FNB Invest in Affordable Housing units

Posted On Friday, 01 March 2013 09:16 Published by Commercial Property News
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FNB Commercial Property Finance alongside partners Kiron Projects launched the Windmill Park Project in Boksburg, an affordable housing estate which  caters for a wide spectrum of the housing market.

Windmill Park ProjectWindmill Park offers a variety of unit types, 830 in total, priced from R285, 000 to R340, 000 for sale, or alternatively for rent at average rental rates of R2,500 to R3,000. 

At the recent opening of the Gauteng Legislature, the Gauteng Premier made note in her address that Gauteng is home to 12.3 million people, becoming the province with the largest population that accounts for 24% of the national population in South Africa. She also noted that the 2011 Census findings show that 80% of Gauteng’s residents now live in formal housing.

Carollize Laing; FNB CPF Head: Residential and Affordable Housing says, “The demand for housing remains high, particularly in metropolitan areas as a result of rapid and continued urbanisation. Whilst subsidised housing (Breaking New Ground) is aimed at families earning up to R3, 500 per month, the income bracket between R3, 500 and R15, 000 is known as the affordable housing segment, and homes can be acquired through a combination of government subsidies and conventional mortgage bond finance. 

The challenge in the South African housing market, however, is the so-called GAP market - households earning between R3, 500 and R7, 500, simply because no stock is available at prices that these households can afford.  It is impossible to build houses at prices which would suit this segment, unless land and infrastructure costs can be minimised.  This segment of the market is therefore reliant on rental tenure as opposed to outright ownership, which is exactly what Windmill Park offers.”

The estate encourages a sense of community through the provision of play areas for children and open park areas.  It furthermore offers safety and security to its residents and makes it the ideal place to raise a family.

“FNB is very proud to be involved in such an exciting development such as Windmill Park. This is just one of the many flagship projects we as a bank are in involved in, and we will continue to add value and sustainability to the growing Affordable Housing market,” concludes Laing. 

Last modified on Thursday, 13 March 2014 10:05

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