Gauteng Department of Housing

This is yet another classic example of what co-operation between government and private sector can achieve. Today we witness another joint initiative between the Department of Housing and the business sector. This joint venture is a public-private partnership that aims to help lower middle -income earners with access to affordable housing.

The lower middle-income market which is largely made up of people who earn between R2500 – R7 500 have not been benefiting from both private finance housing schemes and government housing subsidies. As a result they have been left in the lurch because nobody was adequately addressing their housing needs.

The initiative we are witnessing today strives to address the needs of this market thus alleviating the challenges of housing shortage in townships nationally. The recent research by FNB Residential Property Barometer has illustrated that there is a massive shortage of houses in townships nationally.

According to the research findings in Gauteng there are approximately seven buyers to every house (old stock and new developments). This stats shows that there is a huge demand fore housing and we therefore need to respond to this situation in a decisive and strategic manner. It is through our partnerships with banks such as FNB that the Department will be able to close that gap and win the battle against homelessness. Through this partnership about 3035 stands will be developed and the new suburb known as Glen Ridge established.

This housing project will cater for first time home owners who earn between R1 500 to R7 500 per month. FNB has provided finance for the development of these quality affordable houses. The first batch of houses will be ready for occupation between September/October this year.

The entire project is expected to be completed by 31 December 2008. Each unit consisting of a three bedroom and one bathroom will cost R168 000 (all inclusive). This means that through the FNB's Smart Bond end-user financing product-the individuals targeted by the scheme will have an easy access to a mortgage which includes a 5-year fixed rate.

This will also result in fixed monthly installments for the same period, affordable life insurance with no medical check required and full loan amount plus bond costs. In addition, prospective homeowners will be able to apply for government subsidies to help finance their house.

The project will not only provide houses for more than 3 000 families but will help facilitate further infrastructural development such as schools and clinics which are a prerequisite in building sustainable community.

We want to thank FNB for their ever sterling work and other partners in this project for ensuring that the dignity of our ordinary South Africans is restored. We believe that the last thing any self-respecting individual wants is exposure and vulnerability to harsh elements. It is for this reason that together with the private sector we have taken upon ourselves to ensure that the people of this country are provided with decent shelter.

Ladies and Gentleman once more let me thank the FNB and its board of directors, the contactors and other stakeholders for heeding the government's call to provide our people with decent housing.

Address By Mec For Housing In Gauteng, Ms Nomvula Mokonyane, On The Occasion Of The Fnb Protea Glen, Soweto, Housing Development Project