R625m boost for first-time homeowners in Gauteng | Fin24

R625m boost for first-time homeowners in Gauteng

Nov 21 2016 15:51

Johannesburg - More than 20 000 Gauteng families are set to become first-time homeowners and secure a firm foothold in the residential property market.

This follows an investment by Futuregrowth Asset Management of R625m in major housing projects being developed by the lower-to-middle-income housing specialists Cosmopolitan Group.

The investment is primarily being used to fund regulatory approvals and to install bulk services for integrated housing developments that have been designed to include amenities ranging from schools to shopping centres in areas close to major CBDs in Gauteng.
Cosmopolitan's houses are priced from R400 000, with packages tailored for families earning between R10 500 to around R30 000 a month.

“Demand for housing in this income group far outstrips supply. These developments enable mainly first-time homeowners to move from outlying areas into growing metropolitan suburbs situated closer to places of work and with amenities and facilities on their doorsteps," said Futuregrowth portfolio manager and investment analyst Paul Semple.
"This is real social transformation and wealth creation. It gives young families upward mobility by enabling them to create equity and to eventually trade up in the property market.”

READ: Gauteng home to most first-time buyers in SA

Futuregrowth’s investment will fund the installation of internal and external bulk services ranging from the provision of water to sanitation, electricity and roads prior to proclamation of council-approved stands that will be developed with new houses for sale into the market.
Futuregrowth views its investment in the projects as part of its commitment to the principles of responsible investing, explained Semple.

“This is a major investment in a market where there is huge demand and a strong social need but where many developers have failed due to problems with financing and because margins are so tight,” he said.

Cosmopolitan has planned to roll out a total of 30 000 homes over the next 8 to 10 years, with the largest development near Alberton, south of Johannesburg, where 15 300 residential 1 and high density housing units are planned in a 740 hectare area.

Known as Watervalspruit, the project will be launched in early 2017 and makes provision for development of a regional shopping centre, 16 educational facilities including an independent school and 17 social nodes for community facilities.

Other projects where services are being installed are in Protea Glen, Windmill Park and Alberton. Cosmopolitan is also developing projects in Savana City, Stretford and Evaton, and is planning to develop 4 700 homes and various amenities on land formerly occupied by the Lion Park north of Johannesburg.

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