Abstract
D.Litt et Phil.
The number of slums and squatter settlements is rising globally; this is recognised as a significant problem as many of the urban poor find housing in these settlements. With the expanding slum settlements comes a serious problem for many developing nations, that of finding a mechanism to improve these informal developments. These settlements are a symptom of poor urban governance and lack of financial resources causing the urban poor to be pushed into these dwellings and find themselves on the periphery of urban society, not only geographically but socially, economically and legally. Upgrading, integration and legalisation of these housing types is necessary if these peripheral suburbs are to be developed formally. Although many governments have tried top-down approaches of upgrade, these approachs have often failed to produce results as slum upgrades often lead to displacement of the original inhabitants who are ousted into areas even further to the periphery of urban centres. This thesis looks at alternatives to viewing settlements on the urban fringe as a quandary, by using a neoliberal theoretical framework (despite its many flaws), informal property markets in townships in Johannesburg, South Africa can be seen as a catalyst for wealth creation and local economic development. This is particularly important given the historical context of apartheid in South Africa and the segregation of the majority of the population into racially exclusive slums. The post-apartheid government has rallied to improve the lives of this group of poor and dispossessed people with the provision of decent housing a key aspect of this process. A neoliberal framework for economic development was embarked upon in South Africa, with the introduction of neoliberal economic policy (namely GEAR) in 1998, South Africa embarked on a process of reform to encourage market growth. This manifest itself in the ‘Breaking New Ground’ housing policy which adopted a neoliberal stance on Housing provision, and although not removing the role of government in providing low-cost housing, it strives for a market driven housing solution. With a shortage of over 1 million houses in the city, there should be every potential market orientated low-cost housing sector, yet capital within this property sector is often referred to as dead capital with no intrinsic value. This thesis challenges that view by determining the existence of Crisylida capital in township property assets. Crisylida capital is virgining capital in the low-cost property market that could lead to the accumulation of asset capital within this property group, estimated value of Crisylida capital in Johannesburg alone is R6.3 billion. Residents in low-cost housing in Township suburbs in Johannesburg recognise economic value in their dwelling, with only 21% of participants valuing their property at less than R10 000. Further, real estate agents working the township real estate market estimate that just over 50% of properties in these areas are valued at over R200 000. Within this property environment, security of tenure plays an important role in creating not only wealth creation but equally a sense of community ownership. Houses with tenure saw 37% of respondents interested or actively participating in community projects, this compared to 13% of respondents without tenure. This thesis points to a new understanding of low-cost property in Johannesburg, South Africa as a potential market worth billions of Rands that could inject wealth into the hands of marginalised communities. This in turn could assist in fostering sustainable socio-economic urban community within disenfranchised township suburbs.