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SAPOA raises concern for growing issue of multi-million illegal property developments

SAPOA raises concern for growing issue of multi-million illegal property developments

Research conducted by SAPOA on the impact of illegal building activity in Polokwane shows that it is not a new phenomenon in the city – and SA’s other cities, rather, it is perpetuated by temporary prohibition on new developments, inefficient processing of development applications, and insufficient regulation.

This unregulated expansion threatens lawful investments and raises significant concerns amongst members, whose properties are adversely affected by this destabilising trend,” says SAPOA who also highlights that these developments are eroding property values, straining municipal infrastructure, and placing undue pressure on compliant property owners who adhere to City regulations.

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 normalization of flouting development regulations, which ultimately decreases oversight in property development,” comments SAPOA’s CEO, Neil Gopal.

The effects of illegal developments in Polokwane are evident with increased pressure on service delivery infrastructure, opportunity costs related to municipal revenue generation from property rates and taxes, and the normalisation of regulatory flouting and decreased oversight on property development.

Despite a few municipalities acting against illegal land use, there appears to be a lack of political will to consistently enforce bylaws across various sectors.

Gopal emphasises the necessity for fair application of laws and regulations, urging that land use management systems be strictly enforced and that municipalities plan for legal expertise and costs in addressing illegal developments.

The research underscores the significant economic implications of illegal development in Polokwane, highlighting that from a municipal revenue perspective, the city loses R323.36 million annually in rates, taxes, and utility fees due to illegal developments.

While we support the principle of responsibly addressing illegal activities, it is crucial that this does not come at the cost of existing ratepayers. We urge the municipality to strengthen its land use control unit and appoint additional planning control officers to help combat illegal land use practices.”

SAPOA says that all parties responsible for initiating and perpetuating illegal development should be prosecuted. If not, the Public Protector should initiate an investigation into these matters. “It is imperative that the national government and current and past stakeholders take action to remedy this situation.

We are willing to partner with local authorities to attract investment and development, creating employment opportunities and supporting entrepreneurship within our communities,” concludes Gopal.

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