Infrastructure
With regard to the Bothasig Gardens Housing Development:
- (a) How has this project contributed to the broader socio-economic development of the area, (b) what contribution was made by the (i) public and (ii) private sectors and (c) what impact has this project had on property prices in the surrounding areas;
- whether there are further human settlement developments planned in the area; if so, what are the relevant details;
- whether his Department anticipates similar successes for the Annandale Housing Project in Richwood; if so, what are the relevant details?
(1)(a) Social Housing is a key pillar of the Western Cape Government’s commitment to delivering more affordable housing projects that are situated in well-located areas and promote greater spatial equity such as Bothasig Gardens. The proximity of the project to Century City and Cape Town’s city centre enables access to several amenities, such as public transport, education institutions and healthcare facilities, while enabling proximity to job opportunities.
Bothasig Gardens has added 314 residential apartments to the area and will have approximately 750 to 900 occupants when fully let. 70% of the leaseholders fall into the secondary market, with incomes between R5,500 and R22,000 a month. The leaseholders are economically active and in permanent employment, thereby contributing to the local economy in terms of retail, transport, schools, services, etc.
From a social integration perspective, the development of social housing in established areas has enabled the access of less privileged and previously disadvantaged families to infrastructure and amenities.
(b)(i)(ii) The final cost of the development was R163 million, including VAT. The financial contributions included:
- Capital Grants from the Social Housing Regulatory Authority (SHRA) (Public) - R90,800,000
- Debt Capital (Private) - R33,000,000
- Communicare Equity Contribution (Private) - R39,200,000
(c) The average house sale price for Bothasig in 2021 was R1,947,500 and the average sale price in 2022 is R1,980,000. It is difficult to attribute the increase in house prices to the Bothasig Gardens project, which is probably a result of economic conditions. There has been no negative impact on property prices in the area since the completion of the Bothasig Gardens project. From a rental perspective, Bothasig Gardens has significantly lower rentals than the surrounding suburb.
(2) Currently, there are no further human settlement development plans for the Bothasig area.
(3) The current development proposal for the Annandale Housing Project is a mixed-use development with the inclusion of affordable housing for both ownership and rental tenure. It includes a range of facilities and amenities. The City of Cape Town is the implementing agent and the project is at pre-feasibility stage. The site is currently undergoing rezoning in terms of the Development Management Scheme.
