October 17, 2006By Roy CokaynePretoria - The low-cost housing market received another boost yesterday with Standard Bank launching a R700 million affordable housing development in Springs.The Hlanganani Village affordable housing development initiative, located next to Sharon Park Ext 1 in Springs, will house about 4 000 families and is in line with Standard Bank's stated aim of easing access to finance and providing effective development finance for affordable housing.It follows Nedbank and the French government development agency, Agence Française de Dèveloppement, last week signing a E40 million (R378 million) subsidised loan agreement that is expected to provide housing finance for about 4 000 low-income households.Talk Radio 702 and First National Bank, in association with construction firm M5 Developments and the Gauteng housing department, are also involved in an initiative to provide 702 houses to low-income earners within the Cosmo City.Cosmo City is a mixed-use, integrated housing development near Kya Sands in northern Gauteng where the housing department is providing subsidies for the construction and servicing of 9 000 units.In terms of the financial services charter, the industry has made a commitment to provide R42 billion in loans for low-cost housing by 2008.Research by the Banking Association of SA has revealed a massive demand for affordable houses, with a current shortfall of 650 000 units.Sim Tshabalala, Standard Bank's chief executive of personal and business banking, said there were major challenges in providing affordable housing because of regulatory constraints, a lack of available land, increased building costs and a shortage of developers.
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Tshabalala stressed that confronting the affordable housing challenges was about partnerships. Partners from commerce, the government, civil society and developers had come together for the Hlanganani development with the aim of overcoming the obstacles to provide affordable and accessible housing for those either priced out of the market or excluded for historical reasons from the formal housing sector.Residents of Hlanganani Village will have access to clinics, sports facilities, recreational areas, shopping areas, transport infrastructure and a secure environment.Servicing of the Hlanganani Village site will commence in January and developer partner Inyanga Trading 102 will start building the first phase of the village, comprising 562 units, in March. The first occupants are expected to move into units in July, with further phases of the development completed over the following 36 months.Linda Sing, Standard Bank's director of affordable housing, said people earning R6 000 a month would have the opportunity to own their own home at Hlanganani Village.Sing said freestanding and sectional title units were available and units were priced from R179 000 for a 36m2 unit.She said 150 homes had been sold since sales began last month, many to Standard Bank staff who had taken advantage of a window of opportunity. Sales were now open to the public and buyers were being assisted with access to home loans and finance-linked subsidies.