Deputy minister of finance David Masondo on Tuesday visited the Divercity housing development in Cape Town, an investment target for the Public Investment Corporation (PIC), which he chairs.
Divercity is a multi-family rental housing development which the PIC expects will broaden its portfolio diversity and meet some of the socioeconomic goals of the government in urban development.
Masondo said the development played a critical role in responding meaningfully to the fact that low-income residents of Cape Town and other cities tend to live far from economic opportunities and use large portions of their income to commute to and from work.
“For many South Africans, it is not only what they need to do to earn an income or make a living that matters. Where they live also continues to determine how they live. Developments like Divercity are beginning to change this by reducing travel time, lowering transport costs and improving access to work and economic opportunities. This is a key priority for the PIC.”
This particular development is in Cape Town, where pressures on housing, especially in the CBD, are mounting. According to Codera Analytics, property prices in Cape Town have risen 23% since 2010. Reportedly, 70% of housing in the CBD has been taken up by tourists.
According to the PIC, the investment supports more than 1,100 jobs, and is projected to support 2,800 livelihoods as it expands toward its target of 15,000 units.
“This is about more than buildings. It’s about making cities work better for people, so that living closer to work is not a privilege but a possibility for more South Africans.”
The PIC says the country’s housing market has a structural shortage of between 2.3-million and 2.6-million units, with much demand concentrated in the affordable housing segment.
The demand for affordable rental housing is estimated at 250,000 to 300,000 units a year, while delivery remains significantly constrained, reinforcing the need for scalable, institutional solutions.
The PIC, which invests on behalf of the Government Employee Pension Fund, has committed 24% shareholding, as part of a long-term investment strategy focused on stable income, inflation-linked rental growth, and capital appreciation.
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