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HOUSING
in Southern Africa
Settlements
Infrastructure
FEBRUARY 2014
Modular
units
CONNIE SEPTEMBER MODDERFONTEIN 1 600 HA SALE 25 000 TOILETS
HOUSING
in Southern Africa
CONTENTS
NEWS
13
4 25 000 Concrete Panel Toilets
5 Banks penalise self employed
6 Thusanang Housing Project
8 R1,2 Billion for Settlements
10 Building Activity
HOUSING
12 Politically Correct – Connie September
14 Seeking Partners
15 Precast Slabs for Joshco
16 House Price Growth
18 Modular Houses 18
ROOFING, CEILINGS & INSULATION
20 Raising The Ceiling
21 Over 2 Million m² and Counting
24 Roof Truss Systems
PAINTS, COATINGS & SEALANTS
26 Metallic Coatings
BATHROOMS, KITCHENS & PLUMBING
28 Tile & Bathroom Trends
23
30 Bathroom Spaces
31 Perfect Shower Solution
32 Hottest Styles for 2014
BIZ PROFILE
34 As Easy As ABTs
33
INDUSTRY BUZZ, EVENTS & PRODUCTS
35 Sephaku Bags Cement
February 2014
ED’S NOTES
Nkandla - safe as houses
HOUSING
in Southern Africa
Everything possible has been done to keep unwanted visitors or THE TEAM
attackers at bay at President Jacob Zuma’s private residential country
EDITOR
estate, Nkandla.
Carol Dalglish
T
housing@crown.co.za
he upgrade has attracted much Ministerial Handbook, which has
condemnation from both the become essential if we are to curb PUBLISHER
public and private sectors, spending on luxuries by members of
Jenny Warwick
since it became general knowledge the executive.
that the Department of Public Works The amendment was first an- ADVERTISING
spent in excess of R200 million to nounced by President Jacob Zuma,
ensure the President can sleep safe in July 2009. In August 2012, the Brenda Grossmann
and sound at home. then Minister of Public Service and brendag@crown.co.za
Nkandla’s upgrade cost the same Administration, Richard Baloyi, an-
as it would cost at the going rate nounced that the process around the DESIGN
of R64 666, for a fully subsidised amendment of the handbook had Colin Mazibuko
RDP house – for 3092 much needed been classified as ‘secret’ though
houses. he gave an assurance that it would CIRCULATION
While most countries provide of- be declassified and made public
ficial residences for their Heads of ‘soon, very soon’. In October 2013, Karen Smith
State, in South Africa government the Minister in the Presidency, Collins
READER ENQUIRIES
minister are prepared to go the extra Chabane, also promised that it would
10 000 miles and the President has be ready ‘soon’. Radha Naidoo
four official homes at his disposal. In the meantime, taxpayers’ mon-
We heard the litany of excuses for ey has been used to purchase a R1,3 SUBSCRIPTIONS
the giant swimming pool spouted million vehicle for the North West Wendy Charles
forth by spin doctor, Mac Maha- Province Premier, Raymond Elisha.
raj as he attempted to douse the The MEC for Transport in the North PUBLISHED MONTHLY BY:
flames of dissention from the mut- West justified the purchase by stating:
tering masses. He does have a point ‘The car was purchased in compliance Crown Publications cc
though. Imagine if a fire broke out with the Ministerial Handbook, which Crown House
at the homestead. The whole of Nk- states that a car to the value of 70% of
Corner Theunis and Sovereign
andla would have to be rebuilt with the annual salary can be purchased’.
Streets, Bedford Gardens 2007
state-of-the-art technology, security, Opposition parties have made it
residences, cattle kraals, tuck shops clear that unless an amended Ministe- P.O. Box 140
etc - R200 million looks pretty cheap rial Handbook setting stricter expen- Bedfordview 2008
at the price!’ diture guidelines with sanctions, is
As the lights flick on at Nkandla, soon published, certain members of Tel: (011) 622 4770
energy costs are of little concern. the executive will continue to waste Fax: (011) 615 6108
While ordinary taxpayers curb their public money on niceties, and that
email:housing@crown.co.za
electricity usage – the citizens will be failure to table the Handbook will
footing Nkandla’s bill. show that government’s repeated as- www.crown.co.za
Perhaps the President will prac- surances that it will cut unnecessary
tise what government housing and spending, are meaningless.
settlement departments are always If anyone is up to this task - it is
PRINTED BY:
on about - energy efficiency – and Sisulu !
go solar! Tandym Print
With government elections loom-
ing, I cannot but wonder whether All rights reserved. No part of this
future Presidents of this country will material may be reproduced, stored
also expect to get their private resi- in a retrieval system or transmitted
in any form or by any means, without
dences upgraded, exponentially, at
prior permission from the publisher.
the tax-payers expense.
Still on the subject of taxpayers Disclaimer: Crown Publications can-
and what we pay for, the former not be held responsible for any errors
Minister of Housing, Lindiwe Sisulu or omissions whatsoever.
has come under attack as opposi-
tion parties and media quiz her on
the publication of the long-awaited,
amended Ministerial Handbook. AVERAGE CIRCULATION
So far, it has taken over four years (THIRD QUARTER 2013)
for the tabling of the amended
Carol Dalglish • Editor 3777
February 2014
News
25 000 panel toilets
T
he Amathole District Municipality issued a tender
for concrete panel toilets to be manufactured and
installed in rural areas of the Eastern Cape. With
almost 17 875 concrete panels used in the construction,
this makes it Rocla Sanitation’s largest single project.
So far, Rocla Sanitation has delivered 17 500 to site. The
average concrete panel weighs 102,5 kilograms and a
complete toilet weighs 705 kilograms.
Simon Wells, Business Manager: Sanitation at Rocla,
says, “The project started in March 2011 and in order to
offer local opportunities for employment, almost 70%
of the 200 people employed were women. We opened
a dedicated factory in Butterworth and utilised local
resources. and the factory will remain operational until
the project is completed in June this year.”
Rocla also provided on-site skills training.
