Unlocking potential: SA property sector offers opportunities yet remains untransformed, says Minister

There are ample opportunities within the South African property sector value chain, yet this sector remains largely untransformed. 

Delivering the keynote address at the two-day Emerging Property Developers Summit that began in KwaZulu-Natal on Thursday, Thembi Simelane, the Minister at the National Department of Human Settlements (DHS), says back property practitioners and developers are still underrepresented in various segments of the ecosystem, which is predominantly white.

“The summit must therefore come up with key interventions and implementable action plans on ensuring participation and empowerment of blacks in the following areas in ownership and management, skills development, enterprise development, procurement budget set-aside and mass employment  sector collaborations.”

The summit brings key industry players under one roof to deliberate on transformation initiatives within the industry. It will also help to promote equal opportunities and increase the participation of previously disadvantaged individuals within and beyond the province.

Simelane says DHS, through its entities, have key programmes implemented by the Property Practitioner Regulatory Authority (PPRA).

These include programmes such as the Principalization Programme, SMMEs for Property Practitioners, and One Learner One Youth Property Practitioner, all of which require massive support and scaling up.

The minister added that the PPRA Transformation Fund also needs to be strengthened through various partnerships for maximum impact.

She says its current intake of participants in various programmes can be increased with sector partnerships.

“Earlier this year, I addressed the Small, Medium and Micro Enterprises (SMME) Incubation Programme. Organised by the Property Practitioners Regulatory Authority (PPRA), the gathering sought to highlight and celebrate progress made in transforming the property sector through empowerment. 

“The Community Schemes Ombuds Services’ (CSOS) Transformation Strategy is built on two critical pillars, which are capacity building and funding, as well as market access.

"This strategy requires collaboration with the sector, especially the Estate Management Agents (EMA). Currently, CSOS has signed the Memorandum of Understanding (MOU) with only three EMAs in the country.

Also, this year, the minister says she launched the National Housing Finance Cooperation’s (NHFC) driven Emerging Contractors and Developers Incubator Programme to increase participation of aspiring developers in the value chain.

“This underscores the department’s commitment to drive transformation and empowerment in the sector. I will request that the hosting organisation collaborate with all DHS Entities as our implementing arm.”  

The Department, through the HDA, has committed to developing 2,600 hectares of state-owned land already released for human settlements. Further, it says 1000 hectares of land are targeted for acquisition.

“Property ownership is central to the heart of South Africa’s development objectives.”  

Hence, Simelane says cabinet has approved the priorities of Human Settlements reflected in the Medium-Term Development Plans (MTDP) 2024-2029 as follows: 80 000 Title Deeds for households in all Provinces, 15 000 Social Rental Housing Units for households in restructuring zones, 314 000 Service Sites completed through various programmes, 140 000 For First Home Finance through disbursement of subsidies for households in the gap market, 237 000 housing units for households earning less than R3 500. 

She says these commitments call for improved integration in human settlements planning and implementation to achieve spatial transformation, improved sector coordination, and good governance, amongst others.

Lastly, the minister says the role of women, youth and persons with disabilities remains critical in transforming the property sector.

“The Department, on an annual basis, implements transformation programmes inscribed in the approved annual plans. This includes a budget set aside for the empowerment of Blacks, Women, Youth, Persons with Disabilities and Military Veterans.

"In the last two financial years, R9 billion of the various Human Settlements Grants went to companies owned by these designated groups. This budget set aside is monitored through various management structures on a quarterly basis.” 

In April, the KwaZulu-Natal Black Property Sector Association, known as KZNBPSA, hosted a Round Table Discussion featuring Thato Ramaili, which proved to be a resounding success, underscoring the critical role of collaboration in driving change within the property sector.

The organisation said that while significant strides have been made by leaders in the South African society, it is evident that the legacy of past inequities necessitates ongoing, intentional efforts to reshape the industry’s landscape.

It said change cannot occur overnight; it demands perseverance and collaborative action from all involved parties.

KZNBPSA said that by committing to this gradual process, they can ensure that future generations inherit a more equitable and transformed narrative within the property sector.

Independent Media Property