Draft legislation aims to transform property sector.
Minister of Trade and Industry, Dr Rob Davies, says, that there must be transformation in the property sector in South Africa.
Davies adds that this must contribute towards the reversal of the legacy of Native Land Act, 27 of 1913, which was a discriminating policy and legislation. This has led the Department of Trade and Industry to create a new draft, which will amend the Broad-Based Black Economic Empowerment (B-BBEE) property sector code.
The changes in the draft property sector code will affect residential developments, commercial activities and commercial industries within the property sector. According to Davies, this will ultimately change the face of property ownership. The property sector code will also have an impact on the value chain, which, he notes, will incorporate property development, property services, property and facility management, broking, valuation, estate agents and other professional services.
The minister is looking towards a quick application to improve the growth of ownership by black people in the sector, which states in the gazette, released on 30 October 2015 that black ownership target will increase to at least 27% for property owning companies.
“This is higher than the 25% black ownership target of the generic codes. In addition, and in recognition of the fact that there is a need to make capital available in the sector to enable black-owned companies to develop and acquire properties, the draft sector code has set a target for established companies to financially support those that are at least 51% black-owned. The value of the finance to be made available is up to 2% of the total development and redevelopment spent,” adds Davies.
The draft property sector code aims to create economic development which will fuel property development in areas that do not have many resources. The target set on these marginalised property areas is expected to increase by 10% within annual investment for development or redevelopment.
“The draft property sector code supports the commitment of all the stakeholders within the property sector that strive for transformed property relations in South Africa and to promote a vibrant and growing property sector. A significant number of South Africans have never in the history of their families experienced formal property ownership, and this wealth creation benefits them,” says Davies.
Members of the public and interested parties are invited to submit comments in writing by 30 December 2015, on the draft property sector code.
Department of Trade and Industry
Minister Rob Davies
012 394 1609 gpwonline.co.za
This article appeared in Neighbourhoods, Sunday Times.