Effects of mixed income housing on neighourhood house prices and investment guidelines for future inclusive developments in South Africa
Date
2019
Authors
Simbanegavi, Prisca
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Abstract
While Mixed Income Housing (MIH) enables inclusivity in the globalized world, opposition known as NIMBY (‘Not In My Back Yard’) seem to counter such change in land-use as it is purported to increase home ownership ‘risks’ for reasons associated with loss of value to property, increased crime, and overcrowding on services and amenities. The courts delay the approval processes for such change in land-use, which becomes cumbersome and risky for investors and reduces the much needed investment funds into housing. The study provides five key direct investment guidelines to reduce the high NIMBY opposition levels in future MIH developments, which are perhaps not entirely justified, given the ‘minimal’ effect (0.41%) found for Cosmo City MIH. The first guideline is that policy development into law is not necessary, as linking bulk infrastructure and land cost to affordable housing units acts as a negotiation tool sufficient to enforce reasonable amounts of low-income housing units into MIH developments. The second guideline is that, a privately oriented collaboration between government and private sector enables MIH developments to attract the much needed funding towards housing. This enables the private sector to build better quality housing that maintains investment value in the future and yields a financial return required in the private investment performance benchmarks. The third guideline is that self-serving developments with well-developed infrastructure, transport linkages, and social amenities on greenfield sites, enable long-term focus on investment returns, value capture, continuity, and sustainability within residential markets. The fourth investment guideline is that an MIH development should focus on mixing households according to income levels through different typologies rather than race, religion or culture in the form of ‘silo’ mixing. The fifth investment guideline requires asset and property management strategy orientation to the private sector as this enables competitive resource allocation, green building technology, and better revenue collection methods as a basis for successful future MIH developments
Description
A thesis submitted to the Faculty of Engineering and the Built Environment, University of the Witwatersrand, Johannesburg in fulfillment of the requirements for the degree of Doctor of Philosophy (PhD)
2019
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Citation
Simbanegavi, Prisca (2019) Effects of mixed income housing on neighbourhood house prices and investment guidelines for future inclusive developments in South Africa, University of the Witwatersrand, Johannesburg, <http://hdl.handle.net/10539/28962>