Stellenbosch town housing market study

Developed in 2021, the draft Western Cape Inclusionary Housing Policy Framework provides a guide for municipalities to develop local policies which harness inclusionary housing as a mechanism to promote better located affordable housing in towns and cities, in partnership with the private sector. As a first step to determining if inclusionary housing has the potential to be an effective policy tool in the local municipal context, it is necessary to have a clear understanding of the residential property market in the municipality. Given that many local governments do not have the means to undertake this detailed analysis themselves, the Western Cape Department of Environmental Affairs and Development Planning (DEADP) in partnership with the Department of Human Settlements appointed CAHF to deliver housing market studies for identified urban areas of George, Stellenbosch, Mossel Bay and Drakenstein municipalities.

This report is therefore an analysis of the Stellenbosch town residential property market including; housing supply and demand assessments; and analysis of the affordability gap, and is intended to provide the intelligence needed to ensure an evidence-led understanding of the housing market. The demand and supply side assessments of the residential property market in Stellenbosch tow n point to opportunities to leverage private developer investment towards the construction of additional affordable housing, both ownership and rental, especially in those areas experiencing increased market activity post-COVID and high churn rates. Despite the evidenced demand in the entry and affordable markets, private developers are currently focused on building luxury properties—mostly freehold estate and sectional title. An inclusionary housing policy has the potential to leverage this developer interest towards increased investment in affordable housing.