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See investment opportunities for single-family houses
Build more resilient and equitable communities with our targeted indices calculated for each site.
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Spot high-margin opportunities with area-specific data on rental prices per room.
Unlock market potential
See only those properties that are clear from most important restrictions - like flood risk or high control zones. Then take a deeper look into each site - like if you need to carry out an environmental survey before construction.
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//////insights into the impacts their projects may have on the community and environment.
We empower property entrepreneurs with real-time market data, up-to-date regulatory knowledge, and
Why we're building OneCity
For OneCity Insights, we focus on the first step in the development process: finding the right investment opportunity. Choosing the right plot of land or property is a critical decision.
A property entrepreneur has hundreds of hurdles to jump before converting a derelict building or an empty plot of land into a successful venture. Some hurdles are predictable, and some are unique. And how a developer resolves them can make the difference between bankruptcy or a successful investment.
WCDF
Deon Van Zyl
«Information about land is not readily available to the public. So if you don't know you might waste money. So this to me is very crucial to know»
Challenge
Property Developer
OneCity Insights helps to find profitable investment opportunities that comply with planning regulation and are near services and jobs. This makes cities and communities more equitable and resilient.
City planners have developed strategies to overcome these challenges. However, rapid population growth and inefficiencies in land markets, public funding and delivery result in deepening problems. The greater the urban sprawl, the more infrastructure and public funding will be needed in the future. Urban sprawl cannot be undone once it has occurred, and the moment to tackle it is now.
The problem of affordable housing, accessible public transport and urban sprawl in South Africa is well known. While there are great efforts to build new housing, much of it is spread out in areas far from city centres. This means many South Africans live far from where they work.
City and Community
Challenge
How do we do it?
Sorting Opportunities by
Filtering out sites
In this release of OneCity Insights, we identify opportunities across the City of Johannesburg to develop single-family detached houses that fit the current property market climate.
To identify these opportunities, we go through 4 stages: we decide on Typology, filter out sites that do not fit our purpose or with high risks, then sort development opportunities from the best to the worst, and, finally, add property market data for each site.
To identify these opportunities, we go through 4 stages: we decide on Typology, filter out sites that do not fit our purpose or with high risks, then sort development opportunities from the best to the worst, and, finally, add property market data for each site.
Calculating additional Insights
Potential Development Coverage
8
Planning Risks and Incentives
6
7
Development Impact
Deciding on Property and Site Typology
1
Land Use Rights
2
Size and Shape
3
Planning Risks
4
Potential Development Coverage
5
Property Markets
9
We identified 181 753 opportunities in Johannesburg to develop or extend single-family detached houses that fit the present property market climate.
2 452, which is 1.5% of these opportunities, have high development potential and are close to amenities and public transport. Find opportunities near you or download a free sample report.
Subsidiary Dwelling Unit development is a popular model for many property owners in CoJ. The latest town planning regulation allows an owner of a property zoned Residential 1 to build up to two subsidiary dwelling units on the said property. Of course, subject to additional conditions, it is an opportunity for small-scale developers which simultaneously stimulates the densification and diversification of low-density residential areas.
The floor area of the subsidiary dwelling units cannot exceed 160m² or 90% of the main dwelling house. The overall development should also comply with the density and the site coverage criteria attributed to the area. These units may only be built in relation to an existing dwelling. By following these guidelines, property owners can expand a home or create an additional rental unit while staying within the parameters set by planning rules.
Subsidiary Dwelling Unit development is a popular model for many property owners in CoJ. The latest town planning regulation allows an owner of a property zoned Residential 1 to build up to two subsidiary dwelling units on the said property. Of course, subject to additional conditions, it is an opportunity for small-scale developers which simultaneously stimulates the densification and diversification of low-density residential areas.
The floor area of the subsidiary dwelling units cannot exceed 160m² or 90% of the main dwelling house. The overall development should also comply with the density and the site coverage criteria attributed to the area. These units may only be built in relation to an existing dwelling. By following these guidelines, property owners can expand a home or create an additional rental unit while staying within the parameters set by planning rules.
Land and Use Scheme Guidelines 2017 by the Department of Rural Development and Land Reform define the above typologies as Medium density for Type S, Low Density for Type M, and Very Low Density for Type L. It recommends which urban areas should accommodate these densities to achieve a balanced and fair city.
