. In 1980 the total population had reached 37, 4 million and 36% of all Koreans lived in Seoul. The city itself had thus grown by 350% in 25 years. In the developed world a doubling during this period is considered high. Few countries have been successful in checking the high growth rates of great metropolitan areas. Planned improvement of the quality of life in the peripheral areas appears to be a partial solution only.

1.7.3

City size and sprawl

Not only has the number of inhabitants in the modern metropolitan areas increased, but also the overall density has decreased and as a result cover enormous areas. While individual areas within these urban regions have been planned, the system as a whole has only been planned partially.


In addition development has 'leapfrogged' undeveloped areas, resulting in high cost of services and increased transport costs. While there is no immediate solution for sheer size, sprawl can be reduced to a minimum by planning the direction and sequence of growth.


1.7.4

Provision of services

While the cost of providing services to all the new citizens of a burgeoning metropolis is prohibitive, many newcomers can be better housed in selected areas that have a basic minimum of services and are close to places of employment. Also the planning of new employment centres close to concentrations of people can lead to long-term saving in transportation and other service costs.

1.7.5

Pollution

This is a major problem in many modern cities but has been tackled successfully in, for example, Great Britain where the Clean Air Act has led to a dramatic improvement in the quality of the air over the last two decades. Planning the location of major polluters away from major urban areas is however only an interim solution as longrange pollution is posing a worldwide problem, also in South Africa.

1.7.6

Decay

The decay of central areas can be reduced effectively by planning renewal projects and solving traffic and parking problems, as many of the successful urban renewal projects in the United States attest to.

1.8 The objectives of town planning The objectives of town planning depend largely on the country involved and the scale of interest. Those related to the South African context are as follows:

1.8.1

Spatial order

Spatial order is the primary objective of land use planning at any scale involving more than one parcel of land. Land uses must be positioned so that they relate correctly to other existing and proposed land uses. ~ Thus the objective is to plan for harmonious development.

1.8.2

Separation of conflicting land uses

An extension of the objective to order land uses in the space-economy is to separate conflicting land uses. For example noxious industries should be separated from residential areas.

1.8.3

Distribution of employment opportunities, retail facilities and other services

An objective of town planning is to distribute employment, retail facilities and other services as equally as possible so that everybody may have equal access to these facilities and services. In practice this is a-difficult objective to attain as other criteria are often dominant in the location of these land uses.


1.8.4

Provision of open space

A further objective of planners is to provide open space within the city. As land values increase it gets more difficult to achieve this objective.

1.8.5

Land use and transportation

In the past, transportation systems, in particular freeways and major roads, were often designed without reference to land uses. The objective is now to treat both land uses and transportation as one system and plan the provision of both simultaneously.

1.8.6

Density of residential areas

A planning objective is to control densities in residential areas. This objective links with the provision of open space.

1.9 Influence on land values Land values are a function of numerous factors but the rights adhering to property are one of the most important. These rights are influenced by planning decisions and by the legacy of history in the older cities. These rights may be laid down at an early stage of the design of a township or may be created at a later stage by rezoning or other procedure.


LESSON

:

2

TITLE

:

PLANNING OBJECTIVES

DURATION

:

45 minutes

OBJECTIVE

:

On successful completion of this lesson the students will have been introduced to the hierarchy of planning authorities in the Republic and the way in which the various bodies making up this hierarchy operate to control land uses.

INDEX

PAGE

2.

PLANNING AUTHORITIES ................................................................

7

2.1

The hierarchy of planning authorities ...... ..........................................

8

2.1.1

The controlling hierarchy and levels of concern ..................................

8

2.1.2

The functioning of the system .........................................................

8

Central government .........................................................................

9

2.2.1

The Department of Constitutional Development & Planning..................

9

2.2.2

Department of Cooperation and Development.....................................

9

2.2.3

Department of Community Development ...........................................

10

2.2.4

Department of Industries, Commerce & Tourism.................................

10

2.2.5

Department of Mineral and Energy Affairs ... ......................................

10

2.2.6

Department of Transport ..................................................................

10

2.2.7

Department of Agriculture ................................................................

10

2.2.8

Other Government Departments and Parastatals.................................

10

2.2.9

Influence on land values ...................................................................

10

Provincial -authorities ......................................................................

11

2.3.1

Ordinances controlling land uses ......................................................

11

2.3.2

Department of local government ......................................................

11

2.3.3

Townships' Boards ..........................................................................

11

2.3.4

Functions .......................................................................................

11

2.3.5

Provincial Roads Departments ..........................................................

11

2.3.6

Nature Conservation Departments .....................................................

11

Local authorities ..............................................................................

12

Definition and function of local authorities ..........................................

12

2.2

2.3

2.4 2.4.1


2. PLANNING AUTHORITIES 2.1 The hierarchy of planning authorities

2.1.1

The controlling hierarchy and levels of concern

Town and regional planning in South Africa is controlled by a three-tier system at present. The first tier is Central Government, with the Department of -GCwteitutionfl Development and Planning at present being the most important controlling department in terms of land-use planning. This department and the other government departments' concern is the national level.

The second tier consists of the Provincial Administrations of the four Provinces which control land-use planning through their Departments of Local Government, Roads Departments and various other Departments. The level of concern of this tier is both provincial and local as the Townships' Boards are the final arbiter on most land use planning issues and are the dominant influence at the township scale. The third tier is that of the local authorities. These are municipalities, Divisional Councils, Local Area Committees and peri-urban boards. This tier has a local concern in terms of land-use planning. The emerging Regional Service Councils are likely to form part of this third tier.

2.1.2

The functioning of the system

The subject of land-use planning is the built and unbuilt environment and the objectives, in the main, those discussed in the first lesson. The system functions by the preparation, implementation, control and amendment of land-use plans at each level of the three tiers in the hierarchy. At a national level laws are enacted and amended that regulate the use of land at all levels and these laws are controlled by various government departments.


The Provincial Administrations work within the framework of the above-mentioned laws and in turn regulate the use of land by means of ordinances which influence land use and planning at a provincial and local level. The local authorities control land-use planning by means of by-laws and town planning schemes, the latter of which are the most direct form of control of land uses in urban areas.

2.2 Central Government 2.2.1

The Department of Development & Planning

This department is the successor to the Department of Planning, and controls land uses in the main in terms of the Physical Planning Act No. 88 of 1967. The Act has the stated broad objective to promote coordinated environment planning and the utilization of the Republic's resources. More specifically in terms of this Act land uses are controlled as follows: (a) Section 2 controls This section controls the zoning, subdivision and use of land for industrial purposes. No rezoning or subdivision of industrial land, or establishment of a new industrial township may be done without the approval of the Department. (b) Section 3 controls This section controlsthe establishment and extension of factories. Certain industries are classified according to the ratio of Black to White employees and may not be extended or relocated without the approval of the Department. These controls have now largely been abolished. (c) Section 4 controls This section allows for the reservation of land for the utilisation of a specific natural resource, or as a nature area. (d) Controlled areas The Act allows for the establishment of controlled areas in which land uses are restricted.

(e) Guide plans The Act provides for certain types of plans, known as guide plans, 'for the future spatial development of the area defined' ..... (6A(l)(a)). The Act also states: 'such plan can determine that land may be utilised for a specific purpose only or ..... also for such other purposes for which provision is made by the plan.' These statutory plans have been prepared for many of the principal urban areas of the Republic and constitute the top level of land- use planning in these areas.

2.2.2

Department of Cooperation and Development

This department is important in controlling land uses in Black areas and self governing territories in terms of a number of acts.


2.2.3 Department of Community Development This department controls land uses in certain urban areas which are occupied by Coloureds or Asians. This department also influences land use by the administration of the Rents Act which, inter alia, imposes rent control on certain buildings. This department also administers the technical departments involved in land survey and deeds registration.

2.2.4

Department of Industries, Commerce & Tourism

This department administers the section 3 controls of the Physical Planning Act as a result of the devolution of these powers.

2.2.5

Department of Mineral and Energy Affairs

All proclaimed mining land is controlled by this department which controls land use on the surface in terms of the Mining Act.


2.2.6

Department of Transport

This department influences land uses adjacent to existing national roads in terms of the National Roads Act, as well as fundamentally influencing land-use planning on a metropolitan scale by being involved in the alignment and planning of new national roads. Act 21 of 1940, Advertising on Roads and Ribbon Development Act is also administered by this department.

2.2.7

Department of Agriculture

The subdivisionof the Agricultural Land Act (No. 70 of 1970) is administered by this department. This Act prohibits the subdivision of any agricultural land, including that in urban areas and controlled by any town-planning scheme, save with the permission of the department.

2.2.8

Other Government Departments and Parastatals

Other departments such as the Departments of Water Affairs, Defence, Posts and Telecommunications and the existing legislation enables ESCOM to exercise some form of control over land uses.

2.2.9

Influence on land values

The departments mentioned above influence land value through the control of land uses. For instance, if an area is zoned industrial in terms of a Guide Plan, it will radically change the land value in spite of the fact that a township may have to be established before the land can be used for industrial purposes. The land value thus reflects the potential future use of the land and hence potential future income.


2.3 Provincial Authorities 2.3.1

Ordinances controlling land uses

In all four Provinces land-use planning and control is administered by provincial ordinances. In the Transvaal the relevant ordinance is the Town-planning and Townships Ordinance, No. 25 of 1965. This Ordinance gives the Transvaal Provincial Administration wide powers of control over land uses at both the provincial and metropolitan levels.

2.3.2

Department of local government

Within the Provincial Administrations the departments of the local government are responsible for the administering of the ordinances controlling land use. While the internal organisation of these departments vary from province to province they generally operate on the principle of advertising all proposed land use changes (subdivision, rezoning or township establishment), and then submitting both proposals and objections at a hearing.

2.3.3

Townships' Boards

These Boards investigate each proposed land-use change and under their auspices all hearings are held. These boards then make recommendations to the Director of Local Government.

