Rode is right. This new regulation will only have the effect of depressing the property market and deterring foreign investment which would lower GDP growth and confidence in the SA economy as a whole as this amounts to heavy handed political interterence in the economy by the ANC which seems to be looking after it's own elite interests and the 2009 election by making populist promises. Social engineering does not work now as it did not work under apartheid.potentially huge results!
Developers await decision on inclusionary housing policy
(Building) CAPE TOWN (July 27) - After months of waiting, South African developers will soon be hearing the final outcome on the national housing department’s policy on inclusionary housing.
Rode says government should tread carefully to avoid unintentionally turning off the new-supply tap. The effect might be prices of existing houses shooting through the roof. “After all, no developer will commit to a deal with the authorities knowing full well that his project will not sell,” says Rode.”
Submitted: 27 Jul 2007