Despite these guidelines and the corresponding CoJ Land Use Scheme 2018, Johannesburg faces a lot of pressure from property developers to build on the urban periphery. Township establishments and re-zoning on the periphery feed urban sprawl and transport mobility problems.
Despite these guidelines and the corresponding CoJ Land Use Scheme 2018, Johannesburg faces a lot of pressure from property developers to build on the urban periphery. Township establishments and re-zoning on the periphery feed urban sprawl and transport mobility problems.
What is a Land Use Scheme (LUS)?
A Land Use Scheme is a set of rules for a given city that determines which uses are allowed for specific pieces of land in the city. The list includes everything from residential to commercial and industrial zones, with each zone having specific purposes assigned by law - meaning you cannot just start building anything anywhere. A Land Use Scheme not only sets out the various uses of land and buildings in a city but also lists what you can do with each category of land. For example: if your house needs more space and is in a Residential 1 area permitting a Subsidiary Dwelling Unit, you can extend your property without any Land Management Application - all you need is a Building Plan that complies with rules for Subsidiary Dwelling Units. However, in cases where an application needs to be made, you should carefully consider the provisions of the relevant Land Use Scheme and SPLUMA together with the Spatial Development Framework, Municipal By-laws and other documents before preparing any land management applications (see diagram).
A Building Plan (also called Consent Application) is the most straightforward and quick application. The application requires a minimum number of documents to support the evidence that the future development complies with the site parameters set by the Land Use Scheme. The full list of documents needed for the application is set by Municipal Planning By-Law and is available here.
A Land Use Management Application (also called a Land Development Application) is needed when the Primary Land Use Rights need to be changed (among some other cases) . It is also called an Amendment of Land Use Scheme or Rezoning. Depending on the development proposal, the case can be complex and require specialist knowledge. The process can take between 12 to 24 months. The full list of documents needed for the application is set by Municipal Planning By-Law and is available here. For the full list of cases that require a Land Use Management Application, see this manual.
By looking more closely at the identified sites, we found that some of them overlap. There are some larger plots divided into two (or more) smaller ones (fig. 6a). Thus, you have a number of small erven and a larger one that covers them all. Then there are those partially overlapping, meaning the erven are of different shapes or positions and one part is overlapping (fig. 6b). There are also cases with multiple overlapping plots (fig. 6c). What is wrong with these sites and how to know which are legitimate ones to consider?
By looking deeper into the attributes of the sites, we found that overlapping plots have different subdivision statuses – either a Registered Stand, SG Approved Stand or Proclaimed Township.
Registered Stands are the plots that are registered in the Deeds Office and have information on zone restrictions (e.g. height, density, coverage, etc.) SG Approved Stands and Proclaimed Townships are the ones not registered in the Deeds Office. To consider these, one needs to find out from the Deeds Office why the property is not registered. There are usually multiple reasons.
To be sure that one will not have problems with future development, we decided to consider Registered Stands only, meaning those registered in the Deeds Office - the main organisation that manages property rights
By looking deeper into the attributes of the sites, we found that overlapping plots have different subdivision statuses – either a Registered Stand, SG Approved Stand or Proclaimed Township.
Registered Stands are the plots that are registered in the Deeds Office and have information on zone restrictions (e.g. height, density, coverage, etc.) SG Approved Stands and Proclaimed Townships are the ones not registered in the Deeds Office. To consider these, one needs to find out from the Deeds Office why the property is not registered. There are usually multiple reasons.
To be sure that one will not have problems with future development, we decided to consider Registered Stands only, meaning those registered in the Deeds Office - the main organisation that manages property rights
We use two metrics to measure the shape of parcels (PSI): compactness and regularity.
- Compactness shows how far a land plot deviates from the most efficient shape - a circle. It calculates the ratio of a circumference of the equivalent circle to an actual perimeter of a land parcel.
- Regularity shows how close it is to a perfect rectangle. It calculates the ratio of the smallest possible bounding rectangle area (green boundary in Fig. 4) with a parcel area (black boundary in Fig. 4).
We use two datasets to calculate potential development coverage: building footprints provided by CoJ (available at GeoLIS) and Microsoft Building Footprints.
The GeoLIS dataset provides great accuracy but has these limitations:
However, we advise seeking more precise information (e.g. zoning certificate and on-site survey) on any particular property or site prior to making any decisions. Please refer to our Disclaimer.
