Purpose This study aims to identify and establish effective housing financing concepts to be adopted by government in achieving its mandate of providing sustainable affordable housing for the poor to decrease the building of shacks, as well as proposing solutions to the housing deficit in South Africa. A rise in demand and shortage in supply of housing calls for the need to address issues of affordable housing in South Africa, and developing countries in general, to ensure a stable and promising future for poor families. Design/methodology/approach Literature has revealed that the South African government, at all levels, accorded high priority to the provision of low-cost housing. Thus, government has adopted subsidy payment as a method of financing affordable housing to ensure that houses are allocated free to the beneficiaries. This also addresses the historically race-based inequalities of the past, but unfortunately, this has not been fully realised. This study uses a sequential mixed method approach, where private housing developers and general building contractors were the research participants. The qualitative data were analysed using a case-by-case analysis, and quantitative data were analysed using a descriptive statistical technique on SPSS. Findings The results of the qualitative analysis reveal a gross abuse of the housing subsidies system by the beneficiaries of government-funded housing in South Africa. This is evident from illegal sale of the houses below market value. This has led to a continual building of shacks and an increased number of people on the housing waiting list instead of a decrease in the housing deficit. The results from quantitative analysis affirm the use of “Mortgage Payment Subsidies, Mortgage Payment Deductions, Down-Payment Grant and Mortgage Interest Deductions” as viable alternatives to subsidy payment currently in use to finance affordable housing projects by the South African Government. Practical implications At the moment, the focus of the South African National Government is continual provision of free housing to the historically disadvantage citizens, but the housing financing method being used encourages unapproved transfer of ownership in the affordable housing sector. This study thus recommends the use of an all-inclusive housing financing method that requires a monetary contribution from the beneficiaries to enable them take control of the process. Originality/value The relational interface model proposed in this study will reduce pressure on government budgetary provision for housing and guarantee quick return of private developers’ investment in housing. Government must, as a matter of urgency, launch a continuous awareness programme to educate the low-income population on the value and the long-term benefits of the housing.
Adequate provision of affordable human settlements is a huge challenge in South Africa since its independence. This paper investigates the effects of the cost increase of building materials on affordable housing delivery in South Africa. With potential solutions for cost minimisation of building materials, with the aim of achieving affordable housing delivery in South Africa are provided. This study uses a sequential mixed methods approach, wherein surveys were conducted among the construction professionals (project managers, site managers architects, site engineers, quantity surveyors, contractors, building materials suppliers, and government workers) in the construction industry within Cape Town, South Africa, who were considered as the research participants. The qualitative data obtained from the survey exercise were analysed using content analysis, while the quantitative data were analysed using a descriptive statistical technique on SPSS. The findings attained show fluctuation in construction cost and a rise in maintenance cost (caused by poor workmanship) as significant effects in the cost increase of building materials for affordable housing delivery. Adequate application of the recommendations given in this study will minimise the effects of high cost of building materials and enhance affordable housing delivery. Appropriate handling of the findings given in this study will reduce the effects of the high cost of building materials and augment timely delivery of affordable housing and stakeholders’ satisfaction.
Although studies relative to redirecting the unsustainable trajectory of small and medium enterprises (SMEs) in the South African construction industry (SACI) have been extensively conducted, current statistics show that 70–80% of construction SMEs in the SACI fail within their first five years of existence, raising concerns regarding their sustainability. This paper attempts to address the negative trajectory by exploring the concept of corporate social responsibility (CSR), investigating the organisational perceptions of SMEs in the SACI relative to the relationship between the integration of CSR and sustainable business performance (SBP). Existing literature was used to provide an overview of this relationship taking into consideration the views of SMEs in both developed and developing countries. The empirical study was conducted utilising a quantitative research approach in the form of an online questionnaire survey. The research data was analysed using both descriptive (mean, standard deviation, etc.) and inferential (Analysis of Variance ANOVA) statistics. Based on the research approach and data analysis, the findings revealed that SMEs in the SACI similarly perceive the relationship between the integration of CSR and SBP to be a positive one, implying that the practice of CSR within construction businesses should lead to SBP, and serve as a meaningful guide in addressing the unsustainable trajectory of SMEs in the SACI. The findings could guide government agencies such as the construction industry development board (cidb) to embed CSR education within contractor development programs, linking the adoption of CSR to the contractor grading system.
Purpose This study aims to explore the concept of green building by determining a suitable system for categorising green building features (GBFs) that are considered significant in enhancing the value of a building in a developing economy with particular reference to South Africa. The motivation for categorising the features is based on the perception that the upsurge in adopting green building and sustainability has ushered in a new and formidable set of challenges to practising professionals in terms of recognising the most significant value-adding GBFs. Design/methodology/approach A quantitative approach was adopted, involving randomly selected construction professionals within the Western Cape Province of South Africa. The data were analysed using descriptive and inferential statistical analysis tools. Findings Based on the mean ranking analysis, the top three most important features, amongst others, were kitchen and water-closet (WC) water efficient fittings, megawatt photovoltaic solar plant and water metering for monitoring and leak detection. Additionally, an exploratory factor analysis revealed that the underlying grouped features were “recycled materials and high-performance building energy design”, “water-saving and solar technologies”, “biometric system and acoustical feature”, “sensor control and natural daylight design”, “daylight harnessing feature”, “high-performance hydrologic strategy and noise control feature” and “special utility feature and water efficiency technologies”. Research limitations/implications This study was conducted and limited only to the Western Cape Province of South Africa. However, the findings have practical significance to the generality of green building projects and may serve as a useful guide for other developing countries. Originality/value This study broadens the viewpoint of construction professionals to recognise and prioritise the most important GBFs in South Africa that increase the value of a building. To create a system for assessing the sustainability of a building, the seven components and the features associated with them may be useful.
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