2.3.4

Functions

The Department of Local Government functions as a post box for all applications involving proposed land use changes by circulating applications to all the relevant government departments and refers their comments to the applicant. The department also functions as the arbiter in disputes between applicants and local authorities.


2.3.5

Provincial Roads Departments

These departments are important as they can control the land uses adjacent to roads in terms of the Road and Ribbon Development Act (No. 21 of 1940). This Act allows provincial roads departments to declare certain roads as building restriction roads alongside of which no buildings or structures may be erected for a distance of 200 metres. This Act also allows the Roads Departments to restrict the '< establishment or extension of townships adjacent to certain roads.

2.3.6

Nature Conservation Departments

These departments control land uses in terms of both acts and ordinances but are relatively unimportant in urban areas.

2.4 Local authorities 2.4.1

Definition and function of local authorities

Local authorities are defined in Section 84 of the Republic of South Africa Constitution Act. These local authorities function as the controlling bodies for land uses by means of a town-planning scheme which is promulgated in terms of a Provincial Ordinance.


LESSON

:

3

TITLE

:

TOWN-PLANNING SCHEMES

DURATION

:

45 Minutes

OBJECTIVE

:

On successful completion of this course the student will have been introduced to townplanning schemes and the major elements of these schemes, namely the scheme clauses, scheme map and annexures. He will also understand how the main types of control of a town planning scheme operate. These are: 1

Use zoning

2.

Coverage, density and height

3.

Parking ratios

4.

Building lines and other controls

Index

PAGE

3.

TOWN PLANNING SCHEMES .............................................................

13

3.1

The scheme in general ....................................................................

15

3.1.1

Objectives ......................................................................................

15

3.1.2

Format of schemes ..........................................................................

15

3.1.3

Scheme clauses ..............................................................................

15

3.1.5

Scheme map ..................................................................................

16

3.1.6

Annexures ......................................................................................

16

3.2

Use zoning .....................................................................................

16

3.2.1

Land uses defined in town planning schemes .....................................

17

3.2.2

Use zoning .....................................................................................

17

3.2.3

Residential use zones ......................................................................

17

3.2.4

Business use zones .........................................................................

18

3.2.5

Industrial use zones .........................................................................

18

3.2.6

Special use zones ............................................................................

18

3.2.7

Other use zones...............................................................................

18


3.3

Floor area ratio (FAR)(bulk) ..............................................................

19

3.3.1

Definition .......................................................................................

19

3.3.2

Calculation .....................................................................................

19

3.3.3

Measuring floor area .......................................................................

20

3.3.4

Use of floor-area ratio in schemes .....................................................

20

3.4

Coverage, density and height ............................................................

20

3.4.1

Coverage ........................................................................................

20

3.4.2

Calculation of coverage.....................................................................

3.4.3

Density ..........................................................................................

21

3.4.4

Height restriction ............................................................................

21

3.4.5

Composite controls ..........................................................................

21

Parking and other controls ...............................................................

22

3.5.1

Parking ratios .................................................................................

22

3.5.2

Calculation of parking requirements ..................................................

22

3.5.3

Influence on development potential ..................................................

23

3.5.4

Building lines and building-restriction areas .......................................

24

3.5.5

Other controls .................................................................................

25

Relaxations, consent uses and amendment schemes ..........................

25

3.6.1

Relaxations .....................................................................................

25

3.6.2

Consent uses ..................................................................................

25

3.6.3

Amendment schemes ......................................................................

26

3.6.4

Removal of restrictive conditions ......................................................

26

3.5

3.6

20


3. TOWN-PLANNING SCHEMES 3.1 The scheme in general 3.1.1

Objectives

Town-planning schemes are intended to regulate land uses within the area of the controlling local authority and do not deal with statements of intent. The objective is to provide a clear guide to all property owners and developers as to the limitations on the use and development of their property. 3.1.2

Format of schemes

Town-planning schemes consist of scheme clauses, tables, schedules, annexures and maps. The first three are now almost always contained in one or two A3 documents. In the past, scheme maps were in colour but this seriously impaired duplication and a standard format of map in monochrome has now been adopted. As a result, there are scheme maps in both colour and monochrome at present, but in future all scheme maps will be in monochrome.

3.1.3

Scheme clauses

The scheme clauses are in both English and Afrikaans and generally cover the following: (a) General - Definitions, area of scheme, applications, approvals, hearings, plan requirements etc. (b) Building lines, building restriction areas, side and rear spaces (c) Use of land and buildings - use zoning (d) Building restrictions - density, floor area, height and coverage (e) Parking and loading (f) Aesthetic control, advertisements and hoardings (g) New townships (h) Consolidation and subdivision (i) Enforcement, appeals, contraventions


The clauses are followed by the schedules, which generally cover the following:

(i)

Building lines

(ii)

Street widening

(iii)

Formulas

(iv)

Standard conditions

These schedules are usually applicable to specific erven or sites. 3.1.4

Scheme map

The scheme map is a map of the entire area under the jurisdiction of the local authority, which is now broken up into individual monochrome scheme sheets for convenience. The scheme is also known as Map 3, and is continually amended owing to amendment schemes or rezonings, which change the use zoning (and other controls). Scheme sheets in monochrome are at a scale of 1:2 500 and are usually printed on Al size sheets. The scheme map consists of two series:(a) The A series - This indicates use zoning for each erf, farm portion or farm within the area covered by the town-planning scheme. (b) The B series - This indicates height zones and density controls for each property as described above. On both series the only background information is property boundaries, streets and some servitudes. No contours or cadastral information is given, apart from a grid system. Both series have a key which explains the system of notation and a locality plan in the right-hand margin. Map 10 indicates a reduction of the two sheets of the A and B series that cover an area within the Johannesburg Municipal Area.

3.1.5

Annexures

These are additions to the scheme clauses that consist of maps and stipulations prescribing certain rights, obligations and conditions applicable to specific erven or sites that are indicated on the scheme map (A & B series) by a circled number. Generally these annexures relate to erven zoned special, erven with existing use rights, and erven with complex building lines.

3.2 Use zoning


3.2.1

Land uses defined in town-planning schemes

The problem of controlling land uses is centred on the need to define land uses clearly. Land uses are thus defined as accurately as possible in the definitions of town-planning schemes. In addition concepts and items that relate to these uses are also defined accurately. Note however that definitions are likely to vary slightly from scheme to scheme.

3.2.2

Use zoning

The use of land and the buildings to be erected is controlled in the scheme by classifying land uses into use zones. In each use zone a number of particular land uses, as defined, are permitted as a primary right while a further number are permitted with the consent of the local authority. All remaining uses are not permitted. This use zoning is achieved by means of the definitions, explanatory clauses, and a table in the scheme clauses. Thus, if a use zone of Residential 1 is indicated on a scheme sheet of the Johannesburg Town Planning Scheme of 1979 (as indicated on Map 10), Table C of the scheme clauses indicates that 'Dwelling House and Outbuildings' are the buildings which may be erected and used. According to Table C, with the consent of the city council the land may also be put to a variety of uses, e.g. for churches, schools, community halls, etc. Use-zone classifications are now being standardised according to the Department of Local Government Standards on conditions of title.

3.2.3

Residential use zones

Two categories of residential use zones were originally applied. These were 'special residential' which permitted single dwellings and 'general residential' which permitted flats. With the introduction of Sectional Title Registration and the development of new types of accommodation the range has now been broadened to 3 or even 4 classes:

RESIDENTIAL 1 - Dwelling houses RESIDENTIAL 2 - Dwelling units (such as simplex and duplex townhouses) RESIDENTIAL 3 -

Dwelling units or residential buildings (as above or flats)

The last category would be differentiated by density, coverage and floor-space ratios.

3.2.4

Business use zones


As for residential use zones two categories of business were originally defined as 'Special Business' and 'GeneralBusiness', the latter permitting additional uses such as parking garages, places for refreshment etc. as a primary right. Johannesburg Municipality applies four categories of business use zoning with Business 1 and 2 permitting shops, dwelling units, residential buildings and those for business purposes, inter alia, as a primary right. In the category Business 3 only shops and offices are allowed as a primary right while in Business 4 only offices, banks, building societies and restaurants are permitted as primary rights. These additional categories are intended to allow certain areas, such as Parktown, to develop into office areas only, while in older areas such as Braamfontein the traditional ground-floor use of shops may be permitted.


3.2.5

Industrial use zones

Here again certain schemes only differentiate between General Industrial and Restricted Industrial. The former usually allow noxious industrial uses as a primary right. Noxious industries are in turn defined in terms of certain types of activities which are specified in the scheme. Some local authorities have added a third category which allows for warehousing as a primary right. It should be noted that industrial use zones generally also permit shops and business purposes as a primary right

3.2.6

Special use zones

All schemes make provision for special buildings and special uses which are defined as buildings and uses not defined in the scheme. This use zone allows flexibility in all schemes as certain buildings and uses do not fit into the usual use zones. Special use zones always require an annexure in which the intended use or building is described as accurately as possible

3.2.7

Other use zones

A variety of other uses are generally utilised in schemes, such as commercial, institutional, educational, amusement, municipal, undetermined, agricultural etc. Again, the use zone is defined and described in each scheme.


Most farm portions are zoned 'Agricultural' which permits agricultural purposes only as a primary right. In addition only dwelling units, schools, churches, clubs, and special buildings are usually permitted with the consent of the local authority. This is to prevent land with this zoning being used intensively without the establishment of a township. The use zone 'Undetermined' is similar to 'Agricultural' as only agricultural activities are permitted as a primary right. However, all other uses are permitted by consent of the local authority, making this zoning useful where the local authority prefers the consent-use procedure.