The GeoLIS dataset provides great accuracy but has these limitations:
- Coverage. The dataset covers 24% of the CoJ including Randburg, Roodepoort, Sandton, Midrand, Baralink, and Jabulani and several priority zones (i.e. CBD and area along railway and BRT routes).
- Validity. The dataset is dated back to 2012. Therefore any development built after that is not recorded.
However, we advise seeking more precise information (e.g. zoning certificate and on-site survey) on any particular property or site prior to making any decisions. Please refer to our Disclaimer.
Property and Site Typology
It is vital to remember that the choice of typology creates a particular density ⓘ, diversity and sense of place. The higher density and diversity, the more of a "centre" an area becomes and the more services and intercity transport are required. Lower densities with no services and jobs around make residents depend on cars or extensive public transport routes. It makes living expensive and the city less healthy.
Conversely, mixed-use areas with diverse housing typologies and densities, balanced with public transport infrastructure and services, create more advantageous environments.
In this OneCity Insights, we use additional tools to the planning regulations to identify investment opportunities in locations that are favourable for the city and sought-after by leading investors.
Conversely, mixed-use areas with diverse housing typologies and densities, balanced with public transport infrastructure and services, create more advantageous environments.
In this OneCity Insights, we use additional tools to the planning regulations to identify investment opportunities in locations that are favourable for the city and sought-after by leading investors.
At this stage, we are looking exclusively into single-family detached housing developments in Gauteng. When this type of housing is mixed with services at the proper density it creates a quality urban environment and strong communities.
Even though Gauteng is the smallest province in South Africa by land area, it is one of the two largest property markets (along with the Western Cape). More than 3,000 detached single-family houses were built here in 2021 alone, making this market segment larger than flats and townhouses by value.
We have evaluated more than 200 single-family development projects in Johannesburg and Pretoria to identify the most sought-after housing typology.
The results provide a wide range of development opportunities varying in parcel dimensions, floor size, and the number of bedrooms. The typologies we have identified are: S – Small, M – Medium, L - Large, and SDU – Subsidiary Dwelling Unit ⓘ.
Even though Gauteng is the smallest province in South Africa by land area, it is one of the two largest property markets (along with the Western Cape). More than 3,000 detached single-family houses were built here in 2021 alone, making this market segment larger than flats and townhouses by value.
We have evaluated more than 200 single-family development projects in Johannesburg and Pretoria to identify the most sought-after housing typology.
The results provide a wide range of development opportunities varying in parcel dimensions, floor size, and the number of bedrooms. The typologies we have identified are: S – Small, M – Medium, L - Large, and SDU – Subsidiary Dwelling Unit ⓘ.
Property and Site Typology
01
| Risks & Constraints | Details | Importance Verdict |
|---|---|---|
| Parking | What is that?The Land Use Scheme and Spatial Development Framework (SDF) establish a requirement for a number of on-site parking bays of at least 30m2 each. There are three well-defined areas in the city with different requirements: Inner City, areas around public transport stations and Nodes as per the SDF, and the Rest of the City. The Rest of the City has the lowest requirements for the number of bays required.Source: Land Use Scheme 2018 (Part 6) and Spatial Development Framework How important is it for us?As we are focused on single-family detached houses built on sites of more than 250m2, the requirement is of very low importance. The maximum parking space required for a typology L would be two parking bays or 60m2. | 1 |
| Building restriction area | What is that?Building restriction areas establish the minimum distance from building boundaries to the street. The distance depends on the size of the site and equals 1 meter for sites less than 500m2 and 3 metres for larger sites.Source: Land Use Scheme 2018 (Part 5)How important is it for us?The minimum distance in metres between the building’s line and street boundary could be an additional restriction for new buildings in the dense environment of a city centre. However, for single-family houses, this restriction has a very low impact. Additionally, this restriction does not vary across the city and depends only on the size of the plot. For this reason, this constraint does not apply. | 0 |
| Wetland Audit | What is that?These are the areas that can be affected by marshes or swamps - sensitive ecosystems and difficult soils to build on.Source: The CoJ wetland audit layers are based on: National Spatial Development Framework, Integrated Development Plan (CoJ), Biodiversity Plan and National Environmental Management Act (NEMA), and Gauteng Provincial Environmental Management Framework.How important is it for us?Planning decisions in these areas need to be supported by an environmental survey and impact assessment. This could significantly affect the design of the building and, for this reason, has a medium impact on the development. | 3 |