Wells added that it is a mountainous area which, at
times, made deliveries quite treacherous. Donkeys were
used to carry the panels to site. Manufactured from a
patented concrete technology, the top structure can be
erected within 15 minutes. interior (900 mm wide x 1100 mm deep x 2000 mm high)
Community acceptance has been extremely high and conforms to all relevant standards. The safety of a dual
a second tender is currently in the adjudication phase. opening locking system means the unit can be opened
“We are delighted that the community is happy with the from the inside while locked from the outside.
aesthetics of the toilet structures,” says Wells. From manufacture to installation – depending on
The Rocla Sanitation concrete toilets can be relo- logistics and other contractor timescales – it takes 10
cated by households and are deemed the most suited days including concrete curing time for the concrete.
for the Expanded Public Works Programme. The reality Wells concludes, “This is a huge step forward for a com-
of the concrete panel design is that only six panels are munity, which in the past had no access to clean water or
required to complete the structure. This is a huge plus hygienic sanitation. This project is being funded under
for the quality and longevity of the product; the large the Municipal Infrastructure Grant Programme.” ■
Cape Town’s Rates stay low
energy options S
outh African home owners who were paying mort-
gage bonds in 1984 and 1998 still recall with dismay
how interest rates rose to 24% and 25%. And the fear
that rises of even half this size could recur has haunted
C
ape Town offers consumers new electricity many of those unfamiliar with the way the South African
service options in addition to existing purchas- economy operates.
ing systems. “This has often,” said Mike van Alphen, National Man-
The result of a tender for the provision of services to ager of the Rawson Property Group’s bond origination
buy prepaid electricity came into effect on 1 January, division, “caused people to warn their offspring about
2014. All existing prepaid electricity service provid- over-commitment and in some cases to advise against
ers have had their contracts renewed and a new cell buying altogether.”
phone vendor has been appointed as party to the The current low 8,5% interest rate has been in place
City’s energy efficiency drive. since July 2012 and major banking economists expect
Consumers can now make mobile purchases that rates will rise by more than 1% in the latter half of
via sms after registering on the provider’s website 2014. Big interest rate rises still seem unlikely for the next
www.itronenergy.co.za. Consumers will still be able three or four years, or possibly longer. Certainly no one is
to make mobile electricity purchases via EFT from expecting a growth rate over 3% for 2014, and inflation
www.prepaid24.co.za. Alternatively, consumers can seems containable below the 6% mark.
register on www.mobilepower.co.za. All credit cards Van Alphen pointed out that home owners budgeting
and Standard Bank, Nedbank and Absa debit cards for the future must accept that household expenditure is
are accepted on the site. Citizens can also purchase likely to run well ahead of the official ± 6% inflation rate
electricity units with their Mastercard or Visa credit since municipal rates and taxes, food, fuel and electricity
cards to buy via the internet from www.ibuy.co.za. are all running at double digit inflation figures.
Petrol station forecourts will offer scratch cards to The latest Absa reports indicate that South African
purchase prepaid electricity. ■ household debt will increase by 7% to 8% during the com-
ing year. This should be borne in mind when budgeting. ■
February 2014
News
Banks penalise self employed
Most South African bond originators have to deal
regularly with complaints from self-employed
people who have experienced difficulties in
obtaining bond finance.
A
ccording to real estate agents, small business pro-
fessionals frequently experience problems in being
granted 100% bonds and loan approvals often range
from 75% to 80% of the property’s value.
The banks are often more favourable to borrowers who
can provide a company balance sheet that shows sustained
success for a three year period.
Another important consideration are audited finan-
cials, which show profits before tax with an acceptable
percentage of these profits being ploughed back into the
business as retained earnings. Small business owners tend According to estate agents and brokers, a new company
to draw the majority of profits as shareholders’/members’ typically starts off well having secured highly profitable
remuneration, for business tax reasons, and then inject contracts and then experience difficulties when margins
sufficient capital back into the business as shareholders’ are squeezed. After initial success, a new business often
loans, in order to provide the necessary level of liquidity. acquires extra staff and vehicles. As overheads increase,
Whilst this provides the business with the required cash this makes the business unprofitable in leaner times. It
flow to continue trading, it does not provide a capital base has been noted that senior management tends to take
and often does not reflect sufficient cash reserves in the excessive earnings, so it’s important that directors balance
audited financials. salaries with cash flow reserves.
The banks’ reluctance to fund self employed profession- Self employed applicants should be circumspect and
als of new start-up businesses is because of the exception- show that their businesses are sustainable as banks
ally high failure rate of new businesses; almost 80% fold evaluate the individuals’ income as well as the company’s
within two years. profitability in determining mortgage bonds. ■
February 2014
News
Remodelling to help
Yeast City Housing and the Leyds Street
Congregational Church recently completed
the Thusanang housing project.
T
he Arcadia residential project,
close to Pretoria's inner city
amenities, has been aptly
named Thusanang, which means
‘to help each other’. Alison Wilson
from Yeast City Housing says that the
total project cost of R4,6 million was
funded with government grants and
loan finance.
The Leyds Street Congregational
Church and Yeast City Housing joined
with the Tshwane Leadership Founda-
tion, to complete the project as the
organisations have a shared vision
of providing low income housing and
supporting women at risk in the area.
Wilson says that the project is an
example of what can be done if lead-
ers work together in working for the
same cause. It is also an example of
how churches can be remodelled to
facilitate community development.
Thusanang offers 23 residential
units of which 13 are communal units
and 10 self-contained apartments.
The project includes a drop-in centre
for vulnerable women and girls, park-
ing facilities and two inner courtyard
areas. Architecturally, the project
has been integrated into the existing
church building and church hall with
focal points and shared open space.
Developed on top of the existing
church hall, Thusanang’s design in-
cludes energy efficient water heating
systems to reduce energy costs.
Yeast City Housing has champi-
oned inner city residential units in the
City of Tshwane. Wilson says they aims
to provide decent, affordable accom-
modation to low income and at-risk
people as well as to people with spe-
cial needs. “As people moved through
the Tshwane Leadership Foundation/
Pretoria Community Ministries, they
found jobs but the gap in the market
between the streets or a shelter and
decent housing was often too wide, so
we needed to add another rung on the
housing ladder,” says Wilson.