3.3 Floor-area ratio (FAR)(Bulk) 3.3.1

Definition

Floor-area ratio is also known as floor-space ratio (FSR). The floor- area ratio of a building is defined as the ratio obtained by dividing the .floor area of a building (or buildings) by the total area of the erf on which the building (or buildings) is erected. Thus FAR

=

Total nett floor area of building(s); as defined in scheme

---------------------Total area of erf

'Floor area' is however defined rigorously, and differently, in each scheme. All schemes exclude open roofs, access passages and corridors, lift rooms, verandahs, canopies etc. However, not all schemes exclude parking in the building if this is less than a certain portion of a particular floor area. Other exclusions such as cleaning and maintenance areas etc. are not excluded from all schemes. The area of an erf is however rarely in dispute as this is as given on the SG diagram and in the title deed.


3.3.2

Calculation

-Floor area ratios are generally calculated to the first decimal point and the only source of error is usually the measurement of the floor area. Units should be noted as areas of erven on older diagrams are given in cape square feet. An example of a floor-area calculation:

Assume: Total nett floor area of building is 2 422 m Total area of erf is 2 262,5 cape ft 2 = 712,4 m2

2 422 Thus FAR

=

---------

=

3, 4

712, 4

3.3.3

Measuring floor area

Exact floor areas of buildings are measured in terms of a convertion of measurement that stipulates the exact line or component from which it is to be measured. In the calculation of floor areas this level of accuracy is rarely required as the gross area covered by the floor level of each storey is the point of departure. This is usually a wall exterior-towall measurement. From this gross area the exclusions are deducted.


3.3.4

Use of floor-area ratio in schemes

Floor-area ratios are essential land-use controls. They control the total floor areas on which the intensity of use generally depends, as larger floor area means more people, more traffic etc. Floor-area ratios are introduced into schemes either by: (a) Defining floor area ratio zones. These are zones delineated on the scheme map, in which maximum floor space ratios for different use zones are defined. (b) Prescribing floor-area ratios according to height zones. Higher maximum floor-area ratios are allowed in height zones where taller buildings are permitted.

3.4 Coverage, density & height 3.4.1

Coverage

Coverage is defined as the percentage of an erf (or site) which may be covered by buildings. Coverage is an important control in that it limits ground-floor area and allows the balance to be used for parking, landscaping etc.

3.4.2

Calculation of coverage

Coverage is obtained by calculating the total floor area of the building, including overhangs, but excluding areas that do not count as coverage, such as covered atriums etc. As with floor-space ratio the calculation of coverage is simple, but the exclusions must be determined beforehand and units in floor area and erf area matched.

Thus, for an erf of 712,4 m2 and floor area of building of 420 m2

Floor area Coverage =

----------Erf area

420 =

-------712, 4

=

59%


3.4.3

Density

Density can be a complex concept but is generally defined in schemes simply as the maximum number of dwellings or residential units per erf or site or per hectare. This control places a limit on the number of buildings on an erf or site. Often in schemes density is given in table form as density zones in categories of 1 dwelling house per unit area for Residential 1 or Special Residential. For Residential 2,3, etc. (General Residential) a maximum density in dwelling units per hectare is given in the scheme clauses, or relate to height, coverage and floor-area ratio controls.

3.4.4

Height restriction

Height restrictions control the total height of buildings either by one or all of the following: (a) Limiting the number of storeys (b) Limiting the height to an elevation above sea level (c) Limiting the height in storeys in accordance with the width of the adjacent street (d) Limiting the height by a projection line (59 in Johannesburg) drawn from the horizontal from a point at street level on the opposite street boundary Height restrictions are often introduced into schemes in the form of height zones which are indicated on the scheme map. Additional height restrictions are introduced that relate to certain use zones only or to certain height zones only. Height restrictions are obviously important in determining the overall size of buildings in central business districts. 3.4.5

Composite controls

Coverage, floor space ratio, density and height controls can be introduced into schemes so that they relate to each other. This is more often the case with schemes for large central business districts which have tall office buildings and require sophisticated controls.

3.5 Parking and other controls 3.5.1

Parking ratios

Parking ratios are the ratios derived from dividing the floor area of a building by the required number of parking spaces. Also the floor area of the building multiplied by the parking ratio will give the total number of parking spaces required. As different land and building uses generate different parking requirements the ratios vary with these uses.

Thus in the case of Johannesburg: Offices - 2 spaces / 100 m2 floor area


Banks, building societies, doctor's consulting rooms, restaurants, shops - 6 spaces / 100 m2 floor area Industrial and commercial uses - 1 space / 100 m2 . It should be noted that these ratios vary between the local authorities. In the case of residential land uses parking ratios are stated as the number of spaces per dwelling unit of a particular size and an additional ratio for visitors. In the larger municipalities parking zones are defined and delineated on the scheme map. The parking ratios will vary from one parking zone to another. In addition prohibitions on providing parking in certain of these zones may be an added form of control. Parking ratios are an important form of planning control as they can not only limit building size but also influence use.

3.5.2

Calculation of parking requirements

Calculating the parking requirements of an existing or notional building can be complex and the following points should be noted: (a) The parking ratio used must relate to the correct land or building use,and to the correct height zone, and must be obtained from the prevailing town-planning scheme that controls the property in question. (b) The floor area used for the calculation of parking ratios varies between schemes. In some schemes gross leasable area is used while in others gross floor areas (as for floor-area ratio) is used. In smaller buildings this will make an appreciable difference. (c) The size of a parking bay is rarely determined in a scheme but a clause is usually included requiring that parking spaces and manoeuvering areas are to be to the satisfaction of the council.

An accepted standard is that each space will be 2,5 metres wide and 6 metres long. In some cases this can be reduced to 2,2 metres by 5,5 metres. With the requisite manoeuvering space the area required for each bay is 35 m2. Example: An erf on 1,1560 hectares in extent has a permissible floor-area ratio of 0,6. Calculate the parking requirements if 50% of the floor area is to be used for shops and 50% for offices. Parking ratios are 2 bays/ 100 m2 offices and 6 bays/100 m2 for shops. (a)

TOTAL FLOOR AREA PERMISSIBLE = 0,6 x 11 560 = 6 936 m2

(b)

Office:

Floor area = 50% x 6 936 = 3 468 m2 Parking required = 2 x 3 468/100 = 69,36 spaces


(c)

Shops:

Floor area = 3 468 m2 Parking required = 6 x 3 468/100 = 208,08 spaces

(d)

Total parking requirement = 69,36 + 208,08 = 277,44 spaces

Rounding up

= 278 spaces

(e)

= 278 x 35

Approximate area required

= 9 730 m2 3.5.6

Influence on development potential

As can be seen in the above example this is a large proportion of the site (84%). As a result the developer will have to either build a multi-level basement for parking or reduce the ratio of shops to offices, or reduce the size of his building. Local authorities are now increasing their parking ratios as car ownership and traffic problems increase and hence these ratios are becoming a most important influence on the development potential of sites. For instance, two erven of identical size and with identical controls in terms of use zone, floor-area ratio, height, coverage, etc. in Sandton and Johannesburg will have different development potentials due to the fact that the parking ratio for offices in Sandton is 4 spaces/ 100 m2, as opposed to 2 bays/100 m2 in Johannesburg. The effect is that as much parking is required as for a pure office development, at far more than twice the cost.


3.5.7

Building lines and building-restriction areas

Building lines are common forms of controlling development and ensuring non-contiguous development. Building lines may be laid down in several ways: (a) In title deeds (b) In conditions for establishment of townships (c) By statute (e.g. 21 of 1940) (d) In town-planning schemes In the Johannesburg Town Planning Scheme of 1979 building line is defined as follows: '...a line indicating the furtherest boundary of a building restriction area from a street or any other boundary of an erf of portion of land not abutting on a street, and which is a fixed distance from the boundary of an erf or portion of land' ((x)p5). This definition includes a building-restriction area which is further defined as an area in which no building may be erected. Thus building lines are lines within which all development is contained. In some cases not even parking is allowed beyond these lines. In town-planning schemes, building lines are controlled by clauses stipulating general regulations regarding building lines, and building lines in new townships. Building lines in older townships and in areas in which roads are widened or new roads are built, are more complex and these are generally stipulated in schedules of the scheme. Three types of building lines are in use: (i) Building lines from street boundaries - These are controlled by all the forms mentioned above. (ii) Side spaces - These are the spaces between buildings and common erf side boundaries. These are usually controlled by town- planning schemes only. (iii) Rear spaces - These are the spaces between buildings and common erf boundaries.


3.5.8

Other controls (a) Subdivision

Town-planning schemes prescribe minimum sizes of erven after subdivision, subject to further controls imposed by the Ordinances of that province. Controls are also laid down as to how subdivided erven are to be articulated, particularly in the case of panhandled erven. (b) Aesthetic control Most town-planning schemes now have some form of aesthetic control over buildings, signs and hoardings. This may take the form of imposing a development-plan procedure on all new buildings in certain use zones. Drawings of hoardings and advertisements are also required. (c) Open space Open space requirements in new townships are set out in some schemes. This is usually the ratio of open space to the number of dwelling units. 3.6 Relaxations, consent uses and amendment schemes 3.6.1

Relaxations

Certain local authorities sometimes permit some building lines, some height controls, parking ratios and other controls to be relaxed with the permission of the council. 3.6.2

Consent uses

Relaxations are not to be confused with consent uses which are secondary uses permitted in use zones by consent of the local authority. The procedure in these cases is rigorously defined in each scheme and consists of -the following steps: (a) An advertising procedure consisting of advertisements in both English and Afrikaans newspapers for two consecutive weeks, and by notice on the site. These advertisements set out the intended use to be applied for and call for objections. (b) The applicant then applies to the local authority and motivates his application. (c) If objections are received by both the local authority and the applicant these are then taken into consideration. (d) The local authority may then give consent to the proposed use and in this case will set out the conditions of the consent use. Alternatively the local authority may refuse its consent in which case the applicant may appeal to the Townships' Board. Consent-use procedures can take between one and four months.


