Balwin Properties plans to turn a swathe of land on the rural outer edges of Pretoria’s eastern suburbs into a bustling town in the largest sectional title development in Africa that is estimated to be worth more than R44bn, in today’s money.
This is based on an average selling price of R600,000 per unit.
Mooikloof Mega City, which will include up to 50,000 low-cost housing units, has been designed specifically for the gap housing market, which can be defined as housing opportunities for people earning a combined monthly income of R3,501-R18,000, that is, those who earn too much to get a free house from the government but too little to qualify for a bank bond.
Starting on October 3, the first phase will consist of 2,500 units, and could go up to 16,000 units worth R9.6bn. The first 16,000 units will create about 37,000 job opportunities.
The first occupants are due move in on March 1 2021. More units will be added over the next decade and the total 50,000 units will generate 115,000 job opportunities over the lifespan of the project.
Balwin’s previous developments have tended to serve middle- and upper-class South Africans, but this will be its most affordable housing development with one-bedroom units starting at R499,900 and three-bedroom units at R799,900.
Balwin CEO Steve Brookes said his company has recognised the need for affordable housing in SA. It is also trying to widen its customer base to South Africans who were unable to afford units in its high-end offerings in the past. These developments, such as the Polofields in Waterfall and The Blyde in Pretoria East, include clubhouses and numerous other services for residents.
Brookes said President Cyril Ramaphosa, who has pledged to revive the SA economy with the help of private-sector investments, had contacted him personally about rolling out more affordable housing across SA.
The presidential infrastructure co-ordinating commission designated the Mooikloof Mega City development as a strategic integrated project in terms of government legislation gazetted in July 2020. The government will earmark R1.4bn for all external bulk services installations, such as water, sewerage, electricity, roads, and stormwater pipes, to be developed by Balwin.
The Treasury has also recently signed a memorandum of agreement with the Development Bank of Southern Africa in terms of which a R100bn infrastructure fund will be available for infrastructure development in SA.
Balwin will acquire two tracts of land with a combined area of 210ha for R332.5m. The land will be combined into a single property consisting of a residential component, two educational facilities and a commercial node. Balwin is to undertake the residential developments and sell about 20ha for the development of educational facilities and the commercial node.
Correction: September 1 2020
An earlier version of this article incorrectly said the first phase of the project would build 16,000 units and create 115,000 job opportunities. In fact, the first phase will consist of 2,500 units, which may go up to 16,000, while the jobs number refers to those created over the lifespan of the project. Furthermore, the project will be worth more than R44bn based on an average selling price of R600,000 per unit; it will not cost R44bn.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.