Company

Introducing the SafDev Group

March 2016 marked the 19th anniversary of the SafDev Group. SafDev was established in 1998 specifically to address the housing needs of disadvantaged communities, of South Africa. SafDev has an infrastructure capable of delivering projects nation wide using our current networks, associates, and project specific partners.
SafDev Holdings is a property sourcing, planning and servicing company. Its primary role is to identify, rezone and add utility services to undeveloped (green fields) land for the purposes of selling to building (top structure) developers. In so doing the company adds significant value to the underlying land asset allowing the increase of its market value. The time taken and the size of the augmentation in value underpin the company’s ability to make profits.
The uniqueness of the business model is the company’s ability and willingness to:
1. Absorb early phase market risk through the financing of the land, planning and serving aspects of the land development process
2. Combing multiple discrete steps and thus skills within the early phases of the property development value chain
The core business activates are thus defined as follows:
1. The identification of high value potential properties
2. The securing and financing of ownership
3. The planning, rezoning and proclamation of properties
4. The provision of infrastructural services
5. The selling of planned, proclaimed and serviced land to building

SafDev Approach

A central theme running through the SafDev approach is one of:
Inclusivity – trying always to spread the benefit of a successful project and continually seeking local community involvement from unskilled labor all the way through to equity partnerships
Strategic Alliances – finding the best possible people, particularly in new areas of endeavor, to advise, participate, joint venture, partner, etc.
Integrity – maintaining a high level of honesty, transparency, and integrity throughout the development process.

SA Housing Typologies

Subsidised housing:
The Gauteng Department of Local Government and Housing (gdlgh) is allocated on a yearly basis a housing budget (3-5 year budgets having to be approved by National Government). The fully subsidised housing grant per unit (beneficiary) is around R80 000 ($11 400) which excludes MIG funding (Municipal infrastructure grant), PIG funding (Provincial infrastructure grant), various professional appointments, and any other form of cross subsidy as a result of monies being (over) recovered from affordable housing units within the same mixed use development. The true (overall) cost amounts closer to R 230 000 ($32 850). The minimum house size for these types of units is 40 square meters (430 square feet). The units typically are free standing and are built on a 250 square meter (2 690 square feet) stand (lot), and provided with a water borne sewer system, running water, a surfaced road and a managed stormwater system. Absent is the provision of electricity although the most recent projects have all provided the conduits for future wiring. In order for somebody to qualify for a subsidised unit, he or she needs to have proven that their combined monthly household income is less than R1 500 ($215). The beneficiaries do not pay for these units and are chosen from a waiting list, some of who might have been waiting for 15 plus years. The current housing backlog in this segment is around 2 500 000 units. The industry has delivered some 2 000 000 units over the past 10 years.
Affordable housing:
These are housing units which are sold on the open market which range in selling price from around R350 000 – R650 000 ($50 000 – $92 850). These units are funded with home mortgages with the buyers having contributed 10-20% by way of a cash deposit. Typically these are freestanding units on a 300 – 500 square meter (3229 – 5382 square feet) stand (lot).Sectional title housing: these are usually 2-5 storey walk-ups. Priced from R400 000 – R900 000 ($57 150 – $128 600). Here the owners only hold title to their particular unit with the rest of the development being communally held. Similar to the American condo developments.
Cluster housing:
These you would refer to as houses within a gated community. Prices ranging from R850 000 – R20 000 000 ($121 430 – $2 850 000). This is the most popular housing type amongst middle to upper class buyers.
Freestanding housing:
These range in price as well as locality and form the largest portion of the South African housing type.