The organisation continues to cre-
ate and manage affordable housing
options for inner city citizens and of-
fers accommodation to beneficiaries
of housing subsidies who require
security of tenure. ■
February 2014
News
R1,2bn for settlements
Mega settlements projects get the go-ahead for the City of Cape Grant. Construction of Phase One will
start shortly and includes 463 rental
Town’s integrated human settlements. apartments. The project will posi-
tively affect the lives of thousands of
T
he City of Cape Town will in- Settlements Development Grant. Con- people in this impoverished area of
vest R1,2 billion for earmarked struction of 1 700 units will be built in Cape Town.
human settlements in the Phases One and Two. More than 1 300 families or approxi-
2014/2015 to 2016/2017 financial Fisantekraal Garden Cities Phase mately 5 200 people will ultimately
years. Council has approved seven Two Housing Project will cost approxi- be relocated from hostels to secure
human settlements projects identified mately R87,9 million, excluding funds two-bedroomed apartments in Langa
in the City’s Integrated Development from the National Treasury’s Urban with safe playgrounds for the children.
Plan. The approval forms part of the Settlements Development Grant. This Each unit will be equipped with a
necessary compliance requirements project will be developed on land kitchen, toilets, solar heated water
to include the projects in the City’s owned by Garden Cities, a non-profit systems and showers.
Medium-Term Expenditure Frame- organisation. The City will allocate The City’s Hostel Transforma-
work for the 2014/2015 to 2016/2017 funds for the development of subsidy tion Programme consists of 15 000
financial years. housing and for the provision of as- units to be built in Langa, Gugulethu
The majority of the projects are sociated infrastructure and facilities. and Nyanga.
scheduled to commence in the The Izimamo Yethu Phase Three Projects estimated at more than
2014/2015 financial year. Projects housing project will cost an estimated R600 million have been approved for
include new housing developments, R105 million in the 2014/15 to 2016/17 the upgrade of the living conditions
the continued transformation of the financial years, excluding funds from of backyard dwellers and residents in
apartheid-era style hostels in Langa, the National Treasury’s Urban Settle- informal settlement areas.
and ongoing upgrades to improve liv- ments Development Grant USDG and In terms of the Municipal Finance
ing conditions of backyard dwellers the Human Settlements Development Management Act, municipalities must
and residents in informal settlements. Grant. obtain Council approval for capital
The latter is subject to the availability The Council has also approved projects where the total is greater than
of funds. R320 million for the further upgrad- R50 million
The approved allocation includes ing as part of the City of Cape Town’s “Although we are faced with an
three housing projects, in Macassar Hostel Transformation Programme. extremely high rate of urbanisation in
in the Helderberg area, Fisantekraal This has been earmarked for Phase Cape Town, we will not give up in our
in Durbanville and Imizamo Yethu Two of the Langa Hostels Community endeavours to create a caring city by
in Hout Bay. The Macassar Housing Rental Unit Projects, excluding funds providing housing opportunities,” said
Project Phase One, will cost approxi- from the National Treasury’s Urban the City’s Mayoral Committee Member
mately R62,5 million excluding funds Settlements Development Grant and for Human Settlements, Councillor
from the National Treasury’s Urban the Human Settlements Development Tandeka Gqada. ■
February 2014News
Modderfontein land sold off
The Competition Commission has approved of AECI
and Heartland Properties’ sale of 1 600ha vacant land
in Modderfontein, to a Chinese property development
company.
S
hangha Zendai Property (Zendai) aims to develop
the mixed use site for residential, retail, commercial
and industrial use. The sale has been approved on
condition that the Chinese investor reduces the period of a
restraint of trade imposed on the seller from 10 to five years.
In its investigation, the Commission found that the
agreement between AECI and Zendai contained a re-
straint of trade clause, in which AECI undertook not to company and that the agreement
engage in the business of property development in the between the firms does not allow the con-
Modderfontein area. struction of social housing, which undermines the
In Competition Law, a restraint of trade can often amount government’s development policy of community
to prohibited practice of market allocation in contravention integration, regardless of financial status.
of the Act. The Commission said the 10 year restraint period The Commission advised the parties that it lacked
was too long, unjustified and likely to frustrate potential re- jurisdiction over the concerns raised. The complainants
entry by the seller in the Modderfontein area. were advised to lodge these concerns with the respec-
The acquired land consists of 1 600 hectares of vacant tive agencies.
land, partially developed land and leased structures. It The Commission’s investigation found that the ac-
also consists of purpose-build structures built by the cur- quisition by the Chinese investor will also not result in
rent lessee. The vacant land has been zoned for residential, retrenchments as the land has been bought as a going
industrial, retail and commercial use. concern. The investor also undertook not to retrench any
Concerns were raised by market participants relating employees and not to change the terms of conditions
to environmental pollution, the sale of land to a foreign of employment. ■
February 2014Housing
Building activity
under pressure
Levels of residential building activity in the South African
market for new housing remained subdued in the first ten
months of 2013, with year-on-year growth in activity levels in
both the planning and construction phases between 3% and
4% over this period.
A
partments and townhouses came on the back of ever-increasing focus on the supply of new housing
remained the best-performing building costs in the first ten months of across the market is a reflection of the
categories as regards growth in 2013. The cost per square metre of new affordability of housing and mortgage
residential building activity till Octo- housing built between January and finance against the background of
ber 2013. A total of almost 1 120 000 October 2013 increased by 9,4% y/y, the state of household finances and
private sector-financed new housing an average of R5 123. The continued changing lifestyles. ■
units were built countywide from the
beginning of 1994 to October 2013, of
which 821 000 units, or 73,3% of the to-
tal, were constructed in smaller-sized
houses of less than 80m² and higher
density apartments and townhouses.
October 2013 saw the number of
new housing units, for which build-
ing plans were approved, decline by
1,9% year-on-year (y/y) to 5 205 units,
but rise by as much as 921 units from
September. This month-on-month
increase in the volume of plans ap-
proved occurred in houses as well as
flats and townhouses.
According to Absa Property Analyst,
Jacques du Toit, new housing con-
struction growth of 28,4% y/y was re-
corded, with the volume of units com-
pleted rising to 4 637 in October 2013.
This was 1 214 units in September
2013.
As in the case of the planning
phase, all three categories of housing
contributed to the higher volume of
new housing in October compared
with the corresponding month the
year before.
