Research into Property Market Dynamics in Delft

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Type of project: Research
Location: Delft, Cape Town
Dates: February - May 2016
Client: Centre for Affordable Housing Finance (CAFH)
Collaborators: Claire de Trevou, Thandeka Msebenzi, Sizwe Mxobo, Nokukhanya Mcunu, Ettienne Claasen, Zuleiga Dyers, Khanya Nozewu
Keywords: Township property markets, Affordable housing, Housing finance
Status: Completed

This research has been commissioned by the Centre for Affordable Housing Finance in Africa (CAHF) to fulfill their mandate to support housing finance market development. The study is a pilot on resale of RDP houses in South Africa, using Delft in Cape Town as the case study area. The aim of the research is to understand the dynamics of a property market such as the one in Delft.

It aims to do this by making visible and legible the transaction value chain that underpins how the market operates, revealing the methods used and challenges faced by actors, as well as the opportunities that are within this market.

The overarching intention is to provide new knowledge and understanding about the dynamics of the property market in Delft - a township with a range of housing typologies, but dominated by subsidized housing.

The aim is to understand:

- Processes of property transaction in Delft,

- Identify gaps in the transaction value chain,

- Understand what problems are faced by the active households in a property market such as Delft.

Sub -themes driving the research include:

- The nature and characteristics of property and tenure in Delft

- The channels and steps taken when transacting property

- Funding and financing housing in Delft

- Innovations in the market

This research can enable interested stakeholders to design policies and tools to cater for this market. In addition, this research can shed light on the investment and support opportunities which township property markets offer for estate agents, lenders, and financiers.