Chairperson of the PPRA Board, Mr Steven Ngubeni Board Members of the PPRA present
Acting CEO Ms. Thato Ramaili
Business Leaders in the Property Sector Good afternoon
The meeting we are having today is long overdue, I realised that since joining the portfolio, I had not had an all-industry engagement.
I have meetings with some of you individually as organisations and individuals, but I thought it was important for us to set aside a day and put our heads together and reflect on how we as a sector, can better serve our country, socially and economically.
Over a year ago, we launched the Property Practitioners Regulatory Authority (PPRA) which was then replacing the Estate Agency Affairs Board (EAAB).
The launch of the PPRA marked the coming into operation of the Property Practitioners Act. The aim of the new Act was the strengthening the regulatory aspect of the human settlements sector.
As we launched, I was determined that the challenges that had become the hallmark of the EAAB should not be carried over to the PPRA.
I challenged the leadership of the PPRA that my priority coming into the sector was to stabilise the portfolio, both the National Department and the Entities and the PPRA was not going to be an exception.
I said to the new Board at the time that I do not compromise on corporate governance. This includes principles of transparency, accountability, and security.
All these principles needed to be observed so that an entity could function properly with a safe and healthy work environment in which the entity is best abled to achieve its mandate, so that the entity could come out of the ICU.
I told them that I expected individuals within the PPRA to act within a system of rules, policies, and practices that engender respect for one another and for the established structures of governance and how they function.
What was also a critical element in turning around the entity was the improvement in the relationship between the entity and the sector. The EAAB had completely mismanaged. I challenged the leadership to go and interact with the sector and forge a working relationship.
The feedback that I have been receiving is that the PPRA has been working together with the sector. Not to say that there are no challenges and there is no room for improvement, but the revival of this working relationship is something that we should nurture and strengthen.
I am also pleased to report the feedback I have been getting is that the entity Is indeed turning a new leaf. I believe that we now have good leadership that stabilised the entity and they need all our support to continue on this path.
The PPRA has three main functions which are to regulate the affairs of all property practitioners; to allow for transformation in the property sector and to provide for consumer protection.
The PPRA cannot achieve these functions by itself but requires partnership and collaboration with the sector, especially the private sector, to be able to fulfil its mandate
So as we are gathered here, we are not only here to discuss the PPRA and how it is carrying out its mandate. Much as that is important, we are here to discuss the property sector, challenges and opportunities and more importantly how we can work together to create a growing and inclusive property sector.
According to the 2021 Property Sector Charter Council (PSCC) report, the financial, real estate and business services sectors accounted for 22% of the country's real value added, generated by producing goods and services.
According to the same PSCC study, the South African property market contributes R5.8 trillion, thus significantly contributing to GDP.
In 2018, one of South African Reserve bank’s (SARB) report also estimated that SA’s total fixed capital stock is worth R7.6 trillion.
This means that property accounts for 76% of SA capital stock outside of machinery and transport.
As you can see with the numbers, this is a very important sector of our economy. The wealth that it generates needs to be shared equitably and I think working together, we can grow this pie and share it.
I am cognisant that the property market is still reeling from the impact of the COVID- 19 pandemic but there are great signs now there is strong recovery. In the first quarter the financial year, real estate & business services grew by 0,6% and I think this will improve going forward.
There are opportunities in areas such as student accommodation, social housing and so on.
There are several areas that we must look at that are critical for growing and transforming the sector and this includes:
- capacitation and enterprise support for historically disadvantaged property practitioners;
- support of existing SMME’s owned by historically disadvantaged property practitioners
- promotion of the standard of training and development of historically disadvantaged property practitioners. We need to see more young people getting into the sector.
- supporting existing historically disadvantaged property practitioners to become principal property practitioners and owners of business property practitioners.
- facilitation of ownership of and participation in property investment enterprises
- enabling the transformation of property ownership in South Africa by providing grant support (through the Transformation Fund) to historically disadvantaged property practitioners, who are in the business of developing residential properties in the affordable and secondary housing markets.
How we can work together to accelerate the first home finance programme so that all market segments receive the quality of service to higher segments of the market.
Over and above this, we must discuss the issue of modernization and digitization. The only way that in this day and age we are going to improve the ease of doing business is through digitization.
I must reemphasize that the only way we can get this sector working is to work together.
I don’t want to talk for too long because today I am here to listen to you so that we can assist us to improve the way we serve, but more importantly to grow the sector and make it inclusive.
