Nick Wilson

THE empowerment targets of the property sector charter are expected to be released this week, and will be an important focus area with the industry wanting to transform ownership structures.

But property pundits say there is a strong need to create a vibrant property industry in areas where there has previously been no real investment as well as to encourage black entrepreneurs to enter the market.

Property economist Francois Viruly of Viruly Consulting says government has a role to play in creating an institutional environment that supports the property market in previously neglected areas. He says poor information about the property market in townships, for instance, makes it difficult for people to do property deals in these areas.

While government sponsored studies have shown property worth billions of rand is locked up in townships, Viruly says the paucity of information needs to be addressed.

"The property charter goes beyond the players, it’s also about saying to what extent the charter can promote investments and the building of a property-related asset base.

"It offers an opportunity to create vibrant property markets in areas that have not been previously considered."

Andy Tondi, chairman of the steering committee drafting the charter, says the committee would like to see the emergence of black property entrepreneurs.

"Through the charter we would like to encourage a lot of black people who were not in the industry to give it a crack."

Tondi, who is MD of SAPOS Properties, the wholly owned subsidiary of the South African Post Office, says although many people say it is difficult to access finance for businesses, property investment is one of the sectors where it is relatively easy to get finance. "If it is a good deal, you will get the finance," says Tondi.

Although the need for training and qualifications is important, Tondi says anyone with a good background in business can enter the property market.