3.6.3

Amendment schemes

When the use zoning of an erf or portion of land is to be amended and the intended use is not a secondary use which could be permitted by consent of the local authority, then the town-planning scheme has to be amended. This is known as an amendment scheme or a rezoning. Amendment schemes may also be used to amend the floor-area ratio, height, coverage and density controls. Unlike the consent-use procedure the application for a rezoning is made to the local authority and to the Department of Local Government simultaneously. As with the consent-use procedure there is an advertising and objection procedure but in this case it follows the formal application. If the amendment scheme is approved, it is again subject to a number of conditions laid down by the Department of Local Government. The approval is gazetted in the Provincial Gazette and the scheme map is amended by Map 3 of the amendment scheme. This procedure may take 8 to 12 months. 3.6.4

Removal of restrictive conditions

If there is a restrictive condition in the title deed for an erf, or portion of land, which prohibits the proposed use, then this condition will have to be removed by means of a removal-of-restrictions procedure in terms of Act No. 84 of 1967. The abovementioned procedure may require an independent application to the Department of Local Government if the conflicting use is to be exercised after a consent-use procedure. If the procedure to be followed is a rezoning then the removal-of-restrictions application will be dealt with simultaneously by the Department of Local Government. In the case of a rezoning and/or a removal of restrictive condition the title deed of the property in question will have to be endorsed.


LESSON

:

4

TITLE

:

DEVELOPMENT AND GUIDE PLANS

DURATION

:

45 minutes

OBJECTIVE

:

On successful completion of this lesson the student will have been introduced to the following plans and their function in controlling land use: 1.

Development and guide plans

2.

Policy and master plans

3.

Guide plans

4.

Development plans

INDEX

PAGE

4.

DEVELOPMENT AND GUIDE PLANS ...................................................

27

4.1

Policy plans and master plans ...........................................................

28

4.1.1

Policy plans ....................................................................................

28

4.1.2

Regional and sub-regional plans ........................................................

28

4.1.3

Master plans ...................................................................................

28

Guide plans ....................................................................................

29

4.2.1

Guide-plan legislation, purpose and implications ................................

29

4.2.2

Format of guide plans ......................................................................

29

4.2.3

Land use control .............................................................................

29

4.2.4

Guide-plan formulation and amendment ............................................

30

4.2.5

Interpretation .................................................................................

30

4.2.6

Influence on land value ...................................................................

30

Development plans...........................................................................

31

4.3.1

Purpose and type ............................................................................

31

4.3.2

Local-authority development plans ....................................................

31

4.3.3

Multi-township development plans ....................................................

31

4.3.4

Single-site development plans ..........................................................

31

4.3.5

Influence on land value ...................................................................

32

4.2

4.3


4. DEVELOPMENT AND GUIDE PLANS 4.1 Policy plans and master plans 4.1.1

Policy plans

These are statements of policy which influence land-use management and control on a national scale, and do not illustrate proposals by means of maps and plans, but rather discuss proposals and policy. An example of a policy plan is the 'White Paper on Industrial Development Strategy in South Africa' prepared by a study group of the Ministry of Economic Affairs from 1977 to 1984. Section 7 of this report, entitled 'Strategy for the spatial ordering of industrial development' made far-reaching recommendations which influenced the decentralisation of industry. As a result of these recommendations the land-use control measure, Section 3 of the Physical Planning Act, has been largely abolished. A further example is the National Physical Development Plan which is the framework for regional planning in all four provinces. 4.1.2

Regional and sub-regional plans

These plans have as their subject a specific region or portion of a region. Unlike policy plans they contain a plan of the area under consideration as well as analyses and recommendations. An example of a regional plan is the plan entitled 'A Spatial Development Strategy for the PWV Complex' the draft of which was published by the Office of the Prime Minister in 1981. This plan analysed the possible overall long-term spatial structure of the PWV complex and then set forth a number of medium-term development strategies with regard to various land uses. An example of a sub-regional plan would be any of the guide-plans dealing with sections of the PWV, or other parts of the country. These are dealt with at length below. 4.1.3

Master plans

This term is hardly used at present in South Africa but originally pertained to plans that were more detailed than regional and sub-regional plans and concentrated on specific land uses. The PWV road consortium plan for the network of roads covering this metropolitan area is a good example. This plan required as part of its input the regional plan mentioned in 4.1.2., but concentrated on a specific aspect which was the road system. All the abovementioned plans are non-statutory, that is they have no legislative backing. In spite of this they are often vital in imposing a policy and spatial framework on future development. 4.2 Guide plans 4.2.1

Guide plan legislation, purpose and implications

Guide plans are formulated in terms of section 6 of the Physical Planning Act, as set out in Lesson 2, and as such are statutory plans. Guide plans for each are prepared by committees falling under a central guide-plan committee of the Office of Constitutional Development and Planning (formerly office of the Prime Minister). The purpose of guide plans is '... not detail planning but the formulation of an overall planning policy that will serve as a framework for further action at the provincial or local government level.' (Far East Rand Guide Plan 1984 p.4) The implications of the preparation and publishing of draft and final guide plans are that:


(a) No town-planning scheme can be extended or amended unless it is consistent with the relevant guide plan. (b) Where no town-planning scheme is in force, land can only be used for purposes determined by or consistent with the guide plan. (c) No consent uses shall be granted unless these are consistent with the guideplan. (d) No permission may be granted in terms of any other law for the use of land within the relevant guide plan. The implications are that the guide plan exerts a broad and powerful set of controls on all land uses within the guideplan area. 4.2.2

Format of guide plans

Guide plans consist of text and a plan. The text is A4 format while the plan is non-standard, as the areas covered are irregular. The text generally covers the natural characteristics of the area, the population, economy, existing land use and infrastructure. Thereafter the objectives of the -guide plan are setout, and the proposals set forth and analysed. 4.2.3

Land-uses control

The land uses controlled in guide plans are: (a) Residential land uses - The term 'township development' is used in guide plans and as stated: 'also embraces other land uses which are directly connected with the residential function and which serve the community in a broader context, such as the different central business districts, townships for commercial purposes and other urban services' (Pretoria Guide Plan 1984, 52). (b) Industrial land uses - The areas zoned 'for industrial purposes' are indicated on the guide plans and set out in the text. These land uses are controlledfurther by schedules which specify the type of industry that may be located in specific areas. (c) Mining - This is of particular importance for the Witwatersrand guide-plan areas. (d) Recreation, tourism and nature conservation. (e) Agriculture. (f) Government uses. 4.2.4

Guide-plan formulation and amendment

Guide plans are first published in draft form and all interested parties may then object to the proposals or make further ones. After these objections and further proposals have been considered, the guide plan is published in its final form. Since most guide plans are still in draft form the procedure for amending them is still being tested. In theory it requires applications to the Departments of Constitutional Development and Planning, of Agriculture and of Local Government.


4.2.5

Interpretation

Guide plans are simply statements of intent and their interpretation is straightforward. It should be noted however that the plan of the proposed land uses is diagrammatic, particularly in the case of draft guide plans, and should not be scaled. Boundaries of proposed land uses are described accurately in the text which takes precedence over the plan. 4.2.6

Influence on land value

As guide plans are now a formalised system of land-use zoning, their influence on land value is profound. Areas zoned for industrial uses, even at the draft guide-plan stage, have increased sharply in market value. Areas of other land uses have responded less dramatically but have nevertheless been influenced in terms of land value. 4.3 Development plans 4.3.1

Purpose and type

Development plans are non-statutory plans that are a statement of intent with regard to land uses. They are at a large scale and have a relatively short period of concern. The level of detail is high. Three major types of development plans can be identified: (a) Local-authority development plans - These usually cover large portions of an urban area. (b) Multi-township development plans - These are concerned with areas covering several proposed townships. (c) Single site development plans - These cover one erf or site only. 4.3.2

Local-authority development plans

Local authorities prepare development plans to guide development in a particular area and to provide a basis for coordinated decision making. The area of concern may be large, as in the case of the Southern Johannesburg Development Plan, or small as in the Sandton CBD Plan. Ownership of land in this latter area is usually private and the plan is partly aimed at property developers. In the former case, the Southern Johannesburg Development Plan, (CED 1979) the area under consideration covered some 115 square kilometres, a portion of which was owned by the council itself. This plan was an in-depth analysis of the area and a detailed set of proposals indicating all major land uses. These plans are very similar to guide plans, with a text and plan, but are easier to interpret as the level of detail and accuracy is greater.

4.3.3

Multi-township development plans

These are plans prepared by local authorities and property developers that cover an area of two or-more proposed townships. The intention is usually not only to indicate land uses but to indicate individual erven and all roads. Examples are the Sunninghill Development Plan and the Douglasdale Development Plan. Both are in Sandton.


4.3.4

Single-site development plans

These plans indicate the development on a single site, generally for local authority requirements. They have a great amount of detail including all land uses, subdivision lines, internal roads, landscaping etc. The requirements for these plans are set out in the relevant town-planning schemes. 4.3.5

Influence on land value

Development plans are non-statutory but they are important statements of intent. If they have been prepared by a local authority the proposed zoning may influence land values, as this zoning might be adopted into a guide plan.


LESSON :

5

TITLE

:

Practical Session

DURATION

:

2, 5 Hours

OBJECTIVE

:

On successful completion of this lesson the student will have completed a series of exercises in which he obtained practical experience relating to: 1.

Detailed interpretation of maps and plans

2.

Detailed interpretation of aerial photographs

3.

Planimetric calculations

4.

Interpretation of town-planning scheme maps

5.

Interpretation of town-planning scheme clauses

6.

Interpretation of road plans

7.

Interpretation of guide plans

8.

Interpretation of development plans

9.

Interpretation of layout plans

10.

Interpretation of general plans and SG diagrams

INDEX 5.