| Dolomitic areas | What is that?These are the areas in CoJ with underlying dolomitic limestone rocks. These areas have additional soil/ dolomite stability risk.Source: Land Use Scheme 2018 (Section 14)How important is it for us?To get building permission in these areas, one needs to conduct a geotechnical survey which usually requires one to own the site (or have a permit from the owner). Additionally, due to ground conditions, these areas impose additional requirements for foundations and on-site infrastructure. For these reasons, these conditions have a medium impact on the choice of the site. | 3 |
| High control zones | What is that?These environments are sensitive to development activities. Source: Gauteng Provincial Environmental Management Framework How important is it for us?Only conservation should be allowed in this zone. Related tourism and recreation activities must be accommodated in areas surrounding this zone. For this reason, sites within these areas are excluded. | 5 |
| Environmental Control Areas | What is that?An Environmental Control Area is an area defined by the Municipality within which any development is subject to a list of supporting documents and impact studies. Primary uses are public and private open spaces. Consent Uses are Tourist Facilities, Holiday Accommodation, and Transmission Towers.Source: Land Use Scheme 2018 and National Environmental Management: Protected Areas Act 57 How important is it for us?Documents required: Site Development PlanEnvironmental Management PlanVisual Impact Assessment Overall this has a high impact on the development potential | 4 |
| Servitude Line | What is that?Servitudes are essentially areas of limited rights to use part of the land or the whole site. They could be rights of way to get to another site or maintain a piece of infrastructure (e.g. water pipe).Source: GEO LISHow important is it for us?As the servitude gives a right to its holder to do something with the other person's property or its part, it has a very high impact. However, servitudes usually cover only a small part of the site. For this reason, we exclude from our analysis only the sites where servitudes cover more than 30% of the site area. | 5 |
| Ecological Resource Zone | What is that?Ecological Resource Zones are areas beyond the Urban Development Boundary. Development there is not encouraged and is possible only through a Township Establishment procedure. Source: Spatial Development Framework 2016 (section 7.5), Nodal Review 2019 (section 4.1)How important is it for us?As residential development is discouraged in this zone, the sites in these areas are excluded. | 5 |
| Disaster Management plan | What is that?The policy focuses on preventing or reducing the risk of disasters. The Disaster Management Act prescribes the development of disaster management plans at national, provincial and municipal scales. For example wetlands can contribute to flooding mitigation and water quality improvement. When building on wetlands the risk of buffering should be mitigated and demonstrated in the disaster management plans.Source: Disaster Management ActHow important is it for us?The Disaster Management Centre will require the following documents or confirmation that the following concerns have been addressed before any development is finalised: Geotechnical surveyHydrological surveyStormwater assessmentEnvironmental impact studyThere is a high impact on new development because of the time-consuming confirmation process. | 4 |
| C-Plan(Protected Areas, Critical Biodiversity Areas, Ecological Support Areas) | What is that?These are areas identified by the Gauteng Conservation Plan Version as critical for maintaining biodiversity and must be integrated into land use planning and decision-making with considerations.Source: Gauteng Conservation PlanHow important is it for us?Detailed environmental impact studies are required for all development applications within these areas. For this reason, it has a medium impact on site choice. | 4 |
| Flood Risk Zones | What is that?These are areas prone to flood risk once in 50 or 100 years. No development is permitted in these zones, as well as river riparians and a buffer of 30 metres around them.Source: Land Use Scheme 2018 (section 49)How important is it for us?As no development is permitted in these zones, sites falling within their boundaries are excluded. | 5 |
| Incentive | Details | Importance Verdict |
|---|---|---|
| Urban development zone | What is that? The urban development zone (UDZ) is one of the most important fiscal and planning tools in South Africa to stimulate the renewal process in declining areas. Depending on the zone it could have tax allowances for investments made into the refurbishment of existing property or new development, relaxed zoning requirements and more. Source: Urban Development Zone How important is it for us? UDZ in the City of Johannesburg applies to the inner city. This area is characterised by high density, transport accessibility and commercial uses.As we are looking into low-density single-family housing, the importance for us of the UDZ defined in the inner city is very low. |
1 |
