PROPERTY: Soshanguve Affordable Housing Experiences Huge Demand
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85% of the development was sold out after six months, prompting the developers to increase the number of stands offered from 445 to 835.
Thorntree View East Extension 6 is being financed by Nedbank Corporate Property Finance’s Affordable Housing division and is 100% complete.
This increase in the number of stands has also resulted in the provision of smaller stands in phases three and four, which will provide buyers with a more varied product range to choose from. This is ideal for an area such as Soshanguve, where market research and buying patterns indicate that the affordable housing consumer prefers to live in the same area, upgrading to bigger houses as they progress in terms of earning power.
Manie Annandale, Head of Nedbank Corporate Property Finance’s Affordable Housing Unit says that the bank needs to be responsive in its funding approach to ensure the developer has the support of its financier to move with the market and provide the variation of stand sizes and prices products that the market demands, and applauds Safrich for its flexible approach. “Safrich worked closely with the Tswane Council to get speedy subdivision that will now yield 835 Affordable Housing homes versus the 445 that were initially planned. This approach also meets with the needs of local authorities who want developers to increase the density of their developments to maximise the existing scarce bulk infrastructure.
It is also important to note that affordable housing provides very little room for a significant reduction of input costs. It is our experience as funder that the only meaningful reduction can occur in the land component, where such densification ensures the developer to reduce end user prices and still achieve financial viability for the development,” says Annandale.
Thorntree View East Extension 6 is located north of the Rosslyn industrial area, within the municipal boundaries of the City of Tshwane. The development is conveniently situated within 20 kilometres of the Pretoria CBD. There is an extensive infrastructure network serving the development, including good bus and taxi routes on Hebron Road.
It forms part of 850 hectares of land which will ultimately become one of the single largest developments of its kind in Gauteng. The establishment of at least 31 000 housing units will be complemented by the development of social and economic amenities, enabling the community to interact effectively with one another.
Business News Sector Tags: Property|