PAGE PRACTICAL SESSION .......................................................................

33


5. PRACTICAL SESSION The exercises to be carried out by the students are based on the examples given in the texts of this course and also the one on 'Map and plan reading' and on the maps and plans contained in the handbook of diagrams, maps and plans. The exercises will be distributed on the afternoon of the practical session.


LESSON

:

6

TITLE

:

TOWNSHIP ESTABLISHMENT

DURATION

:

45 minutes

OBJECTIVE

:

On successful completion of this lesson the student will have been introduced to the major steps in the township development procedure, the rudiments of township design and the manner in which power lines are incorporated into townships.

INDEX

PAGE

6.

TOWNSHIP ESTABLISHMENT ...........................................................

35

6.1

Overview ........................................................................................

36

6.1.1

Definition and introduction ................ ...............................................

36

6.1.2

Who establishes townships ...............................................................

36

6.1.3

Preconditions to township establishment ...........................................

36

6.1.4

Factors influencing choice of site .......................................................

36

6.1.5

Factors influencing mix of uses .........................................................

36

Township establishment procedure ....................................................

37

6.2.1

Service certificates ..........................................................................

37

6.2.2

Application to local authority ............................................................

37

6.2.3

Application to the department of local government..............................

37

6.2.4

Geological survey ............................................................................

37

6.2.5

Procedure .......................................................................................

38

6.2.6

Length of time procedure .................................................................

38

6.2.7

Land value at various stages ............................................................

38

Township design .............................................................................

39

6.3.1

Context of the township ...................................................................

39

6.3.2

Site survey .....................................................................................

39

6.3.3

Geological survey ............................................................................

39

6.3.4

Flood lines ......................................................................................

39

6.3.5

Other site factors ............................................................................

39

6.3.6

Layout of township roads .................................................................

40

6.3.7

Layout of erven ...............................................................................

40

6.2

6.3


6.3.8

Influence of township design on land values ......................................

40

Power lines in townships ..................................................................

40

6.4.1

Power line servitudes .......................................................................

40

6.4.2

Routes of power lines ......................................................................

40

6.4.3

Incorporating existing power lines into townships ...............................

40

6.4


6. TOWNSHIP ESTABLISHMENT 6.1 Overview 6.1.1

Definition and introduction

A township is defined in the Town Planning and Townships Ordinance of the Transvaal as" ...any area of land laid out or divided into or developed as sites for residential, business, industrial or similar purposes where such sites are arranged in such a manner as to be intersected or connected by or to abut on any street or right of way." (p.2) Townships are established in terms of provincial ordinances which are broadly similar in all four provinces. 6.1.2

Who establishes townships

Private developers establish most of the townships in and around the major urban centres. In smaller towns local authorities may establish townships, while in decentralised growth points government departments may be responsible for that. 6.1.3

Preconditions to township establishment

Prior to a township being established it is likely that, even if the site is on the periphery of a town or city, it will not be used for agricultural purposes. During the period immediately prior to establishing a township, the location of the site to other development will improve and the land value will increase. At a certain stage, when services can be supplied and when the developer perceives the demand to be sufficient in the near future, the developer will commence with township establishment. 6.1.4

Factors influencing choice of site

The township developer always tries to choose a site with the best location he can afford for the land use category he is interested in. Secondary considerations are site factors such as slope, soil type, sterile land etc. which are the same factors analysed by the valuer in determining the value of the site. 6.1.5

Factors influencing mix of uses

Prior to submitting an application to establish a township, the developer will have to decide on the mix of land uses. The broad category of land use will be largely fixed by Guide and development Plans for the area in question but decisions within this category should still be made. For example when a site zoned 'for township purposes' in terms of the Guide Plan is chosen, the developer will have to look to the local authority for guidance on the density of development to proceed with. If no development plan is available, and the council approves, the developer is likely to try to maximise the density, as in the past this has proved the most profitable approach. Thus the developer will try to zone as much as possible of his residential township for townhouses, flats, etc., rather than for houses (Residential 1 or Special Residential). With the oversupply of proclaimed land for higher-density residential uses (in White areas) now exceeding supply in most municipalities, the choice is more difficult for the developer and he may decide to go for the alternative of lower-cost lower-profit erven for conventional houses.

6.2 Township-establishment procedure 6.2,1

Service certificates


In the Transvaal a certificate is required from the local authority to the effect that essential services (sewage disposal, water and electricity) can be supplied to the proposed township within 3 years prior to an application to the Department of Local Government. If the authority is not a bulk supplier of electricity then an additional certificate will have to be obtained from Escom. 6.2.2

Application to local authority

An application is made to the local authority under whose jurisdiction the site falls prior to or with the application to the Department of Local Government. The local authority then submits its comments to the Department of Local Government on the proposed land uses and on how these fit into the land-use planning of this local authority, if any. 6.2.3

Application to the department of local government

The application to the Department of Local Government consists primarily of a layout plan (50 copies) and a motivation memorandum which explains why and how the township has been designed. Copies of this plan and memorandum are then circulated in all other relevant government and provincial departments.

6.2.4

Geological survey

In the case of a residential township a geological survey has to be carried out to the specifications of the Department of Geological Survey. This is to ascertain whether conditions for the laying of foundations are suitable, e.g. whether heaving clays and collapsing sand underlie the site on which the township is to be established. In dolomitic areas sinkholes are a danger and can impair township development. 6.2.5

Procedure

After the Department of Local Government has received the application for the establishment of a township, the township is advertised by this department. The advertisement sets out the proposed land uses and calls for objections. The next step is a hearing by the Townships' Board at which the applicant and objectors are present. If the Board upholds the objectors' view, certain land uses or road alignments may have to be changed. A further step is the issuing of the conditions of establishment of the township after all comments of all departments have been received. In the past the issuing of draft conditions was a preliminary step to the issuing of final conditions. This has now been simplified to a single set of conditions of establishment which sets out the obligations of the developer and the proposed rights for each erf. Also included are pre-proclamation conditions which have to be met before the township can be proclaimed. Prior to proclamation the township is surveyed and a general plan is prepared and approved by the Surveyor General. On proclamation the township is incorporated into the town-planning scheme of the local authority. 6.2.6

Length of time of procedure

The procedure described above is complex and lengthy, partly due to the large number of government and other departments involved. An average time for the procedure, from application to proclamation, is about 4 years, the minimum period being about 2, 5 years. As can be appreciated, this length of time makes timing in terms of the business cycle almost impossible.


6.2.7

Land value at various stages

As township establishment is a lengthy procedure the land value of a site that is in the process of being proclaimed will reflect an increase in value as the proclamation date draws closer. Generally no increase in value is likely until the conditions for the establishment of the proposed township have been received. Once pre-proclamation conditions have been met and the township surveyed, a further increase in value can be expected. The large increase in the value of land on proclamation is due partly to two factors. Firstly, the increase in value will reflect the high cost of servicing the township, which is generally commenced soon after proclamation. Secondly, the sale of erven prior to the proclamation of a township is prohibited and the price of land thus includes all the holding costs.

6.3 Township design 6.3.1

Context of the township

Before commencing with the design of a township, the planner or designer will have to investigate the plans of the local authority and the Guide Plan. The present and the anticipated market for various land uses should also be considered. If the township involves any business uses the planner will have to establish how these uses fit into the existing hierarchy of other shopping centres. He will also have to establish the status of other land in the area and whether plans have been submitted for the establishment of townships on them. 6.3.2

Site survey

The actual design of the township is largely influenced by the nature of the site and a site survey of the slopes, hills or koppies, rivers and streams, vegetation and existing uses will have to be done prior to design work. In the Transvaal contours indicated on layout plans have to be within specified limits of accuracy and intervals as set out in the Town-planning and Townships Ordinance. For site surveys where contouring is done this has to be taken into consideration.

6.3.3

Geological survey

If required by the Department of Geological Survey, a geological survey involving core-samples to a depth of several metres will have to be undertaken. If the proposed township is underlain by clay, it will have to be analysed and certain areas may have to be reserved for parks, or excluded entirely from the township. Sand with a collapsing grain structure and dolomitic areas will be treated similarly. 6.3.4

Floodlines


All townships require a floodline investigation by a professional engineer. If the site contains or is bounded by a stream or river 20 and 50 year recurrence floodlines will have to be established. The area within the 50 year floodline will then have to be reserved for a park or possibly even excluded from the township. Even if the township is not affected by a floodline the professional engineer will have to certify the plan to this effect. 6.3.5

Other site factors

Areas that are over a gradient of 1 in 6 cannot be used for residential purposes and are also reserved for parks. Areas of dense indigenous bush and rock outcrops are also often reserved for parks. 6.3.6

Layout of township roads

One of the foremost problems facing the designer is the choice of road widths and the alignment of these roads. On smaller sites there may be little choice but on larger sites a variety of arterials, collectors and local roads will have to be chosen and aligned according to a number of criteria, such as minimising road lengths, allowing specified distances between intersections etc. At this stage of the design there are always trade-offs between horizontal and vertical alignment criteria and the utilisation of land.


6.3.7

Layout of erven

Erven in the proposed township are laid out by subdividing the blocks created by the proposed roads, down to a ruling size of erven. In effect the layout of roads and erven is done simultaneously as block sizes are determined by road spacing. Larger erven and special-use erven are generally determined in location and approximately in size before the detailed layout of roads and the remainder of the erven commences.

6.3.8

Influence of township design on land values

While location in relation to higher-status areas is important, it now appears that correct design and planning of townships definitely influences land values.

6.4 Powerlines in townships 6.4.1

Powerline servitudes

Almost all powerlines are taken along routes on which servitudes have been registered in favour of ESCOM or the local authority. The width of these servitudes partly depends on the capacity of the transmission lines and the nature of the area traversed by the line. 6.4.2

Routes of powerlines

In urban areas powerlines are wherever possible routed along linear park systems such as those that run on either side of streams and rivers. Where this is not possible powerlines often run adjacent to major roads. 6.4.3

Incorporating existing powerlines into townships

Existing powerlines often have to be incorporated into existing townships. Often the only method open to the designer is to create a park along the alignment of the powerline. Where erven are large this system can be modified and the route incorporated into the erven.