| JPC Land Regularisation | What is that? Land Regularisation is a program being delivered by the Joburg Property Company to transfer council-owned properties into the hands of residents. This is intended to optimise the use of the space and budget, and meet the goals of SDF 2040.“Over the next three to five years, the Joburg Property Company (JPC), through its innovative land regularisation programme, will transfer some 3 700 properties across Johannesburg into the hands of local residents.” Source: Land Regularisation Programme How important is it for us? The Property being transferred is mostly for commercial use and therefore is of very low importance to us. |
1 |
| Corridors of Freedom | What is that? Corridors of Freedom were introduced as new public transport routes based on the concept of the Bus Rapid Transport (BRT) system. The initial intention of the project was to link low-income, deprived areas with inner city and economic centres. The project was realised partially and is on hold at the moment. In addition to creating new transport routes, the project offered regulatory incentives for developers, e.g. reduced waiting times for planning approval. Source: How important is it for us? The project is considered highly controversial due to shortcomings in the design and delivery process. However, the system still works for townships and has the capacity to be improved and extended. We consider it as having medium importance at the moment. |
3 |
| Transformation Zone | What is that? The Transformation Zone consists of areas where public investment will be prioritised to improve these areas and make them new growth centres. These are equivalent to Integration Zones, defined in the Built Environment Performance Plan (BEPP). They include The Inner City, Corridors of Freedom, Randburg – OR Tambo Corridor, Mining Belt and Soweto, Metropolitan and Regional Nodes (as per Nodal Review), General Urban Zone and Local Economic Development Zones.” Source: Transformation Zone How important is it for us? The timeline of public investments in Transformation Zones, exact projects, their quality and their delivery are all highly uncertain parameters. Nevertheless, these areas are the focus of government funding for years to come. We consider the importance of this as low. |
1 |
| Consolidation Zone | What is that? Consolidation Zones are mostly low-density residential zones and, in contrast to Transformation Zones, are not a high priority for capital investment - except where there is a backlog of services. Density and development guidelines should be in line with the Nodal Review. Source: Spatial Development Framework 2040 and Nodal Review 2019/20 How important is it for us? Consolidation zones are areas that should not expect large public investments. This is because, in most cases, they have just enough infrastructure to accommodate some new development. Because the infrastructure is already there, we consider these areas of medium importance for our typologies. |
3 |
| Economic Nodes | What is that? Similar to transformation zones - Economic Nodes are areas of prioritised public funding. However, in addition to funding, these zones already have high economic activity and additional potential. Source: Spatial Development Framework 2040 How important is it for us? Because these zones combine plans for public investment and existing economic potential, these areas are of high importance. |
4 |
Filtering out sites
Examples of overlapping:
Residential property can only be built on land that has corresponding "Residential" Land Use Rights according to the Land Use Scheme ⓘ.
These "Residential" Land Use Rights could be Primary and Secondary and include: dwelling houses, dwelling units and residential buildings. If future development matches Primary Land Use Rights (e.g. you are planning to build a detached house on a land with Primary Land Use Rights that include dwelling houses) the process to obtain the permission is easy. You only need to submit a Building Plan ⓘ making sure it complies with set restrictions for density, height, setback and more.
In contrast, if your future development is permitted only according to Secondary Land Use Rights, you must submit a Land Use Management Application ⓘ and go through the rezoning process. The rezoning process is long and painful and, most importantly, requires the relevant land to be purchased by the applicant beforehand. The later is a substantial barrier for smaller entrepreneurs.
By identifying developable sites that do not require rezoning, we want to unlock development opportunities that are suitable for smaller entrepreneurs, in a market dominated by large developers.
The good news is that residential property is automatically permitted as Primary Land Use Right in 7 Zones: Residential 1-5 and Business 1-2.
These "Residential" Land Use Rights could be Primary and Secondary and include: dwelling houses, dwelling units and residential buildings. If future development matches Primary Land Use Rights (e.g. you are planning to build a detached house on a land with Primary Land Use Rights that include dwelling houses) the process to obtain the permission is easy. You only need to submit a Building Plan ⓘ making sure it complies with set restrictions for density, height, setback and more.
In contrast, if your future development is permitted only according to Secondary Land Use Rights, you must submit a Land Use Management Application ⓘ and go through the rezoning process. The rezoning process is long and painful and, most importantly, requires the relevant land to be purchased by the applicant beforehand. The later is a substantial barrier for smaller entrepreneurs.
By identifying developable sites that do not require rezoning, we want to unlock development opportunities that are suitable for smaller entrepreneurs, in a market dominated by large developers.
