Big demand for beginner houses
| AFFORDABLE, fully bonded housing developer RBA Housing
hopes to complete 1037 houses this year to cater for the strong demand
from emerging middle class buyers.
RBA Housing, which specialises in developing properties priced between R250000 and R700000, says it has 600 houses under construction in 20 project areas in Johannesburg, Tshwane, the Vaal Triangle and Polokwane.
The size of these properties vary from 40m² to 80m².
CEO David Wentzel says the Banking Association of SA estimates that 132000 units a year need to be built in the R250000- R700000 price bracket to keep up with the demand.
To this end, t he company has enough land available to keep it busy with developments for five years.
Wentzel says RBA Housing hopes to bring a further 1200 houses to the market next year.
The demand is exceptional due to the good economic growth in SA, the sound fiscal policy and urbanisation.
About 95% of buyers of its units are blacks entering the market for the first time or who have bought previously and now are looking to upgrade their properties.
Wentzel says although the National Credit Act has delayed bond approval turnaround times , it has not deterred clients from purchasing property.
The legislation stipulates that banks must check on the overall credit exposure of any borrower before approving any new loan.
Wentzel says the act will have positive spin-offs for the affordable housing market because it deters clients from taking up too much short-term credit.
The affordability of these clients in the future should increase, which will have a positive spin-off for affordable residential property, he says.
Article by: Nick Wilson - www.businessday.co.za