The first ten months of 2013 saw the
real value of plans approved for new
residential buildings rise by 14,3% y/y,
or R3,5 billion, to R27,8 billion from
R24,3 billion in the corresponding
period 2012.
The real value of residential build-
ings reported as completed increased
by 11% y/y, or R1,9 billion, to R19 bil-
lion in the period January to October
2013 from R17,1 billion in the same
period during 2012..
The above-inflation rise in the real
value of residential building activity
February 2014February 2014
Housing
Politically correct
With the upcoming elections looming most cabinet ministers and
executive members are hitting the campaign trail in a bid to retain
their seats. Housing in Southern Africa caught up with the Minister
of Human Settlements, Connie September, and posed some
questions on housing issues.
February 2014Housing
Q : Minister, government Q: Will the Department of Human A: Government, including the De-
seems to have shifted from Settlements provide cheaper forms partment of Human Settlements, is
RDP beneficiary single of RDP fully subsidised housing fully committed to implementing the
dwelling housing to providing units that are more energy ef- National Development Plan (NDP).
social housing and other forms of ficient, and perhaps use alterna- The Integrated Human Settlements
grants? tive building technology systems rollout plan is directly linked to the
instead of conventional brick and NDP, and the Integrated Urban Devel-
A: Government has always rec- mortar? opment Framework (IUDF) furthers
ognised the complexity of housing the objectives of the NDP.
demands so our policies include A: Many examples of alternative tech- They cannot be viewed as sepa-
providing a range of housing op- nology housing projects have suc- rate and opposing plans. Further,
tions that address the needs of cessfully been implemented through government believes that no sector
specific market segments. These the Housing Subsidy Scheme. Gov- on its own will be able to address the
policy options address the housing ernment remains committed to housing challenges of the country.
needs based on the socio-economic exploring alternative building tech- Consistent with the NDP, partnerships
circumstances of South Africans. It is nologies and a new, energy efficient between government, the private sec-
within this policy that government house has been designed and ap- tor and NGOs are critical to facilitate
has delivered over three and a half proved, and will be launched from the implementation of the depart-
million housing opportunities in the April 1, 2014. The new houses will be ment’s programmes.
last twenty years. There is no shift designed to be more energy efficient
in policy or emphasis; Government thus reducing the cost for services to Q; Are integrated human settle-
will continue to implement existing the owners. ments working?
policies based on specific needs and
available resources. Q: In Gauteng, for example, the A: Good progress has been made
number of affordable housing with establishing integrated human
Q: Minister Sexwale had often development units provided has settlements. Recent projects include:
said that government could reduced from 40 000 units to 5 The Cornubia development in the
not continue to keep hand- 000 units per annum. Will the new eThekwini Municipality. This project
ing out free RDP housing as credit amnesty have the impact is located close to transport hubs and
this was unsustainable. Will to kick-start this sector? Minister, places of employment in Umhlanga,
RDP housing become a thing please comment on the fact there which facilitates social integration
of the past? Will it fall away has almost been a moratorium in with suburbs such as Phoenix, Ot-
by 2020, or 2030? housing delivery in the Gap and tawa, KwaMashu. The project has
Affordable sectors R235 000 to been able to ‘crowd-in’ private sector
A: Government has, since 1994, made R850 000. support and other institutions.
a significant impact in addressing At Lephalale 5 000 units are being
housing needs and we recognise that A: Our understanding is that the gap built - as economic opportunities
there are ongoing challenges, which market is faced with two challenges, generated through the construc-
need to be addressed. The provision lack of appropriate stock and the in- tion and ongoing operations at the
of sustainable housing opportunities debtedness of the gap market target Medupi, Matimba and Exaro power
is inextricably linked to the broader group. While the credit amnesty will plants roll out.
economic issues of unemployment, assist credit worthy customers with Future projects will place empha-
poverty and inequality. Housing for tarnished credit records, govern- sis on building integrated human
the very poor is not a mere commod- ment’s revised home loan assistance settlements that address the apart-
ity - it is government’s strategy to programme, the Financed Linked In- heid spatial legacies.
address poverty and provide a secure dividual Subsidy Programme (FLISP)
environment for families to live and will also contribute to improving this Q: Since taking over the portfolio,
for social stability. market segment. The National Hous- what has been your biggest chal-
Government will continue to ing Financed Corporation (NHFC) and lenge in the short term?
provide subsidy financed houses and the nine provinces will assist in rolling
RDP fully subsidised housing, which out the FLISP programme. A: As indicated in Outcome 8, the key
cost R64 666 per unit excluding any challenge is creating sustainable hu-
provisions for geotechnical costs Q: What is the key housing issue man settlements and improving qual-
(where required, in a fiscally respon- facing the Department of Human ity of life. In realising this objective,
sible manner. Settlements and are you firmly the key priorities in the short term
behind the National Development include: Together with other govern-
Plan? Housing in Southern Africa ment departments and municipali-
has attended many housing confer- ties, improving the provision of basic
ences and it appears this will have services to informal settlements.
to be driven almost entirely Improving the quality of housing, and
by the private sector. the property market. Efficient utilisa-
Will the National De- tion of land for developments. These
velopment Plan short-term challenges must be seen
be overtaken by in the wider context of improving the
t h e I n t e g ra t e d human settlements for the poor in or-
Urban Development der to facilitate better economic and
Framework? social outcomes for the country. ■
February 2014Housing
Seeking
partners
Public private partnerships
can boost the GPF’s efforts
to provide housing, says
Gauteng Partnership Fund
(GPF) Acting CEO, Boni
Muvevi.
S
ince its inception, GPF’s goal
has been to facilitate, secure
and optimise investment into
affordable housing within the prov-
ince. To date, it has facilitated invest-
ment into more than 22 000 units,
having leveraged more than R2,4
billion worth of external funding.
