Minister of Public Works and Infrastructure, Dean Macpherson, has announced plans to dispose of over 1,600 government buildings and properties as part of a broader strategy to reduce costs associated with leasing properties, which amounts to more than R500 billion annually.
During his He noted that the department is eager to repair and invest in inner-city areas, but also needs to identify assets that do not contribute to its core mission.
Urban Renewal and Job Creation
Macpherson stated that the government’s work is about two things: ensuring that the State saves money on costly leases and puts that money into its own accommodation, and driving inclusive growth and job creation in inner cities, such as Johannesburg. The Minister also mentioned that the department will be seeking to trim down its non-core stock of buildings and properties.
Current estimates have placed government property ownership at more than 88,000 buildings and 5 million hectares of land. The government is moving ahead with plans to establish a new state-backed property investment mechanism, as reported by the South African Government website.
Disposal of Properties
The Minister said that the State does not need to own the amount of buildings, property, and assets that it does, and has identified at least 1,600 properties for disposal that do not form part of the core of its mission. However, if there are people residing in these buildings and properties illegally, the government will also take action.
Here are some key points about the government’s property management strategy:
- Disposal of over 1,600 government buildings and properties
- Investment in urban revitalisation programmes
- Tackling the issue of dilapidated and hijacked buildings
- Establishment of a new state-backed property investment mechanism
The ambitious Johannesburg Deeds Office project, touted as the first high-rise and government-led project in the city in the last two decades, is currently at 78 percent completion. Macpherson said that the government wants to replicate this project across the country.
