Housing prices ‘ridiculous’

2018-04-24 06:01

The high cost of housing in Cape Town is of great concern, as prices have increased with large percentages over the past 10 years, especially in low-income areas.

These sharp annual increases are huge contributors to housing becoming more unaffordable, and more people having to rely on government to rather provide them with RDP-housing.

A decent three bed roomed house in the gang-infested, crime-ridden areas of the Cape Flats is already costing around R800 000. How long will it take buyers of these properties to settle this amount?

Many of these home-owners will actually be unable to pay their bonds within the settlement period. In most areas such as these, people are paying R3000 and more per square metre.

Look at a place like Eastridge in Mitchell’s Plain, besides the shopping malls, transport facilities, nearby vandalised schools and hospitals, minimal home improvements? What is actually driving this high cost of housing?

These facilities have been around for many years already, before housing prices started reaching such exorbitant levels. Most of these houses were constructed 30 years ago already, thus construction costs cannot also be a significant factor.

There has also always been a high demand for housing in low-income areas such as these and are these high prices then at all justified? Are buyers really getting their money’s worth?

Is someone or a group of people perhaps getting rich at the huge expense and burden of others? Can buyers in these areas really be confident that no price-fixing was involved with the sale of their housing?

Large-scale collusion in various industries has come to light in recent years. Is the Western Cape real-estate and housing sector free from such practices? Has the time perhaps come for the Competition Commission or Consumer Protector’s Office to look into this matter?


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