LESSON

:

7

TITLE

:

TOWNSHIP DEVELOPMENT COSTS

DURATION

:

45 Minutes

OBJECTIVE

:

On successful completion of this lesson the student will have been introduced to the basic principles of land economics and the influence of planning, locational and other factors on land value, and the various costs of developing a township.

INDEX 7.

PAGE TOWNSHIP DEVELOPMENT COSTS ...................................................

41

7.1

The cost of land ..............................................................................

42

7.1.1

Influence of planning on cost of raw land ...........................................

42

7.1.2

Locational factors influencing raw-land value .....................................

42

7.1.3

Other factors influencing raw-land value ............................................

43

7.1.4

Range of raw-land values ................................................................

43

Holding costs ..................................................................................

43

7.2.1

Forms of ownership and financing .....................................................

43

7.2.2

Interest and loan repayments ...........................................................

43

7.2.3

Rates and taxes ..............................................................................

43

7.2.4

Other holding costs ..........................................................................

44

Development costs ..........................................................................

44

7.3.1

Development costs ..........................................................................

44

7.3.2

Streets and storm-water drains ........................................................

44

7.3.3

Sewerage ........................................................................................

44

7.3.4

Water ............................................................................................

44

7.3.5

Electricity supply .............................................................................

45

7.3.6

Endowments ...................................................................................

45

7.3.7

Other costs .....................................................................................

45

7.3.8

Payment .........................................................................................

45

7.4 Influence of land value .........................................................................................

45

7.5 Valuation of preproclamation township land and proclaimed townships......................

46

7.2

7.3


7

TOWNSHIP DEVELOPMENT COSTS

7.1 The cost of land 7.1.1

Influence of planning on cost of raw land

In this section 'raw land' is defined as unserviced land intended for township establishment. Town-planning controls have a pervasive influence on the cost of raw land as the existing and also the future use of the land will depend on these controls. Raw land for township purposes will be more expensive than similarly situated land that can only be used for agricultural purposes. This is partly due to the role of the speculator in the development chain. His is not a negative role as he purchases and holds land until it realizes its township potential, and as such bears much of the risk and also pays the holding costs which a pure township developer would have to carry. Town-planning controls at all levels influence the cost of raw land. A policy plan may positively influence the value of existing industrial land by restraining the supply side of the market. Guide plans will influence the land-value structure within a guide-plan area by assigning uses and densities of use. This broad plan will be reflected in the town-planning scheme which will control each individual property and entrench the use zoning. 7.1.2

Locational factors influencing raw-land value

This topic can only be touched briefly in this lesson but forms the basis of the study of land economics. The simplest model of land value versus distance was propounded by Von Thunen over a century ago. This model postulated that, for an agricultural market town on a featureless plain land, value would increase from the periphery to the centre of the town as a function of transport costs to the market centre. The modern motorised metropolis is a far cry from this but the essence of the PWV, and the surrounding-area town centre still holds. On a regional basis where a group of towns is defined as a core, such as the PWV, and the surrounding area defined as the periphery, there is indeed a relationship between distance to the core and the cost of land. For instance potential industrial land may be R50 per square metre in the PWV (core) but only a fraction of this in any small town outside the core. The same will hold true for residential land and other land uses but obviously with different core/periphery characteristics.

7.1.3

Other factors influencing raw-land value

The topography of raw land is an important factor in determining land value as this will determine how much of the land could ultimately be utilised for a particular purpose. Steep slopes, rock outcrops, rivers etc. can all detract from the amount of usable land. However, while these characteristics could reduce the value of raw land for one purpose, such as for industrial uses, they could increase the value for other purposes, such as residential or recreational uses. Another factor is the geology of the land which may make it unsuitable for certain uses. 7.1.4

Range of raw-land values

Raw-land values vary widely with location, as have been noted in 7.1.2. Large variations through time are also common in South Africa. This is partly due to the volatility of the business cycle.


7.2 Holding costs 7.2.1

Forms of ownership and financing

There are numerous methods by which a developer can acquire property for development. It may be purchased outright, purchased with equity and loan capital, purchased in part as a joint venture with the existing owner, or the rights to develop may be secured through options. Each of these methods of ownership will require different forms of financing but in all cases the developer will be faced with a holding cost. 7.2.2

Interest and loan repayments

The purchase of property entails the commitment of a sum of money, usually in the form of loan and equity capital in varying ratios. Arrangements could be made to repay loans with varying interest rates over various periods of time. Loss of interest, or opportunity costs must also be calculated for equity capital, as this capital could earn interest elsewhere. 7.2.3

Rates and taxes

Even if land within urban areas is not utilised, some forms of rates and taxes are usually payable. Rates are payable to the local authority, on a scale that is based on the municipal valuation of the land. 7.2.4

Other holding costs

Other holding costs are those for services, if any, and maintenance, such as grass cutting and rubbish removal.

7.3 Development costs 7.3.1

Development costs

To convert raw land into land suitable for a township, a developer will have to pay for the installation of essential services and also development fees, or endowments, for future services to the community. The services required and the endowments vary from province to province. 7.3.2

Streets and storm-water drains

All townships (except holiday townships) have streets which have to be graded and tarred. In addition storm-water sewers and culverts have to be installed or the roadway designed to act as a storm-water channel. Streets involve two types of costs to the developer, firstly the direct cost of the construction of the streets and stormwater system. This cost is directly proportional to the lengths of the streets. Secondly there is a cost due to the loss of land that could be used for other land uses. This cost is a function of the total area of streets in the township and their proportion to the total area of the township. Streets and storm-water drains are a major expense to the township developer, comprising up to 60% of the total cost of services at time of writing.


7.3.3

Sewerage

The developer of a township is responsible for the sewer reticulation within a township. This is a system of pipes, and sometimes pumps, that carry the township sewage into a main outfall sewer. In addition the developer will often have to contribute to the bulk sewerage system and treatment works. Off-setting this, however, is a refund on the cost of the township sewer reticulation by the local authority, which is refunded as the system is used by residents. 7.3.4

Water

All townships will require a water supply. The capacity of the supply depends on the demand by the land use. An industrial township may require a bigger supply than a residential township. In the Transvaal the developer is responsible for all the costs of water reticulation in the proposed township. 7.3.5

Electricity supply

The developer will be responsible for part of the costs of providing electricity to all erven within the township, depending on whether the supplier is Escom or a local authority. The costs are largely for transformers and electric cabling. 7.3.6

Endowments

Endowments for residential townships are payable to the Education Departments of the various provinces. The cost in the Transvaal is based on the cost of land required to build schools to meet the needs of the expected number of residents in the township. Endowments are also payable to the local authorities for cemeteries and depositing sites. 7.3.7

Other costs

Land may have to be transferred to the government for purposes such as post offices, etc. and this may involve a loss of profit to the developer. In addition, loss of interest on the capital required to service a township may be a major item where the rate of selling the erven in the township is slow. Professional costs for the establishment of the township, the surveying and the design of erven are further costs. 7.3.8

Payment

Usually services are only partially installed prior to proclamation. Water, sewerage and electricity are installed first. Storm-water drains may be provided only after proclamation of the township. The cost of services is now almost always guaranteed by a bank or financial institution. Endowments are payable either as lump sums or proportionately as erven in the township are sold.


7.4

Influence on land value

As we have seen, proclaimed township land has 3 major cost components: the costof new land, the holding cost and the development costs. The latter will influence land value in proportion to the total of the first two. This may be as high as 70% of the total costs. 7.5

Valuation of pre-proclamation township land and proclaimed townships

Frequently a valuer may be requested to determine the value of a piece of property which is close to proclamation. If the land has been the subject of an application for proclamation but conditions of establishment has not been received the value will be similar to other raw land in the area with a small incremental increase in value for professional fees, geological studies, etc. If the final conditions of establishment for the property in question has been received, an accurate assessment of the costs in bringing the township to proclamation is possible. The value of a property that is close to proclamation can then be ascertained by establishing the price for erven in similar townships in the area and then discounting the cost to achieve proclamation. The accuracy of this method depends in part on the ability to ascertain the exact date of proclamation. After proclamation the township can be treated as a collection of erven with the important proviso that the total value of the property will be reduced by the costs of any endowments or other development costs still outstanding.


LESSON

:

8

TITLE

:

SECTIONAL TITLE AND TIME-SHARING SCHEMES

DURATION

:

45 minutes

OBJECTIVE

:

On successful completion of this lesson the student will understand the rudiments of a sectional-title scheme and of a time sharing scheme.

INDEX

PAGE

8.

SECTIONAL-TITLE AND TIME-SHARING SCHEMES ... ..........................

48

8.1

Sectional-title schemes .....................................................................

48

8.2

Section ...........................................................................................

48

8.3

Common property ........................... ................................................

48

8.4

The participation quota.....................................................................

49

8.5

The body corporate .........................................................................

49

8.6

The sectionability of buildings ..........................................................

49

8.7

Interpreting sectional plans ..............................................................

50

8.7.1

Sheet 1 and Annexure A ...................................................................

50

8.7.2

The block plan ................................................................................

50

8.7.3

Sectional plans ................................................................................

51

8.8

Valuation of sections .......................................................................

51

8.9

The Property Time Sharing Control Act ..............................................

51

8.10

Primary ownership ..........................................................................

51

8.11

Form of contract .............................................................................

52

8.12

Operation of time-sharing schemes ...................................................

52

8.13

Valuation of time-shared property .....................................................

52

8.14

Effect on land value..........................................................................

