The SA Property Owners Association (Sapoa), representing most of the commercial listed property sector, has escalated its calls for action against the rise of illegal multimillion-rand developments in Tshwane.
The association says the projects that violate regulations and zoning rules are mushrooming in SA’s capital city.
Sapoa, which has companies such as Growthpoint, Emira, and Vukile as members, has voiced concern about the uncontrolled expansion, which threatens legitimate investments and has created significant worry among its members, whose properties are being direly affected by this disruptive trend.
According to the CEO of the association, Neil Gopal: “Illegal developments undermine the investments of compliant property owners, who face a range of negative impacts — from declining property values to increased crime rates and service interruptions. We are particularly alarmed at the normalisation of flouting development regulations, which ultimately decreases oversight in property.”
A 2021 study published by the association, which assessed the effects of illegal construction in Polokwane, found that illegal development was not a recent issue in the Polokwane municipality or other cities. Instead, it is driven by a moratorium on new developments, delays in processing development applications and inadequate regulatory oversight.
Illegal developments in Polokwane have led to increased pressure on infrastructure, lost municipal revenue from property taxes, and weakened regulation and oversight in property development, Gopal said.
Gopal emphasised the necessity for fair application of laws and regulations, urging that land-use management systems be strictly enforced and that municipalities plan for legal expertise and costs in addressing illegal developments.
“Despite some municipalities taking action against illegal land use, there appears to be a lack of political will to consistently enforce bylaws across various sectors,” he said.
Sapoa’s research showed the economic effects of the municipality’s loss, including a missed production value of R327.61m, a GDP loss of R144.63m, and the failure to create 559 potential jobs.
According to the research, Polokwane loses R 323.36m annually in rates, taxes and utility fees due to illegal developments,
“While we support the principle of responsibly addressing illegal activities, it is crucial that this does not come at the cost of existing ratepayers. We urge the municipality to strengthen its land use control unit and appoint additional planning control officers to help combat illegal land use practices.
The association also called for the prosecution of those responsible for starting and continuing illegal developments. If this does not happen, the public protector should launch an investigation, Sapoa said.
“It is crucial that the national government, along with current and former stakeholders, take steps to resolve this issue. We are willing to partner with local authorities to attract investment and development, creating employment opportunities and supporting entrepreneurship within our communities,” Gopal said.
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