No services, but plots sell for up to R600 000 each.
The South African Property Owners Association (Sapoa) on Wednesday called for action “against the growing issue of illegal multimillion-rand property developments in Tshwane”.
This comes as more information becomes available regarding the illegal development of hundreds of houses in the Leeuwfontein area just outside Pretoria on the road to Cullinan. Moneyweb has also been alerted to several similar illegal developments elsewhere in Tshwane and is currently investigating.
Moneyweb on Monday reported about the development on portion 120 of the farm Leeuwfontein where luxury houses have been built on land that has not been subdivided, no township establishment has been done or services installed, and no building plans have been approved.
The City of Tshwane would not provide any information about the matter, save to say that the city is “investigating the existence of the development in question to determine as to whether there are any applications submitted for infrastructural and/or residential developments”.
City spokesperson Lindela Mashigo said: “Once these investigations are completed, we will be able to give an update.”
The same Mashigo however stated to The Sowetan in 2018 that the structures erected at that stage were illegal because the owner at the time – Jannie Lombard – had failed to apply for township development.
He said then that the city would investigate and serve Lombard “with a notice”.
Moneyweb has established that the development started in 2017 and consists of about 280 residential plots plus the commercial section.
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Landowner’s response
The current owner of the 21-hectare smallholding, Shadrack Thema, admitted to Moneyweb that the development is illegal.
He says he has been trying to formalise it since buying the property in 2020. The applications are with the City of Tshwane for consideration and are at an advanced stage, he says.
He says he bought the property because he wanted the front part, which is zoned for commercial purposes, and undertook to complete the proclamation of the development when he took ownership. “I am also a businessman,” he says.
Thema says he has plans for a filling station on the commercial part of the property.
According to Thema, the residents are currently using water from boreholes and electricity is illegally connected to the City of Tshwane’s supply. Residents are doing their own refuse removal.
Thema says the plots were sold by Lombard, the previous owner, for between R60 000 and R160 000.
He adds that he has not sold any plots and has no plans to do so before the township has been proclaimed.
Asked why he has allowed buyers to continue building without the necessary approval, he said they have bought the plots, how can you stop them?
He would like to get things finalised and points out that the City of Tshwane can earn service charges and rates once the formalisation has been completed, but it is moving very slowly.
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Previous owner’s response
Moneyweb spoke to Lombard, who denied that the development is illegal. He said the land was zoned for development.
When Moneyweb challenged this, Lombard corrected himself, saying it was “earmarked” for such. He emphasised that the township establishment is “in process” at all times.
According to Lombard, people wanted to squat on the land. “They wanted to grab the land.” He wanted to rather develop it, “but Tshwane would not come to the table”.
Lombard then told Moneyweb the conversation was “off the record” and would not answer questions about how many plots he had sold or how much money he made from the sales.
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‘Leeuwfontein’ plots being sold
In the meantime, Moneyweb has established that plots are still being sold in another illegal development on the two adjacent smallholdings, portions 118 and 119, at prices ranging between R150 000 for 300m2 and R600 000 for 1 200m2.
The marketing material refers to the development as the “proposed formalization of Leeuwfontein township” and cites the two portions.
Asked about the legality, the salesperson said if the City of Tshwane acts against the developer, it will merely impose a fine, which presumably will limit the risk to potential buyers.
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Impact
Dawie Malan, developer of Mooikloof Estate, says established developers don’t want to do business in Tshwane anymore, because the metro is “obstructive” with little cooperation from officials.
He adds that the city’s building inspectors fail to go out and stop the illegal construction.
“They must police it and have it demolished.”
He says developing a township lawfully is very costly. Developers must make a contribution to bulk services, which he estimates can be about R3 million for a development with 100 plots. “That is before you have installed the services.”
Installing infrastructure for electricity, water and sewerage can cost around R15 million – and that is without the cost of roads and the land itself.
Malan says the metro will never allow a development to use groundwater. “You must provide piped water and show them where it will be coming from.”
Developers who do things right must now compete with rogue developers who do not have the same expenses, he says.
Sapoa CEO Neil Gopal states: “Illegal developments undermine the investments of compliant property owners, who face a range of negative impacts – from declining property values to increased crime rates and service interruptions.
“We are particularly alarmed at the normalisation of flouting development regulations, which ultimately decreases oversight in property development.”
This article was republished from Moneyweb. Read the original here.