Muvevi says the fund shares fi-
nancing risks with co-funders and
takes a subordinated security posi-
tion on projects. “Over the years,
we have seen that the private sector completed before a recommendation vide affordable rental housing for
would like to share the risks on proj- is made to the investment committee. householders earning up to R15 000
ects with government. The GPF is a “Investors and external parties per month. Rentals range between
provincial platform created to enable can be assured that we have efficient R1 000 and R4 500 per month. Recent
such partnerships.” processes and governance structures research confirmed that units that
“Government resources are not that comply with legislation and best perform best in the rental sector
sufficient to fund and address all practice,” says Chief Financial Officer, are those that cost between R2 000
housing needs therefore a partner- Komathie Govender. and R5 000 per month.
ship approach is more sustainable. She says that though government Muvevi says the residential rentals
We play a role similar to a middleman, has been criticised for its delays sector in the affordable housing mar-
where we are able to translate gov- in processing payments, the GPF ket offers good returns, of between
ernment’s needs, and we are able to strives to ensure that its payment 8,5% and 9% per unit after tax.
understand the risks associated with turnaround times are well within 30 In terms of investment guide-
housing projects and can mitigate days, as required by legislation. lines, the GPF funds projects with
those risks with the private sector.” In July 2010, the GPF started an a minimum of 15 units. The project
The GPF has been affected by the initiative called the Entrepreneur Em- needs to be close to amenities, areas
economic crisis as some of its funding powerment Property Fund through of employment, shops and public
partners have lost interest in funding which it has supported 44 companies transport. The loan-to-value for the
affordable housing projects. “We had to date. The initiative is an incuba- projects should be below 100%.
to turn our attention to development tor programme aimed at promoting Financing terms are flexible and the
finance institutions to assist in co- participation by previously disadvan- interest rate pricing is linked to the
funding projects. We are seeking to taged entrepreneurs in the affordable three-month Jibar (Johannesburg
partner with institutions that can rental property market. Interbank Agreed Rate).
provide senior debt funding,” says “The EEPF is aimed at entry-level The repayment terms of the loans
Muvevi. black entrepreneurs and companies are between 15 and 20 years, depend-
The GPF says it wants investors owned by historically disadvantaged ing on the company’s BEE status. The
to know that the GPF processes are individuals, who provide rental for GPF funds between 20% and 30% of
above board. There are preliminary households in our target market. project costs. However, there is a cap
assessments for every application. Participating entrepreneurs must of maximum exposure per company,
A full assessment on the feasibility demonstrate that they have the and it can only fund up to 10% of the
of a project is also conducted, using commitment and potential to grow capital held, which translates to R48
external consultants, engineers and and successfully complete a project,” million.
evaluators, among others. A sensi- says Acting Chief Investment Officer, For further investor information go
tivity analysis of the project is also Vinolia Mashiane. GPF aims to pro- to www.gpf.org.za ■
February 2014Housing
Precast slabs for Joshco
C Delivering social housing projects for the public sector is
onstruction products like pre-
cast hollow core concrete floor
slabs from Elematic South different from delivering private sector projects, as deadlines
Africa (ESA), which can be installed are driven by political imperatives rather than project time
quickly and accurately, make a great
deal of sense. lines.
ESA is currently supplying 90% of its turnover from government and the v-joints fit together without
10 000m2 of hollow core concrete work, is the main contractor at City gaps, which results in an aesthetically
slabs to City Deep Green, a Johan- Deep Green. pleasing finish.”
nesburg Social Housing Company The project situated on Greater- ESA and Motheo, who have worked
(Joshco) project in City Deep. This mans Street will provide 220 housing together on several projects and
is one of several projects being un- units by June 2014, and a further 328 are currently working together on
dertaken by the City’s social housing units by May 2015. another Joshco project in Soweto,
provider. The four storey walk-up blocks believe that reliability and an open
Johannesburg, a world class Afri- include one and two bedroom units. working relationship are key to doing
can city, is often seen as a beacon of Raft foundations have been used business.
hope and opportunity by people in on the site because of the ground ESA manufactures hollow core
search of work and there is a continu- conditions. Following the structural concrete slabs at its ISO 9001 accred-
ous demand for decent accommoda- brickwork, Elematic precast concrete ited facility on the East Rand.
tion, which is why many of the City’s slabs were used on three levels and “Our in-house engineers ensure
old hostels have been converted into finally topped with Inverted Box Rib that the product specifications meet
social and affordable housing rental (IBR) roof sheeting. the requirements for each project and
stock. John Whiteman from Motheo the slabs are manufactured accord-
City Deep, in particular, has always Construction Group explains that the ingly. Dedicated installation teams
been a central node for labour and as project engineer specified precast transport the slabs to site and install
a result, Joshco has been developing hollow core concrete slabs as they them. Our SABS certification assures
properties in the area that are owned are faster to erect than the traditional clients of the quality of our products,”
by the City of Johannesburg. The ac- cast in-situ concrete floor slabs. says Craig Webber, Director at ESA. ■
commodation is for low income earn- “ESA was appointed because of its
ers, who qualify for a rent subsidy. reputation for quality and price,” says
The social housing provider has a Whiteman. “The accuracy of the slabs
number of residential properties in and the finish are always
its portfolio. good, soffits are neat
The Motheo Construction Group,
an established BEE construction com-
pany which generates some
February 2014Housing
House price
growth
February 2014Housing
T
he FNB House Price Index re- year forecasting no interest rate cut,
mained well-above levels of a or further stimulus from the SARB,
decade ago, with the real price as consumer inflation continues to
average for 2013, 42,6% above the move around the higher part of the
real average price for 2003. However, 3-6% target range.”
compared with the real price peak in Loos points out that while a slow
2007, the 2013 average real price was economy and lack of interest rate cuts
still 18,5% lower. could be expected to have a moderat-
According to the FNB In nominal terms, the 2013 aver-
age price was 145,2% higher than the
ing influence, there are two key fac-
tors that could influence the pace of
House Price Index, the 2003 price level, but only 19,3% above growth in residential demand in 2014.
the 2007 level. Firstly, whether banks will begin
average house price Therefore, real price levels in 2013 to view mortgage lending as a poten-
for 2013 rose by 6.8% remain above the levels of a decade
ago but still reflect a cumulative
tial source of asset growth after the
unsecured credit boom has all but
compared with the downward correction since 2007. ended. The National Credit Regulator
The FNB Valuers’ Market Strength
average price for 2012. Index has not yet quite reached the
data points to accelerating growth in
mortgage lending in recent quarters,
This indicated a slight crucial level of 50, implying that the
valuers’ aggregated supply rating
as well as cutbacks in other forms of
credit granted. So, household credit
slowing in growth remains stronger than demand. The granted in the third quarter of 2013
index nevertheless points to a further
on the revised 2012 improvement in the demand-supply
grew by a moderate 6.8% year-on-
year. The mortgage component grew
average house price market in 2013, rising by 3% on 2012. by 20% in value, and has been accel-
“We have not yet seen strong real erating in recent quarters.
