The influence of residential desegregation on property prices in South Africa: The Peitersburg case study

Kotze, NJ

doi:10.4314/jfecs.v27i2.52755

Cited by 2 publications

(3 citation statements)

References 4 publications

(4 reference statements)

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“…The first downswing period matches the residential segregation reinforced by the Group Areas Act 36 of 1966 which forced people of different races to live in separate residential areas (Prinsloo and Cloete, 2002) with huge consequences on property prices (Koetze, 1999). The second period coincides with the 1976 Soweto student uprising which had an adverse effect on confidence and economic performance, leading to a decline in real house prices by 22.4 percent between 1976 and 1979 (Luüs, 2005).…”

Section: Regime Propertiesmentioning

confidence: 99%

Is the relationship between monetary policy and house prices asymmetric across bull and bear markets in South Africa? Evidence from a Markov-switching vector autoregressive model

et al. 2013

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Abstract. This paper examines asymmetries in the impact of monetary policy on the middle segment of the South African housing market from 1966:M2 to 2011:M12. We use Markov-switching vector autoregressive (MS-VAR) model in which parameters change according to the phase of the housing cycle. The results suggest that monetary policy is not neutral as house price growth decreases substantially with a contractionary monetary policy. We find that the impact of monetary policy is larger in bear regime than in bull regime; indicating the role of information asymmetry in reinforcing the financial constraint of economic agents. As expected, monetary policy reaction to a positive house price shock is found to be stronger in the bull regime. This suggests that central banks react more in bull regime in order to prevent potential crisis related to the subsequent bust in house prices bubbles which are more prominent in bull markets. These results substantiate important asymmetries in the dynamics of house prices in relation to monetary policy, vindicating the advantages of generating regime dependent impulse response functions.

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Section: Regime Propertiesmentioning

confidence: 99%

Is the relationship between monetary policy and house prices asymmetric across bull and bear markets in South Africa? Evidence from a Markov-switching vector autoregressive model

et al. 2013

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“…Questions remain as to whether the MIH concept is a race or income issue in South Africa. Notable research by Kotze (1999) found a strong unfavourable correlation (-0.69) between residential property prices and desegregation in Pietersburg using the product-moment correlation coefficient method.…”

Section: Neighbourhood Mih Nimby Effectsmentioning

confidence: 99%

“…Through semi-structured interviews, three purposefully selected informants gave a broader overview of the case study area based on their experiences. A micro level (pilot) study was necessary for drawing a consensus on different localities that experience different forms of change as suburbs are location fixated (Ajibola, 2013;Briggs et al, 2009;Kotze, 1999). House price data was collected from seven suburbs to see how house prices responded to Cosmo City MIH development in Johannesburg.…”

Section: Cosmo City Mih Case Studymentioning

confidence: 99%

Does an Inclusive Housing Development Depress Neighbourhood House Prices? A Case Study of Cosmo City, Johannesburg, South Africa.

SIMBANEGAVI¹,

IJASAN²

2022

JICBE

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South Africa joined the global world in building inclusive housing, known as Mixed Income Housing (MIH) as a way to integrate and transform residential markets previously distorted by the discriminatory apartheid regime. However, despite the benefits of MIHs in deconcentrating poverty while boosting housing supply, these inclusive neighbourhoods often experience amplified cases of ‘Not in My Back Yard’ (NIMBY) for various reasons. Thus, approval processes of these inclusive housing developments get to be highly contested in courts, which causes huge delays in their completion. The paper aims to investigate the effect of NIMBY on the price of houses in a mixed-income neighbourhood. The paper used a cross sectional hedonic model on houses sold in the neighbourhood of Cosmo City MIH. The limitation is that a typical and purposely selected Cosmo city case study may not be generalizable to South Africa at large. Results show that Cosmo City had negligible effects on neighbourhood house prices. This is rather surprising given the unfavourable perception encountered during its development. The practical implication is that improving infrastructure such as roads to reduce traffic congestion, building new schools, new hospitals, security services, and new shopping centers reduce pressure on available services and amenities making inclusive housing acceptable in its neighbourhood. The social implication is that inclusive housing developments default into supplying the much-needed social housing in South Africa. Scientifically measuring perception on accepting MIH development projects in well-established neighbourhoods does contribute to understanding the plight of housing shortage by the public in ways that accepts inclusivity from an investment point of view.

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The influence of residential desegregation on property prices in South Africa: The Peitersburg case study

Abstract: OPSOMMING'n Resegregasieproses (sosiale hergroepering in hierdie woonbuurte) is ook besig om in hierdie stad na vore te tree.

Cited by 2 publications

References 4 publications

Is the relationship between monetary policy and house prices asymmetric across bull and bear markets in South Africa? Evidence from a Markov-switching vector autoregressive model

Is the relationship between monetary policy and house prices asymmetric across bull and bear markets in South Africa? Evidence from a Markov-switching vector autoregressive model

Does an Inclusive Housing Development Depress Neighbourhood House Prices? A Case Study of Cosmo City, Johannesburg, South Africa.

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