South African Business 2019 edition

an Development Zone
perty regeneration and growth through tax incentives.
OVERVIEW
uplace Properties is investing in providing accommodation in central Johannesburg.
In order to fight urban decay and to encourage investment in inner
cities, a tax incentive was created called the Urban Development huge potential. The develop-
believes the rental market has
rder to fight Zone urban tax incentive. decay The and UDZs to for encourage Johannesburg investment and Cape Town in were inner ers of the trendy Maboneng
first allocated in 2004. The inner city of Johannesburg, comprising Precinct are also very upbeat.
es, a tax incentive was created that applied to major South African
just less than 18km², is the largest UDZ in South Africa and it is Boost Property Management
es. This is called expanding the its Urban footprint. Development Zone tax incentive. The is building a 10-storey apartment
block in Hillbrow. The
Zs for Johannesburg Making inner and cities Cape more Town liveable were is a first global allocated trend. The in move 2004.
back to cities is spurred partly by the relative cheapness of property R40-million Kaptejn Corner will
nner city of Johannesburg, comprising just less than 18km², is the
in CBDs, legislation encouraging inner-city investment and even a have 128 apartments.
st UDZ in South perception Africa that and suburbs it is expanding are boring. its footprint in response An innovative approach
nificant successes Private that developer have Indluplace been achieved. Properties has purchased nine large to unlocking the value of land
he Urban Development
apartment blocks,
Zone of
tax
which
allowances
is shown above,
(Section
taking its
13quat)
total in the traditional areas is under
consideration. The hous-
buildings in central Johannesburg CBD, Berea and Hillbrow to 23:
ide for an
33%
accelerated
of the units
depreciation
are bachelor pads,
allowance
22% are two-bedroomed
on the costs
flats.
of
ing
development:
agency of the Limpopo
ings erected, The added listed company to, extended (its major or shareholder improved is Arrowhead) inside a UDZ. intends The Economic Development Agency
h African Revenue to “aggressively Service grow (SARS) its portfolio” has of extended high-yielding the properties incentive as it to (LEDA) has proposed a plan for
the conversion of Permissions to
arch 2020. Municipalities can apply for extension to the existing
ONLINE RESOURCES
Occupy (PTO) to title deeds in
s via the National Treasury. There are five requirements to qualify deep rural areas such as Vhembe
Black Business Council in Built Environment: www.bbcbe.org
UDZ tax deduction. These relate to the building, the nature of the and Sekhukhune. The National
Construction Industry Development Board: www.cidb.org.za
Home Builders Registration
, trade considerations, Construction the Industry specifics Training of Authority: ownership www.ceta.org.za and to the dates
Council (NHBRC) will consider
e applications. South The African fact Property that the Owners incentive Association: has been www.sapoa.org.za extended to the proposal. centre planned.
gives investors a good chance to take advantage of favourable
itions in Johannesburg.
he Johannesburg Social Housing Company (Joshco) has plans to
ide affordable rental accommodation in 12 inner-city buildings
were recently identified for that purpose. But the main target for
reaching out to other areas a
regions on the city’s outskirts. T
city wants to achieve nothing l
than the “structural transform
tion of the inner city’s econom
and physical landscape”.
The City of Johannesburg h
identified the following nodes
• Carlton Precin
Johannesburg’s tall
building attracts touri
undergoing revamp; S
Rink TV and film studio b
ing developed; conferen
• Park Station: intermo
node catering for cars, b
es, rail commuters and ta
Gautrain link to OR Tam
International Airport; w
101 SOUTH AFRICAN BUSINESS 2019