53


8 8.1

SECTIONAL-TITLE AND TIME-SHARING SCHEMES Sectional-title schemes

The Sectional Titles Act, number 66 of 1971, provides for then sectioning of buildings and the separate ownership of parts of buildings. The preamble to this Act reads as follows: â&#x20AC;&#x2DC;To provide for the division of buildings into sections and common property and for the acquisition of separate ownership in such sections coupled with joint ownership in such common property.' The Sectional Titles Act introduced a new concept in ownership of property in South Africa that allowed for the sole ownership of part of a building. At the same time the owner of this part was conferred joint ownership in the form of an undivided share of the property on which the building stands. 8.2

Section

A section is a part of the building which has been divided. A section can be as small as a single room, as in the case of a garage or transformer room, or as large as an entire floor, as in the case of multi-storey buildings. A minimum of two sections are required in a sectional title 'scheme'. This is merely the total scheme (or plan) in terms of which a building, or buildings, are to be divided in terms of the Sectional Titles Act. The rights of ownership to a section are conferred by means of a Sectional Title Deed which is registered in a Sectional Title Register at the relevant deeds registry. A section is identified by a number on a series of plans termed sectional plans. At least one of these plans has a vertical section through the building which will identify the section in terms of its relation to those sections above or below it, if any. This is essential in larger buildings which consist of many sections on many floors. In these larger buildings a section will be identified in terms of a floor plan of the floor on which the section is located and a plan of a vertical section through thesection in question. 8.3

Common property

The common property of a sectional-title scheme comprises all the land on which the building or buildings is situated, as well as the parts of the building or buildings that are not included in any section.

Thus if the building is a block of flats, the common property will be the gardens surrounding the block, the storerooms, servants quarters, lift shafts, machine rooms, stairs, corridors etc. Certain areas of the common property may be granted to certain sections. In the case of the gardens of duplex flats these may be defined in terms of an exclusive-use diagram. In the case of parking bays in multi-storey buildings, these may be designated by a number and allocated to a certain section.

8.4

The participation quota

The common property in owned jointly by the owners of the sections, each owner having an undivided share in the common property. The undivided shares are apportioned in terms of the 'participation quota' which is the fraction of the floor area of the section in relation to the floor area of all the sections added together. If, for example, there are 10 flats in a block and all these flats are equal in size, each will have a participation quota of 0,10. Participation quotas are always in decimal fractions.


It should be noted that the participation quotas in other types of building that are sectioned, such as industrial buildings, may not be equal. 8.5

The body corporate

The body corporate is formed by the new owners. The developer loses his membership only when he has sold or disposed of all the sections in the scheme. The body corporate is a controlling body that comes into operation as soon as any person other than the developer becomes an owner of a unit in a building. The developer is defined as the registered owner of the land on which buildings are situated or are to be erected and which have been sectioned in terms of the Sectional Titles Act of 1971. The body corporate is responsible for the control, administration and management of the common property in a development scheme. The body corporate is in effect a legal person and can be sued, or sue another party. The body corporate has wide powers in terms of levying contributions from the members and in terms of entering agreements. The body corporate deals with matters of the day to day running of the scheme.

8.6 The sectionability of buildings Both existing and proposed buildings can only be sectioned provided they conform to certain standards laid down in the Sectional Titles Act. These are, inter alia: (a) The building must have at least two sections. A single dwelling on an erf cannot be sectioned or sold under sectional title. Legislation has however been introduced to allow single buildings to be sold under sectional title. (b) The building must conform to the town-planning scheme of the local authority that prevailed at the time thebuilding was erected. Thus an old building that encroaches on building lines may not be sectionable without the relaxation of these building lines. A new building that contravenes the town-planning scheme may also not be sectionable. 8.7 Interpreting sectional plans If a building or part of a building that has been sectioned is to be evaluated, the sectional plans may have to be interpreted. These plans are distinct to building plans or they convey only certain information with regard to the internal boundaries of the sections and also of the relationship of one building to another. A set of sample plans are indicated as maps number 11A to 11I. 8.7.1

Sheet 1 and Annexure A

The first sheet of the sectional plans is an information sheet containing data relating to the property, the owner, the name of the scheme and the number and height of buildings to be sectioned. Annexure A is an annexure affixed to the sectional plans that describes title conditions, servitudes etc. relating to the property to be sectioned.


8.7.2

The block plan

This plan indicates the boundaries of the property on which the building is situated. The following points should be noted: (a) The property is described in the notes and the sides are dimensioned and given a direction. Coordinates of the property are not given - these are indicated on the relevant SG diagram. Adjacent properties and streets are however described on the plan.

(b) The buildings, or proposed buildings, are shown to scale on the block plan. The buildings are not dimensioned but the distance to the nearest boundaries are. The overhangs and other encroachments of the building are also shown. (c) The buildings are described in terms of a letter in the alphabet but are not described in terms of function. Thus the garages of a block of flats may be shown as building B but will not be called garages. (d) Buildings and certain areas within buildings that are common property will be labled as such - usually abbreviated to CP. 8.7.3

Sectional plans

These are one or more plans that show the relationship of all sections to each other, both horizontally and vertically. Each plan is for one building only. The parts of buildings adjacent to these sections, such as corridors, balconies, porches etc., are also shown on these plans. A large building with many floors may require many of these plans. 8.8 Valuation of sections and sectioned buildings When dealing with individual sections these may be treated as any other form of property for the purposes of valuation. Buildings that are valued on the basis of being sectionable can be valued as the aggregate value of all the sections, less the costs of disposal. 8.9 The Property Time Sharing Control Act, No 75 of 1983 This Act introduced a new form of property ownership in the Republic whereby a building or portion of a building can be used jointly by ownership of a time module. The Act defines a property time-sharing scheme as 'any scheme, arrangement or undertaking in terms of which timesharing interests are offered for alienation or are alienated'. In this Act the term 'alienate' is further defined as follows, '...sell or let for utilisation over a period of at least three years, whether such sale or lease is subject to a suspensive or resolutive condition.' Another important definition is that of the 'Time-sharing interest', which is defined as '... any right to or interest in the exclusive use or occupation, during determined or determinable periods during any year, of accommodation.' (l.xviii)


8.10 Primary ownership Time-sharing schemes may operate on property which is held under the following forms of tenure: (a)

Share-block schemes

(b)

Sectional-title schemes

(c)

Conventional title

(d)

Leasehold

The form of tenure does not change during the period of the scheme which is generally not in perpetuity. 8.11 Form of contract The developer of a time-sharing scheme sells a number of time modules on certain premises to a purchaser for a certain number of years. The ownership of the premises and the form of tenure do not change, but the developer is bound by the contract with the purchaser and his rights of occupation of the premises fall away for the period in question. In addition the developer is bound by the Act to perform certain duties. 8.12 Operation of time-sharing schemes Time-sharing schemes and sectional-title schemes are the same in that a managing association has to be formed, consisting of representatives of the developer and of the purchasers of time-share interests. This management association has extended powers to control the day-to-day running of the scheme, particularly the common property that is defined in the same way as common property in sectional-title schemes. Due to the nature of time-sharing schemes with a large number of persons occupying premises over time, management is the key to successful schemes. For this reason hotels are ideal for time-sharing purposes.8.13 Valuation of time-shared property Property that is subject to a time-sharing scheme has to be valued as an income-producing property for the period of the scheme, but in addition has a residual value to the owner after the term of the scheme has been completed. The valuation exercise must start with an investigation of the nature of the time-sharing scheme. The income stream is calculated from the value of each time module and the number that have been successfully sold or let, or by comparison to a similar scheme. Costs are calculated by scrutinising the records of the management association, or by comparison. Thereafter a valuation of the property itself must be carried out and the value depreciated over the period of the time-sharing scheme, to give the residual value of the property. 8.14 Effect on land value With the introduction of the Sectional Titles Act the prices of certain types of property, such as blocks of flats that had no rent control, increased rapidly for a number of years. This reflected the increased profitability and liquidity of these properties. These factors still influence the value of buildings as a sectionable building will have a higher value than an identical unsectionable building, and a valuer should ascertain the status of a building in this respect. The time-sharing concept has had a similar influence on the value of certain types of property, particularly hotels, where time-sharing has greatly increased prices in certain coastal areas.


LESSON

:

9

TITLE

:

SUBDIVISION

DURATION

:

45 Minutes

OBJECTIVE

:

On successful completion of this lesson the student will have been introduced to the legislation and forms of subdivision of various types of land.

INDEX

PAGE

9.

SUBDIVISION .................................................................................

54

9.1

Definition .......................................................................................

55

9.2

Farms and farm portions ..................................................................

55

9.3

Agricultural holdings .........................................................................

55

9.4

Subdivision of farm portions and agricultural holdings ........................

55

9.5

Subdivision of erven in townships .....................................................

56

9.6

Subdivision of industrial erven ..........................................................

57

9.7

Survey and registration ....................................................................

57

9.8

Physical subdivisibility of land ...........................................................

57

9.9

Influence on land value ...................................................................

