SA Property Owners seek deeper Government engagement on land reform

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Commenting on the recent proposed bill to bar land sales to foreigners, South African Property Owners’ Association (SAPOA) CEO, Neil Gopal said no policy should negatively impact investor confidence in our national economy. Commenting on the recent proposed bill to bar land sales to foreigners, South African Property Owners’ Association (SAPOA) CEO, Neil Gopal said no policy should negatively impact investor confidence in our national economy.

Stakeholders in the Commercial Real Estate industry represented by the South African Property Owners’ Association (SAPOA) are seeking for constructive engagement with the National Department of Rural Development on land reform.

Rural Development and Land Reform Minister Gugile Nkwinti will introduce new legislation prohibiting foreigners from owning land in South Africa and limiting land sizes for all other owners in the country before the end of the year.

The Regulations of Land Holdings Bill would mean foreigners will only be able to lease land for 30 years. Ownership of vast tracts of land will also be regulated.

But first the new law will be sent to cabinet and after its approval there will be extensive public consultation before heading to Parliament.

As land reform becomes an increasingly hot button issue in SA, SAPOA is moving swiftly to engage in constructive dialogue with the National Department of Rural Development and Land Reform.

“No policy should negatively impact investor confidence in our national economy,” says SAPOA CEO, Neil Gopal.

Of particular concern to the commercial and industrial property sector is the Bill which requires that the nationality of land owners be recorded – something seen as a precursor to limiting foreign land ownership in SA.

“We believe that an appropriate institutional environment – applicable to South Africans and foreigners alike – is critical to ensure long-term growth and stability of the property sector,” Gopal said.

Gopal points to the OECD’s 2003 checklist for the foreign direct investment policies as an example of global best practice. Indeed, the checklist underscores not only the need for regulatory stability and minimal red tape, but also a non-discriminatory approach to both domestic and foreign investors.

SAPOA acknowledges the need to redress past injustices in the South African property market, says Gopal, and agrees a balance of financial, social and environmental goals is needed.

“However, we are steadfast in our belief that secure land tenure, promotion of both domestic and international investment, and the allocation of land based on highest and best use is the optimal approach,” he emphasizes.

SAPOA intends to start a discussion with the Department on this issue in the immediate future, with the aim of providing assistance and input from the perspective of commercial and industrial property sector, says Gopal.


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