Sisulu wants to clear R600billion of 'dead equity'

Housing Minister Lindiwe Sisulu said yesterday that there was R600billion worth of housing in this country which is so much "dead equity".

Housing Minister Lindiwe Sisulu said yesterday that there was R600billion worth of housing in this country which is so much "dead equity".

She complained to the Cape Town Press Club that houses which have been built by the government since 1994 number 2,4million and cost R44,1billion, but have in effect no value, because there is no market in township houses.

She explained that what she wanted to do was to integrate the two housing markets: the primary market where houses can be mortgaged, bought and sold, and the secondary market which is static and moribund. She spoke of trying to build integrated settlements which would include both kinds of housing and which would enable the secondary market to become part of the first.

"Housing is an important index of the health of an economy, so this has to change," she said.

"We want to create a normal society." And she said that she wanted to build a ladder between the two housing markets.

She pointed out that the secondary market had to be fully functional for the primary market to work properly. "It can only grow if we create a seamless property market," the minister said.

Sisulu said that her design of an inclusionary housing policy was based on two years of research in other countries, and she insisted that it was an important step towards the clearing of "dead equity". - I-Net Bridge

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