More than R12bn in property projects ‘being held up’

21 May 2014

More than R12-billion in property projects across retail, office and residential developments are being held up by Minister of Rural Development and Land Affairs Gugile Nkwinti’s failure to use his discretionary power to discharge certain provisions of Section 60 of the Spatial Planning and Land Use Management Act (SPLUMA), South African Property Owners Association (Sapoa) CEO Neil Gopal, Engineering News reports.

Gopal explained that the SPLUMA – which was signed into law in August 2013 and was aimed at bridging the racial divide in spatial terms and transforming the settlement patterns of the country – replaced the Development Facilitation Act (DFA), stating that the new Act in itself was not a concern for Sapoa.

However, property development applications, appeals and other matters brought before municipalities and provincial appeals tribunals had been affected as a result of the transition to the new legislation.

Sapoa had raised these concerns with the Minister.

Meanwhile, Sapoa also believed that the Subdivision of Agricultural Land Act (SALA), in force since 1970, was constraining property developments as it made it difficult for agricultural land to be rezoned for commercial development.

By: Leandi Kolver Photo: Sapoa CEO Neil Gopal

Read the latest issue

Latest Issue