September 5 2025 15:00
Vanessa Murray, Divisional Executive of Property Finance at Nedbank CIB
SOUTH AFRICA
Nedbank Corporate and Investment Banking (Nedbank CIB) partnered with International Housing Solutions (IHS) at the 17th IHS Affordable Housing Conference, this week in Houghton, Johannesburg .
Themed ‘Foundations for the Future: Housing the New World’, the event looked at how important investing in affordable housing is for South Africa if the country is to get out of its malaise. A recent report by global polling company, Ipsos, showed that 8 in 10 South Africans feel the country is going in a bad direction but investment persists.
The conference held on Wednesday September at the Houghton Hotel, was attended by 373 people.
“Affordable housing deserves a place on the infrastructure agenda because location and build quality are what make homes truly affordable,” said Vanessa Murray, Divisional Executive of Property Finance at Nedbank CIB.
“When people live close to work, their travel time and transport costs decrease, positively impacting overall household expenditure. We finance developments that deliver measurable outcomes for both residents and investors, with design choices that improve energy and water efficiency. While the additional capital outlay can range from 4% to 11%, the payback starts almost immediately through electricity and water savings. This is a high-demand, fit-for-market segment, where micro-location, build quality, and strong tenant and leasing management are critical,” she said.
“Across well-located projects in this segment, we are currently seeing occupancy rates of around 98%, when the product truly meets market needs. Developers have shown resilience in delivering affordable housing over the years. Municipalities can accelerate progress by maintaining local infrastructure and streamlining approval processes,” she said.
“In our portfolio, the product has evolved from basic houses to lifestyle-orientated homes,” said Rob Wesselo, Group Managing Director of IHS.
Rob Wesselo, Group Managing Director of IHS
“People are choosing to live closer to jobs, with amenities like workspaces, cafés, and gyms on their doorstep. That shift is now standard, and capital is responding. South African pension funds are investing at scale, with commitments in the billions of rand through dedicated funds and mandates. Development finance institutions seeded early transactions and are now expanding the model into new markets. With stronger growth, capable local authorities, and reliable infrastructure, the sector is poised to scale rapidly,” he said.
Wesselo said inner-city success depended on consistent city management that protected both residents and capital. “When buildings are neglected or hijacked, services collapse, crime increases, and asset values decline. That is why partnerships with municipalities are essential to unlock investment at scale,” he said.
Nedbank CIB and IHS highlighted recent projects that demonstrate how different delivery models succeed when fundamentals were in place. IHS’ Circa Illovo, an office-to-residential conversion near Sandton, combines rental and for-sale components. Rental demand has been resilient during the high interest rate cycle, while sales improved as rates eased, Wesselo said. Lesedi Village in Mahikeng is a greenfield development of freestanding homes in an urban-rural node. It is among the first projects in that area funded by IHS, supporting both housing delivery and broader regional development.
“Our priority at this year’s conference is a clear, practical commitment to collaboration,” Murray said. “We want stakeholders across the public and private sectors to work together to reduce the housing backlog by improving township planning approval turnaround times, ensuring dependable local infrastructure, and backing investable, well-located projects,” she said.
alistair@propertyflash.co.za