57


9

SUBDIVISION

9.1 Definition Subdivision can be defined as the procedure whereby an existing farm, farm portion, erf or section is divided into two or more portions. Subdivision must be distinguished from township establishment as the two procedures are completely different. 9.2 Farms and farm portions All farms in the Republic are registered at the relevant deeds registry in a register of farms. Most of the original farms, which were named and surveyed many years ago, have been subdivided to a greater or lesser extent. The subdivided portions and the balance, which is termed the remaining extent (or remainder), are also registered in the farm register. With the onset of urban development the original farms have been subdivided and re-subdivided many times; but until a portion becomes the subject of a township application and is proclaimed, it keeps the name of the original farm although the portion description will change. 9.3 Agricultural holdings Agricultural holdings are distinct from farm portions (and townships). This type of property, also known as a 'smallholding' or 'plot' were created in the Transvaal in terms of the Agricultural Registration Act (Transvaal) No 22 of 1919. This Act allowed agricultural holdings to be registered by the Registrar of Deeds as such, and to be exempted from the Townships and Town-Planning Ordinance (of 1931). This Act was then repealed by the Division of Land Ordinance, no 20 of 1957, and, save for certain provisions, control of the holdings was transferred to the Administrator of the Province. 9.4 Subdivision of farm portions and agricultural holdings The subdivision of farm portions throughout the Republic is controlled by the Subdivision of Agricultural Land Act, No 70 of 1970. This Act controls the subdivision of agricultural land, the vesting of undivided shares in agricultural land, and the leasing or sale of agricultural land. This Act empowers the Minister of Agriculture to allow or disallow the subdivision of agricultural land that is not controlled by a Town Planning Scheme. In the Transvaal the subdivision of agricultural land is also controlled by the Division of Land Ordinance, No 19 of 1975. This ordinance controls all agricultural land in the Transvaal that does not fall under the ambit of the Subdivision of Agricultural Land Act of 1970. This Ordinance is of importance as large, important areas in the Transvaal fall under the control of various local authorities and the subdivision of land in these areas is controlled by this Ordinance. The intention of both the Act and the Ordinance mentioned above is to prohibit the subdivision of farms into uneconomic units on the one hand, and to prevent the establishment of illegal townships on the other. The subdivision of agricultural holdings is usually controlled by the Division of Land Ordinance as these generally fall within the area of control of local authorities.


9.5 Subdivision of erven in townships The subdivision of erven in townships are controlled by the Town-planning schemes of the local authority for the area. The subdivision of residential erven is controlled by the density controls in the relevant scheme. For instance the scheme map may indicate a minimum density of 1 dwelling per 1 000 square metres. This would permit the subdivision of a 3 000 square metre erf into three smaller erven of 1 000 square metres each. A common control indicated a density of '1 dwelling per erf' which effectively prohibits the subdivision of the erf without a rezoning. Town-planning schemes also control the subdivision of all other types of erven by allowing or disallowing the subdivision of these erven and to impose conditions when these erven are subdivided. 9.6 Subdivision of industrial erven Erven that are zoned industrial in terms of any town-planning scheme can be subdivided, but only after permission to do so has been granted by the Department of Constitutional Development and Planning and also by the local. authority. The purpose of this additional control, which is enforced in terms of the Physical Planning Act, is to prevent the creation of new industrial erven in areas where decentralisation controls attempt to limit the establishment of new industries. 9.7 Survey and registration Once permission to subdivide agricultural land or erven in townships has been granted the property is pegged and a diagram framed by a land surveyor. This diagram is then approved by the relevant surveyor general and serves as the legal description of the newly created portion. On subdivision one or more new portions may be created and described as, for instance, 'portion 1 of erf 245, XY2 township'. The balance of the property is described as 'the remaining extent of erf, XY2 township'. 9.8 Physical subdivisibility of land There are physical constraints on the subdivision of land, such as the existence of rivers, streams and ridges that may dictate the position of division lines. In the case of erven in townships, physical constraints are generally unimportant and the major consideration is access. Limited frontage onto roads may require the creation of panhandles, or of an access cul-de-sac. 9.9 Influence on land value The subdivisibility of land has a direct influence on land value, because smaller portions of land, particularly in urban areas, generally fetch higher prices per square metre than larger portions. A good example, in the case of agricultural holdings, would be comparing two agricultural holdings in Midrand, one in Erand and the other in Glen Austin. The twoin Midrand are not subdivisible while the latter are, with a minimum size of 1 morgen (8 565 square metres) which allows 3 portions to be created. As a result of this subdivisibility holdings in Glen Austin will on average be 30% more expensive than the Erand Agricultural Holdings. An example in the case of erven in townships would be Bryanston in Sandton, where erven of varying sizes are subdivisible down to a minimum size of either 4 000 square metres or 2 000 square metres. The erven with the latter zoning will generally fetch higher prices per square metre than the former.


It should be noted when the value of a subdivisible erf is determined, two sets of costs have to be taken into consideration. These are: (a) Professional fees for the planning and surveying of the farm, portion or erf. These fees are governed by tariffs of the institutes of the professions involved. In some cases additional professional fees for engineers or geologists may also be incurred.

(b) Development costs in the form of endowments to the local authority are incurred for the installation of services and/or the direct cost of building roads, storm-water drains and water and electricity supply. Some, or even all of these services may not be necessary.


LESSON :

10

TITLE

:

TOWN PLANNING AND LAND VALUE

DURATION

:

45 Minutes

OBJECTIVE

:

On successful completion of this lesson the student will have been introduced to the concepts of 'highest and best use' and 'development potential' and will also be able to summarise the information required to answer the central questions of valuation that are influenced by town planning.

INDEX

PAGE

10. TOWN PLANNING AND VALUE .............................................................................

58

10.1

Highest and best use .......................................................................

59

10.2

Development potential .....................................................................

59

10.3

Development potential and land valuation ..........................................

59

10.4

Checklist of information ...................................................................

60

10.5

Conclusions ....................................................................................

61


10 TOWN PLANNING AND LAND VALUE 10.1 Highest and best use The interrelationship between town planning and land value is more easily understood when the concept of 'highest and best use' is used. This is an American concept that is based on the premise that all land, at a certain time, has a use which will suit the land best. This use will generally maximise the land value at that time, or if the land value is not affected, will maximise the income stream to the property. Example: For many years the highest and best use of a farm portion on the periphery of a city is farming. As the city grows the property may become increasingly accessible and at a certain stage the highest and best use changes to be a residential township. To achieve this use the owner or developer will have to establish a township and invest capital for fees, services, holding costs etc. Within the township itself a number of vacant erven may in time have a highest and best use as a business site. The developer will again have to invest capital to consolidate and rezone the erven. 10.2 Development potential The examples given illustrate that the owner or developer of the property perceives that the property has development potential and that its use may be changed. If this development potential is real and is perceived by other developers in the marketplace as such, the value of the land will increase in accordance with the intended final use. On the other hand the owner or developer may spend time and money trying to achieve what he believes is the highest and best use, but may not be successful. An example would be the site of a potential shopping centre which the local authority and the Department of Local Government believes to be poorly located and reject an application for rezoning. The property market in a Western economy assumes full knowledge of the development potential of the property by all operators in the market. Obviously, however, certain entrepreneurs may perceive the development potential of certain pieces of property before others, which often provide them with larger profits.

10.3 Development potential and land valuation Since the market value of property is influenced by the development potential of the property in question, the valuer will have to establish this development potential as far as possible. However he will have to answer two fundamental questions. Firstly the valuer will have to establish the highest and best use of the property. Secondly the valuer will have to establish whether this highest and best use can be achieved within the framework of the town-planning legislation in the area. To answer these questions the principles of town planning, as set out in this course, should be understood. The checklist of information required is given below as an aid to the valuer. It should be noted that the information required should answer both abovementioned questions simultaneously.

10.4 Checklist of information required for property valuation of vacant farm portions or vacant erven in townships


INFORMATION REQUIRED A. 1.

SOURCE

PHYSICAL CHARACTERISTICS Locality

Maps - 1:50 000 to 1:10 000

a) Closest metropolitan area b) Closest town/village c) Closest reference point 2.

Area - measure, calculate

Maps - 1:50 000 down

or refer to:

Orthophotos - 1:10 000/2 500 Plans - various General Plan SG Diagram Title Deed

3.

Slope - measure and calculate

Maps - 1:50 000 down Orthophotos - 1:10 000/2 500 Plans - Those with contours

4.

Natural Features

As above

a) Drainage - Rivers/streams - Lakes/dams/pans - Watersheds b) Relief - Mountains/hills/koppies c) Other landforms 5.

Vegetation -

assess quality

Orthophotos 1:10 000/2 500

and quantify

Aerial photos Site survey

6.

Fauna - as above

7.

Climate -

As above

assess impact on potential use Climatic maps and data


EXISTING AND POTENTIAL USES 1.

Existing use

Orthophotos - 1:10 000/2 500 Aerial photos Site survey

2.

Adjacent uses

As above

3.

Accessibility via existing roads

Maps - 1:10 000 to 1:2 500 Road plans - 1:5 000 to 1:1 000

4. Accessibility via proposed roads

As above

5. Other uses in area

Orthophotos - 1:10 000/2 500 Aerial photos Site survey

C. TOWN-PLANNING CONTROLS 1. Restrictive conditions

Title deed

2. Status - agricultural/mining/urban

Maps indicating boundaries of local authorities

3. Guide-plan zoning

Guide plan or area

4. Development plan use

Local â&#x20AC;&#x201C; authority plan â&#x20AC;&#x201C; if any

5. Town-planning scheme zoning

TP scheme sheet A TP scheme clauses

6. Town-planning scheme density

TP scheme sheet B TP scheme clauses

7. Other scheme controls

TP scheme clauses

8. Other statutory controls

Subdivision of land act Division of land ordinance Physical planning act Water Act Advertising on roads and Ribbon Development act


10.5 Conclusions After the information has been gathered the valuer will have to establish the likely highest and best use of the property in question. As a guide he should list all the uses that are not represented in the area and then decide if any of these uses apply. As a next step the valuer will have to decide whether the highest and best use can be achievedin terms of the various town-planning controls. If it can, the valuator will have to take cognisance of this potential use and select a method of valuation that will reflect the value of the property if this use can be achieved.


TOWN-PLANNING PRINCIPLES BIBLIOGRAPHY

SCHNEIDER, W. 1963: Babylon is Everywhere, The City as Mans Fate. London: Hodder and Stoughton. BOURNE, L. (Ed) 1971: Internal Structure of the City. Readings on Space and the Environment. London: Oxford University Press. HALL, P. (Ed) 1965: Land Values. Report of the Proceedings of a Colloquim Held in London on March 13 and 14, 1965. London: Sweet and Maxwell.


Book 1 - Traning Manual