The Impact of Government’s Investment in Housing Delivery

Since 1994, the government has helped deliver between 2 and 3 million homes across South Africa, making up almost one-quarter of the entire formal residential property market.1 While an essential human service, these homes are increasingly recognized as a significant investment in the net worth of thousands of families across the country. The government has acknowledged constraints on continuing this level of output. Understanding what has been the impact of this investment is important in policy priority considerations going forward, including leveraging the value of that effort amongst partners in the housing sector and in particular for the homeowners themselves.

The importance of registering residential properties cannot be overstated. As residential properties are registered through a process with the South African deeds registry, homeowners are ensured security of tenure, and with legal title, they can raise credit against the security of those assets, and can climb the housing ladder by selling their home and buying a new home. To municipalities, valuation rolls can be made more accurate and services can be delivered more appropriately. To those working in the housing sector, the registry creates a rich source of data which can be analysed for market opportunity.

This report provides a brief snapshot of the impact of those properties which were delivered through some sort of intentional government intervention, such as direct subsidies, substantial government financing, or legacy programs implemented prior to 1994. How have these initiatives impacted the property market, and what opportunities do they present currently?

This report was prepared with the support of the National Housing Finance Corporation.