The good news is that residential property is automatically permitted as Primary Land Use Right in 7 Zones: Residential 1-5 and Business 1-2.
How do we find land with Primary Rights that fits our purpose?
Land Use Rights
02
Total number of suitable residential sites: 601 479, which is 92% of the original.
There are a total of 652 974 sites with Primary Land Use rights that fit the housing typologies we seek to build. However, because of overlaps, some of them are illegal. Why? ⓘ
By filtering out unregistered sites and keeping only those registered with the Deeds Office, we reduced the number of sites that fit our purpose from 652 974 to exactly 601 479 plots, which is 92% of the original total.
By filtering out unregistered sites and keeping only those registered with the Deeds Office, we reduced the number of sites that fit our purpose from 652 974 to exactly 601 479 plots, which is 92% of the original total.
Why do plot shapes matter?
What plot sizes are we after?
The shape of your land plot can significantly impact the feasibility and cost of future development. The perfect land plot requires minimum investment into it and, when developed, creates a well-positioned product for the market. Irregularly shaped land plots impose multiple restrictions on the position of the building and require additional site infrastructure. Particularly for smaller – parcels, the shape of the site can impose restrictions on the shape and efficiency of the building itself. Parcel Shape Index (PSI) ⓘ. is one way to measure how well-suited a parcel is for development.
By applying a PSI value of 0.8, we limit the number of sites having significantly higher development potential to 376 575 which is 58% of our original total.
Size and Shape
03
In the market analysis, we identified housing typologies that correspond to the erven range of 250 to 800 m2. Given that a developer could build more than a single property at once, what would be the maximum size of the site we should look for?
As we are supporting smaller entrepreneurs here, we decided to limit the maximum size of the plot to 2000 m2.
It means that once the internal access roads are built (or setback lines are accounted for) the 2000 m2 could accommodate up to 2 units of the typology L, or up to 6 units of the typology S. By limiting our search to this range we identified 423 093 sites in Joburg (65% of the original total).
As we are supporting smaller entrepreneurs here, we decided to limit the maximum size of the plot to 2000 m2.
It means that once the internal access roads are built (or setback lines are accounted for) the 2000 m2 could accommodate up to 2 units of the typology L, or up to 6 units of the typology S. By limiting our search to this range we identified 423 093 sites in Joburg (65% of the original total).
The sites with development potential are the ones that have actual built-up area coverage lower than the coverage permitted by the Land Use Scheme (in case of consent use) or Nodal Review 2019/20 and SDF 2040 (in case of rezoning). To calculate potential development coverage, we compared the existing built-up area (coverage) with the coverage area permitted by the planning documents. Important note about data and accuracy ⓘ.
By running the above calculations we identified 181 753 sites that have development potential. This figure includes sites with moderate development potential, usually an extension to the existing building’s coverage area of 30-50%. For the sites where the coverage could be increased by more than 50% the development potential is high, this could be a Subsidiary Dwelling Unit on Residential 1 or additional property in other zones. You can find the potential development coverage in square meters for selected sites in any given location in Johannesburg by purchasing OnecCity Insights Report.
Total of residential sites: 181 753, which is 28% of the total.
By running the above calculations we identified 181 753 sites that have development potential. This figure includes sites with moderate development potential, usually an extension to the existing building’s coverage area of 30-50%. For the sites where the coverage could be increased by more than 50% the development potential is high, this could be a Subsidiary Dwelling Unit on Residential 1 or additional property in other zones. You can find the potential development coverage in square meters for selected sites in any given location in Johannesburg by purchasing OnecCity Insights Report.
Total of residential sites: 181 753, which is 28% of the total.
How do we calculate?
We use image recognition technology and machine learning to calculate the development potential of each land plot. Together with market data, this gives an entrepreneur an intelligence of what return on investment can be achieved.
Potential Development Coverage
05
92%
50%
28%
58%
To decide on a new project, a developer needs to diligently check all of the risks, details and constraints associated with a property. Some of these checks are only possible on-site (e.g. technical surveys) and require a permit. Yet much information can be found in public registers and in official documents. For example, the Land Use Scheme 2018 contains some of the most basic and important details.
We analysed Risks & Constraints available in public registers, and explain what they mean and their importance for our development typologies. Finally, we make our Importance Verdict.