growth of 7.1%. In real house price growth since the 2008/9 The second key factor deals with
recession, despite improved levels
terms, adjusting house reached in 2011,” says John Loos
the supply side of residential prop-
erty. The recorded number of resi-
prices for consumer Household & Property Sector Strate- dential units completed for the first
gist at FNB Home Loans. 10 months of 2013 rose year-on-year
price inflation, 2013 In order to look forward into 2014, by a mere 3,2%, and the level of
showed a slightly lower it is probably necessary to consider
some of the economic trends through
building activity remains almost half
of what was reached at the height of
rise of 0,8%, compared 2013. Loos says that this leads us to the residential building boom in 2007.
believe that we should not expect to The result of the slow recovery in
to 1,3% in 2012. see a large increase in the average building activity shows residential de-
rate of house price inflation on that of mand still rising, but supply has also
2013. The reality is that South Africa been more constrained according to
has an anaemic economic growth, FNB’s valuers. Loos says that when
with the 2013 average real economic one shows the demand and supply
growth rate looking set to come in at ratings on a monthly basis the gap
close to 2%. Such a rate would mean is steadily closing between the two.
the second consecutive year of slow- “The net result shows that despite
down in economic growth since the a slowed economy in 2013, other
3,5% rate was achieved in 2011. factors, most notably some possibly
Slowing economic growth, in turn, more relaxed lending by banks as
is influential in slowing the pace a group, and a constrained supply
of employment, wage growth and side of the residential property sec-
thus household disposable income tor, lead us to lift our 2014 average
growth. So, real household dispos- house price growth forecast to 9%.
able income growth peaked at an In 2015, however, we would expect
impressive 5,2% in 2011, but it looks price growth to once again slowdown,
set to be nearer to 2,7% for 2013. based on our forecast that interest
Slowing real disposable income rates could start to rise in 2015.”
growth has already taken its toll on He concludes, “Therefore, the
consumer confidence, with the FNB/ residential market of 2013 could
BER Consumer Confidence Index be described as a ‘comfortable and
showing negative readings for six out well-balanced market’, which was
of the last seven quarters. still largely free of extreme or crazy
“We are entering 2014 on a broadly behaviour and certainly not booming.
slowing economic real disposable Despite a weak economy that looks
income growth path since 2011, likely to persist, supply constraints
which has already had a negative could cause 2014 house price per-
impact on overall growth in consumer formance to be slightly better in our
expenditure. We also enter the new view.” ■
February 2014Housing
Consumer surveys
show that
in countries
with fast-
growing
populations
there is a huge
demand for high
quality, affordable
housing, which
could benefit
from modular
housing
using precast
concrete
technology systems.
February 2014Housing
Modular houses…
S
outh African project man- the very last part, the entire finished ficient and economical execution of
agement solutions company, plant was produced in Hockenheim their modular housing projects.
UkuZwana, a subsidiary of before being packed into 34 con- Upcrete offers pre-aerated self-
UkuZwana Holdings, teamed up with tainers and shipped by sea to South compacting concrete (SCC); complete
German-based Reymann Technik America. The total shipment weighed filling of even the most awkward
and Ratec GmbH to offer economic, 500 tonnes. geometries; formwork filled with
efficient, precast concrete produc- From start to finish, it took 10 concrete pumped upwards from
tion methods. UkuZwana Building months to build the manufacturing below; in situ production of complex
Systems have been approved by plant. After completion of the houses, concrete units; smooth form finish
Agrément South Africa. rather than demolishing the produc- surfaces all round; no screeding
UkuZwana’s CEO, Thomas Swana, tion plant, it will be converted into the or smoothing of surfaces; minimal
says that this system puts them way council offices and shopping centre quantities of concrete residue; maxi-
ahead of the competition in terms for the new settlement.. mum dimensional accuracy of parts;
of quality and flexibility. So far, the Modular housing technology offers quiet, minimal waste of materials, ef-
Ratec and Neopor Cellular Light- clear benefits. ficient and ecological concrete parts
weight concrete had been used on Over the past 40 years, Wolfgang production and shorter formwork
several Cape Town projects with more Reymann, a one-man engineer’s of- laying times.
in the pipeline. fice has grown into a whole group of Jorg Reymann says, “With this
Precast modular units have been companies whose ideas and prod- system, we set new standards for
produced by Ratec on projects ucts have revolutionised the entire the integrated planning of work with
throughout the world, the most nota- precast concrete production process precast concrete. Once you know
ble being in Peru at Ica. Almost 3 600 again and again. “Our drive to make the principle, it seems like simplicity
houses were built on the 10 hectare everything that little bit better further itself, and you wonder why it took
site. The houses are earthquake and reinforces our high-level process so long to come up with the idea of
storm proof and provide a pleasant engineering expertise, creativity and simply turning the world on its head.
interior climate. In collaboration with strategic thinking,” says Reymann’s All this becomes possible with the
a well-known Peruvian architect, Rey- sons, Mathias, Andreas and Jörg. ‘change of perspective’ inherent in
mann Technik designed the precast The Peru project was a partner- Upcrete technology, which involves
concrete plant. ship between Llaxta and Reymann filling the formwork with free-flowing
From the first CAD drawings to Technik. After initial meetings, it self-compacting concrete (SCC) from
quickly became clear that Reymann below by pump. It offers the great
Technik’s expertise, modular form advantage that the freshly concreted
units and Upcrete technology offered finished element can be quickly re-
the perfect solution for a residential moved from the formwork and trans-
housing project of this scale. ported or reworked as necessary.”
