The City of Johannesburg has identified a new opportunity to release abandoned factories to the private sector to build into low-cost affordable housing.
This follows on the back of 84 buildings having been awarded to developers across the Inner City, which will generate an expected R21 billion in investment, 11 000 construction sector jobs and over 6000 affordable housing units.
A further 70 buildings will be awarded by September 2019, set to yield another expected R15 billion in investment, 10 000 jobs and a further 5000 housing opportunities. These properties all form part of the 500 buildings identified for expropriation in the Inner City.
Following on this success in the Inner City, the multi-party government has now identified 37 abandoned factories across the City, specifically those located in areas in desperate need of housing opportunities. Arising from their large stand sizes, the yield of these properties will offer nearly 3000 housing opportunities in multi-story buildings.
The abandoned factories that have been identified are located in areas such as Kew, Devland, Rabie Ridge, Doornfontein, Booysens and Nancefield. Of particular interest are 16 factories identified in close proximity to Alexandra, offering the much needed opportunity to reduce the density of settlement in this under-developed township.
The City will now begin a process of preparing a proposal to Council in August 2019, which will allow the City to begin the legal proceedings of expropriating these properties as abandoned buildings. These factories will be expropriated within the existing legal framework of the Constitution. For this we will utilise the fact that they are abandoned, owners are untraceable and monies owing on these properties exceed their value.
The support of Council is anticipated on this proposal, given how all political parties believe deeply in addressing the housing shortages in our City.
Once this has been granted, the City will be able to put these properties out to the private sector and award them on the criteria that achieves the largest number of residential units, the lowest rentals, the highest job creation and investment.
The City of Johannesburg, previously, has sought to tackle the housing backlog with a reliance upon RDP housing each year which could never begin to reduce the challenge. This is why the multi-party government has adopted an approach which is producing sizeable results in site and service projects, informal settlement upgrades, social housing and partnering with the private sector.
In the environment in which government alone cannot address the staggering housing backlogs, it is imperative that we create the environment for the private sector to unleash the potential of their balance sheets, expertise and efficiency to the benefit of the poorest residents in our City.
The City has considerable plans in the 2019/20 financial year to rollout over 2000 RDP houses, 4000 serviced stands and 10 informal settlement upgrades. The extension of property release program into areas with massive housing shortages, will aid the efforts of the multi-party government to turnaround the housing backlogs in Johannesburg.
Our residents cannot wait for dreams of new cities to materialise in the distant future, if at all. Our multi-party government will focus on fixing our existing City, turning derelict and decaying areas into high rise buildings that modernise our City, achieve investment, create jobs and provide accommodation to those who need it most.
Cllr Herman Mashaba
Executive Mayor
City of Johannesburg
For media queries:
Luyanda Mfeka
Director: Media Communications
Office of the Executive Mayor
City of Joburg
Email: luyandam@joburg.org.za
Call: 076 171 5978
