While the latest SONA 2022 might not have provided the nation with as much urgency and a stronger commitment to accelerating infrastructure rollout, there were still some positives gleaned from President Cyril Ramaphosa’s speech on 10 Feb 2022 that the property industry can take solace from. Rainmaker Marketing’s Director, Stefan Botha, whose award-winning agency specialises in the property sector, unpacks the opportunities that the property industry can capitalise on based on this year’s SONA 2022.
As the President delivered the State of the Nation address, the resounding need to take action and make fundamental changes was asserted for effective, longer lasting development and to build a sustainable future for our economy.
This groundwork starts with a massive rollout of infrastructure, especially in energy, roads and water security. With the Infrastructure Investment Plan still in play, President Cyril Ramaphosa announced that Government will make an initial investment of R1.8 billion in infrastructure development. It’s undeniable that earthworks as well as the infrastructure of roads and essential services is key to socio-economic reform and connecting communities that have historically not been integrated before.
There is a 360-degree cycle when you start from grassroot levels. For example, Bridge City in Kwa-Zulu Natal is a prime example of how Tongaat Hulett Property, along with their development partners, have undertaken a multi-billion-rand, Presidential lead project to create a first of its kind development in South Africa. The purpose of Bridge City is to connect the communities of Inanda, Ntuzuma, KwaMashu and Phoenix to the broader city. Beyond that, it continues to unlock commercial, retail and residential opportunities, that allows for further development of new transportation systems and generate thousands of jobs.
As part of the infrastructures for improvement, the electricity crisis was highlighted. We welcome sustainable development as a key trend within South Africa going forward, especially as developers work more closely with entities such as the Green Building Council of South African to expand green-rated living across the country. The likes of International Housing Solutions, behind developments like Ballito Groves and Mason Arbour Town, finance the development of energy efficient, affordable housing communities through achieving EDGE (Excellence in Design for Greater Efficiencies) certification, which also reduces living costs for their residents.
President Cyril Ramaphosa stated that water is the country’s most precious natural resource and why government has prioritised institutional reforms in this area to ensure future water security, investment in water resources and maintenance of existing assets. Management Associations are game-changers in South Africa as they collaborate with Municipalities to ensure neighbourhoods are safe and maintained, from fixing pavements to initiating water system projects that ensure far-reaching communities, as well as their own, have access to clean water.
The President in his address put a lot of emphasis on the positive impact that private business has on the growth and sustainable future of our country. KZN based Devmco Group is a prime example of how a private local business is making headway and significant change in the catalytic Sibaya Coastal Precinct project. They recently announced a R2 billion sales achievement for their Salta Sibaya development, which was launched less than 12 months ago, and makes it South Africa’s fastest selling development in history. This successful milestone will allow this private business to generate R30 – R40 million in rates for the Municipality, create 1000 – 2000 permanent jobs, as well as create an additional 10 000 – 15 000 short-term jobs over the next year.
The call for innovation and digitisation was another highlight from SONA and it goes without saying that technology is changing the face of property development. The Watt Club, an inner-city Durban rejuvenation project backed by Urban Lifestyle Investment, utilises the innovative HOMii App which gives its residents total digital control and allows them to access their apartment, log maintenance requests, book events, co-working spaces or gym classes and pay for internal services. Devmco Group is another highly progressive development entity breaking the boundaries with technology, and sustainability, as they have pioneered KZN’s first smart village, coupled with the ‘true wallet’ that provides convenient billing on levies and utilities, while presenting an energy consumption profile for residents.
At Rainmaker Marketing, we are fortunate to work with an array of private development entities and community associations that continue to change the landscape of our country, bolster foreign and local investment, generate revenue for Municipalities and create significant employment. These big and small developments that we launch foster socio-economic progress and have a significant and positive impact on our communities that is required to meet the needs of our nation to thrive and prosper.