The basic idea of the modular Thomas Swana from UkuZwana
housing system is the monolithic says, “There are a number of precast
production of a room module which options in South Africa and we de-
combines the supporting walls, veloped them further using Ratec’s
floor and beams and a 3D modular molding and magnet systems, filled
roof. The maximum dimensions are with Neopor Cellular Lightweight
determined by the future residents’ Concrete (CLC) systems. It offers over
needs and transport limitations. The 400% greater thermal efficiency com-
modular units can be erected in a very pared to conventional concrete, 60%
short time. less of the weight of conventional
A core module including plumb- concrete while remaining structurally
ing, wiring and sanitary fixtures and adequate up to and including five sto-
fittings facilitates rapid construction rey. The product can be easily cut and
work. The rigorous development of modified on site, it is non toxic, non
this concept, in conjunction with combustible and is similar to ordinary
Upcrete technology and the new concrete, which means it behaves in
modular form units, has opened up the same way and its overall strength
entirely new horizons for the industri- continues to improve with age.
al manufacture of residential space. Swana says that UkuZwana has
Reymann Technik offer clients ev- partnered with EduQ8 International
erything they need, from engineering to deliver social and community
production plants to project manage- projects.
ment, feasibility studies and turnkey For further information contact
facilities, to ensure the smooth, ef- UkuZwana Holdings, on 021 797 5905.
February 2014Roofing, Ceilings and Insulation
Raising the ceiling
N
ew and innovative products
are regularly added to suppli-
Building or renovations costs can run into huge sums of money,
ers’ lists and it is advisable to so it makes sense to shop around for the best possible product,
assess these and not automatically
choose what has been used in the
cost-wise and efficiency-wise, before committing to a product,
past. says Pieter van Heerden, Managing Director of PVC Ceilings
For example says van Heerden, South Africa.
If fitting new ceilings in a renovated
home or a new build, gone are the
days when gypsum boards would be Interlocking PVC panels offer the proof, waterproof (no more damaged
the automatic choice; PVC ceilings smooth surface that tends to be pre- ceilings from burst geysers), easy to
are an ideal substitute for a number ferred by interior designers and deco- clean and no further maintenance is
of reasons. rators and that cannot be achieved necessary after installation.
They are manufactured using PVC with other ceiling materials, which “Many developers are realising the
resins and auxiliary materials and are leave splicing gaps between the benefits of using PVC ceilings,” says
made in lengths of 3.6m, 4.7m and 6m plates. van Heerden. “In the past year three
lengths and are 250mm wide. The boards come in a variety of Gauteng schools, a housing project
These extremely practical ceiling colours as well as gloss and matt fin- with 108 units in Buccleugh and two
systems are suitable for any indoor ishes, which add to the savings made, residential projects in Kimberley used
area requiring a fixed, non-porous, as there is no need to use a screed them in 582 houses.
non-fibrous and non-absorbent render or paint on the boards. This, Ceiling boards are available
ceiling. in turn, also saves on labour costs, throughout South Africa, and can be
Apart from being lightweight and adding to the cost-efficiency of the purchased from selected branches
easy to install, they are also efficient product. of retailers such as Mica, BUCO and
insulators in summer and winter - ow- According to van Heerden, PVC Cashbuild.
ing to the hollow core structure of the ceilings have additional features in- A comprehensive list of retailers is
panels - and can reduce energy con- cluding: antifungal properties, corro- available, email: sales@pvcsa.co.za
sumption in the home by eliminating sion resistance, fire retardance (B/B1/ or for further information visit www.
the need for heating or cooling it. B2 SANS 428). They are also termite pvcsa.co.za ■
February 2014Roofing, Ceilings, Insulation & Cladding
Over 2 million m² and counting….
R Dezzo Roofing offers a viable and cost effective alternative to
oofing solutions and building
material supplier, Dezzo Roof-
ing has supplied two million conventional timber roof systems.
square metres of products through-
out the continent in the last 13 years. pioneered lightweight steel roof that has been shown to last four to
Initially, Dezzo Roofing created the trusses, specifically designed and six times longer than the same gal-
lightweight steel roof support system manufactured for concrete roof tiles. vanized material (Australian testing).
specifically for the South African Bandon Harding from Dezzo Roof- Trusses are manufactured by highly
market, but with its huge success, it ing says, “Our product range caters trained steel artisans and are as-
has gradually spread to neighbouring for all roofing styles – from basic sembled in jigs that ensure a 100%
countries. The product caters to all lattice and girder beams to carry perfect shape and size every time.
roofing styles - from basic lattice and profiled steel sheeting, to trusses Battens and purlins are cut to length
girder beams to concrete roof tiles. that can accommodate concrete roof to suit every roof thus greatly reduc-
The system has proved popular tiles, pressed steel tiles, or any of the ing on-site cutting and waste.
with residential developments, retail profiled steel roof sheets. The roof trusses are lightweight
precincts, entertainment and sport- Supplied in a knockdown kit, and easy to handle. The roof system
ing facilities, educational institu- which includes trusses, battens, tiling is not susceptible to termite or borer
tions, industrial plants, commercial battens, beams and purlins, all the infestation. Components will not rot
office parks and the leisure industry. components for the steel roof sup- or warp (like timber). Easy erection,
With growing demand for products, port system are manufactured from enabling a quicker installation time.
Dezzo has invested in six roll-forming zinc and aluminium coated steel as Flexibility in terms of roof designs
machines as well as a full-cutting and it has proved to be stronger, lighter and roof shapes. Can be used with
bending facility for its Durban produc- and more economical to use than concrete tiles, steel sheeting, pressed
tion plant. traditional roofing system materials. steel tiles and fibre cement sheeting.
