Current Edition >> Archives Section >> Spot Coverage >> 17-30 March 2006

Bloem's residential development frozen

Mike Spencer, Platinmum Global

Unlike other areas, such as Johannesburg where street after street of new development is taking place, development in Bloemfontein has come to a virtual standstill because of the lack of developable land. The last few stands at Bloem Park, an extension of Langenhoven Park, are currently being developed, after which almost no new development can take place. Those that have been approved, are at the upper end of the market where there is limited demand, with infrastructure and ground costs keeping prices high. The Mangaung Local Municipality is being pressurised by developers and property professionals through the Manguang Investors Forum (MIF), but with little practical results as yet.
More than R2,5 billion of development has been delayed indefinitely or cancelled as a result of the inability of the local authorities to provide services for new development areas, including those for the “politically correct” eastern side of the city. Sold out developments have even been cancelled as a result of inability by developers to have their land rezoned. From their side, local authorities are blaming lack of funds to provide services, but their insistence on limited potential development area and the non-servicing of guide planned areas has resulted in a virtual halt to development in the city.
Much of the proposed new development has been to the northwestern side of the city adjacent to Langenhoven Park in the Spitskop/Bainsvlei small holding area, which, however, has still not been developed due to lack of services being installed by the municipality and, more importantly, lack of funds to solve the serious traffic congestion on the Kimberley Road. The amount involved is in the region of R55 million, but despite suggestions from major developers prepared to fund this upgrading, subject to certain conditions, nothing has as yet transpired.
The result of this development constraint at a time of continued migration to the city, plus a strong growth in black middle class buyers market, is a severe shortage of developable sites, resulting in a demand by sellers for price affordability.
Further negative consequences are that bottlenecked developers and investors are apt to relocate to more accommodating urban parts of the country, thus causing Bloemfontein / Mangaung to lose millions in investments. At the same time many people looking for affordable residential properties in their price range, might also decide to relocate.
On the other hand, a resumption of sustainable provision of services by the local authorities would inevitably result in a surge of building activities in the city, much of which would naturally tend to be in the middle and affordable price range. The volume of homes that would be built if suitable land were to be made available is estimated to be 3 000 - 4000.
Thus Bloemfontein / Mangaung has seriously and urgently to relook its development channels.
Spencer can be contacted at 082 881 4711.

Saamswoeg vir beter spanwerk

Die jaarlikse Medihelp Besigheidsaflos wat op 18 Maart 2006 te Bloemfontein aangebied is en wat o.m. behels het 42,2 km in ses bene van 7 km elk, is goed ondersteun deur spanne van sowel staatsinstansies as besighede - groot en klein. Hoewel die mededinging in sommige kategorieë straf was, het dit oor die algemeen gegaan oor spanbou – saamswoeg lei tot beter spanwerk, ook later in die werkplek. Op die foto, 'n aantal deelnemers van verskillende spanne, van links P. du Plessis (Transwerk Snails), L. Barlow (Transwerk Scooby Killers), M. Moeketsi (Transwerk Coaches), A. Coetzee (Dept. of Farmakologie UOVS) en M. Moroka (Transwerk Industriële Park) - almal in die gees van die geleentheid.