The company has been involved Since 2000, Dezzo Roofing has sup- The systems comply with all the
in a number of projects ranging from plied products to Angola, Mozam- relevant codes and are designed by
residential houses to rural schools, bique, Zambia and Botswana. a registered Professional Structural
social and recreational facilities to The advantages of steel roofing Engineer. Dezzo Roofing is a mem-
the hospitality sector, retail precincts systems include: Engineer designed ber of the South African Light Steel
and commercial and industrial proj- (including Professional Indemni- Frame Building Association (SASFA).
ects. Having undertaken research ty Insurance). Manufactured from For further information, go to www.
and development in Southern Af- aluminium and zinc coated steel dezzo.co.za ■
rica and Australia, Dezzo Roofing
February 2014Roofing, Ceilings, Insulation & Cladding
Roofing advisory services
T The Advanced Roof and Building Technology
h e ‘A RT F
Guide to
S a fe a n d Foundation (ARTF), an industry support and advisory
Successful Roof
Maintenance
institute, offers valuable advice and guidelines on
Planning, Con- roof construction and maintenance planning.
tractor Procure-
ment and Proj-
ect Execution’ processes often get hurriedly com- sufficient drying and curing
manual sheds pressed and the job rushed. times, are followed.
light on many For example, the roofing special-
ist may be forced to commence work • Choose the sheeting supplier
of the traps and
before the structural steelwork has with some care. There are a
pitfalls that have
been fully QA signed off and snagged. number of products that have
earned the roof-
This can result in poor perfor- greatly enhanced clip systems
ing industry the
mance in the sheeting and steelwork with much higher stability
reputation of be-
as well as the appearance – and is against wind, leaks etc.
ing ‘a minefield’.
It is probably impossible to rectify. • Some of those products
not an exaggera- Good contractors often mutter include: Kliptite, Novotexi-440
tion to assume that about the ‘bad flashing detail’ from and Craft-Lock. Use the best
some degree of mis- architects, etc. supplier for the project to
application on large Often the design generated from process and assist with the
projects has become catalogues and virtual programs are specifications, execution and
the norm, rather than inadequate and this have been a com- QA processes throughout the
the exception! mon source of leaks. project.
This can result in For developers and entrepreneurs
to go directly to the marketplace and • Chose the contractor with even
thousands of roofs that
employ their project personnel can greater care and source from
leak badly, blow off in high
becomes costly and high risk. an independent advisory
winds, collapse structurally,
ARTF members and associates organisation such as ARTF or
corrode extensively early
have now studied case histories and any other organisations listed
in their lives, cause deaths
introduced the ARTF PIM Public Infor- below.
or serious injuries, or fail to
the point where full, or partial mation Manual. Here are some professional organisa-
replacements are needed at a tions who can assist with advice and
fraction of the way through the Guidelines: recommendations:
roofs’ lifespans. • It is important to appoint a suit-
Long term, this is costing the ably qualified specialist, who ARTF - The Advanced Roof and Build-
industry, owners and developers will in turn undertake the roof- ing Technology Foundation. contact
billions of Rands. ing works professionally and Rick Norwood on 079 896 4781 or
Rick Norwood from ARTF, a non successfully, using the correct email: founder@artf-scrace.com or
profit organisation, says that unreal- techniques, materials, fasteners go to www.artf-scrace.com
istically low funding and inadequate and accessories. SAMCRA – The Southern African
time frames often lead to short cuts Metal Cladding and Roofing As-
• It is important that tender
and risk taking in an effort to meet sociation, contact Dennis White on
specifications have been read
budgets and completion dates. De- 082 568 1421 or email:denniswhite@
properly and applied.
sign and specifications are stretched saisc.co.za
to the limit to save time and costs, • Apply the required number of SAISC – The South African Institute
roof sheeting and accessory types, coats/applications of appropri- of Steel Construction will assist,
gauges and steel structure spans. ate, reliable and long lasting contact Spencer Erling on 011 726
The ‘save at all cost’ approach also products from a reputable sup- 6111 or email:info@saisc.co.za or go
results cutting the input of consultant plier. to www.saisc.co.za
project planners, engineers and QA SASFA – The South African Light Steel
officers to a minimum and a lack of • The contractor must have an es-
Frame Building Association, contact
daily checks by a project manager tablished and effective internal
John Barnard on 011 726 6111 or
or QA this can be disastrous, when quality control and quality
email:info@sasfa.co.za or go to www.
a thousand errors, corner cuts and control plan, as well as an ad-
sasfa.co.za
oversights have been carefully hid- equate, legally compliant safety
ITC – Institute for Timber Construc-
den, camouflaged with sheeting, system.
tion, for further information contact
cheap paint etc. Norwood says that • The contractor needs to ensure 011 974 1061 or email: enquiries@
good planning and flow sequencing that correct procedures, such as itc-sa.org or go to www.itc-sa.org ■
February 2014February 2014
Roofing, Ceilings, Insulation & Cladding
Roof truss sys
S
outh African subsidiary of the
world’s leading timber and Whether simple or complex, practical or aesthetic, timber
steel roof truss systems, MiTek, and steel truss systems have played a vital role in the built
has played a leading role in pioneer-
ing computer based technology to
environment.
enhance the versatility of timber
and steel roof structures, says Uwe all aspect of timber and light gauge across all markets. MiTek offers a wide
Schlüter of MiTek Industries South steel roof design and offers assistance range of Ultra-span and steel wall-
Africa.MiTek’s manufacturers have at the feasibility stage of the project. framing system applications that can
developed numerous jigging systems This includes: Assessing the most be used in a variety of projects.
that ensure that every configuration economical way of conceptualising
of truss is maintained with absolutely the roof structure.
Low cost projects
accuracy. Providing the team with names Using the Ultra-Span roofing sys-
Collectively the company manu- and contact numbers of the most ap- tem will result in a reduction in
factures over one and half million propriate truss fabricators for the job. the amount of trusses needed on a
trusses each year and the products Assisting with preparing and pro- project because of the products due
have been tested for performance and viding specialist documents to ten- to the larger truss spacing of 1,1m to
reliability by the CSIR or SABS. der, as well as advising on the adju- 1,2m. This also saves time in the erec-
The introduction of patented steel dication of tenders. tion of the structure as fewer, lighter
profiles, which can be used as alter- Roof inspection by a MiTek engi- trusses (about 14kg/truss or 4kg/
natives for timber, namely, the steel neer offers assurance of the design m² roof area) are handled and posi-
batten, steel purlin and steel runners quality and of the completed roof tioned. An additional benefit is that
have enjoyed success worldwide. structure. there is no wastage of any materials,
Light steel frames are being used thereby leaving the site clean after
Professional services increasingly, the low mass of light- completion of work. This product
MiTek’s professional structural engi- gauge steel (LGS) and a relatively sta- is ideal for all tiled or sheeting roof
neering service has conducted exten- ble steel price have ensured a steady structure applications and can even
sive research and development into increase in demand and specification contribute towards site employment.
February 2014You can also read