A score of 5 means no development is possible; these sites are excluded completely. Scores of 0 to 4 mean no to high impact; these sites receive grades from 0 to 4, which are subtracted from a base development potential of 10.
As an example, a site located in the Dolomitic Area will have a development Potential of 10-4=6.
Explore Risks and Constraints in detail ⓘ.
Total of residential sites: 323 994, which is 50% of the total.
We analysed Risks & Constraints available in public registers, and explain what they mean and their importance for our development typologies. Finally, we make our Importance Verdict.
A score of 5 means no development is possible; these sites are excluded completely. Scores of 0 to 4 mean no to high impact; these sites receive grades from 0 to 4, which are subtracted from a base development potential of 10.
As an example, a site located in the Dolomitic Area will have a development Potential of 10-4=6.
Explore Risks and Constraints in detail ⓘ.
Total of residential sites: 323 994, which is 50% of the total.
Planning Risks
04
Public Transport Accessibility Index
As follows from the name, the index calculates the proximity to public transport routes and stops. If the development does not have access to public transport within walking distance it means that residents depend on cars and development contributes to urban sprawl. Depending on how many different modes of public transport are available a development opportunity gets a grade from - 6 to + 6. Negative values mean the development contributes to urban sprawl, while positive grades mean it makes the place more walkable and mixed-use.
The following modes of transport are included in the calculation: Rea Vaya BRT, PRASA passenger rail, Gautrain train and Gautrain bus routes, Metrobus and taxi ranks. For each development opportunity, we searched for transit stops within a 15-minute walk. The more modes of transport are accessible the higher the grade. If there is no public transport stops accessible it means that the place is entirely car-dependent, and development opportunities get a grade of ‘-6’. If all available modes of public transport are available a site gets the highest grade of ‘+6’.
The following modes of transport are included in the calculation: Rea Vaya BRT, PRASA passenger rail, Gautrain train and Gautrain bus routes, Metrobus and taxi ranks. For each development opportunity, we searched for transit stops within a 15-minute walk. The more modes of transport are accessible the higher the grade. If there is no public transport stops accessible it means that the place is entirely car-dependent, and development opportunities get a grade of ‘-6’. If all available modes of public transport are available a site gets the highest grade of ‘+6’.
Local Amenities Index
Local Amenities Index is similar to the Nodal Review calculation: it assesses how close a given area is to jobs and services. However, the Local Amenities Index has some differences. It contains more amenities, for example, retail, leisure, and sports facilities (Nodal Review accounts only for municipal infrastructure: public schools, parks, and transport). It uses real pedestrian networks to calculate an area accessible within 15 minutes on foot. In other words, the Local Amenities Index calculates an actual travel time and is a guarantee that residents will not need a car to get their groceries. One could think of it as a more advanced Nodal Review calculation that is more accurate, always up to date and available nationwide.
In detail, for every address, the Local Amenities Index identifies how many amenities are available within a 15-minute walk. The location contributes to urban sprawl, getting a negative value if no services are available. The more services are available, the higher the grade is, and the more walkable and mixed-use the neighbourhood is.
We calculated the Local Amenities Index for each 250x250 meter cell of land. From every centre of a cell, we calculated a 15-minute walk area and counted all the commercial, educational, government and healthcare services.
Because services are of various priority, they are split into three groups and assigned distinct weights:
Finally, we calculate Local Amenities Index as 0.5 x of Necessary + 0.3 X Optional + 0.2 X Social for every 15-minute walk area in any given location.
In detail, for every address, the Local Amenities Index identifies how many amenities are available within a 15-minute walk. The location contributes to urban sprawl, getting a negative value if no services are available. The more services are available, the higher the grade is, and the more walkable and mixed-use the neighbourhood is.
We calculated the Local Amenities Index for each 250x250 meter cell of land. From every centre of a cell, we calculated a 15-minute walk area and counted all the commercial, educational, government and healthcare services.
Because services are of various priority, they are split into three groups and assigned distinct weights:
- Necessary - services one needs daily, i.e. shops, pharmacies, schools, and child care. These services are essential for every family and are assigned a weight of 0.5.
- Optional - services one uses when there is spare time (and money) - sports, leisure, going for a walk, eating out. Optional services are assigned a weight of 0.3. These amenities are indicators of a prosperous community.
- Social - services one needs only occasionally: hospitals, post offices, and police stations. These services are pillars of a safe and inclusive community and are assigned a weight of 0.2.
Finally, we calculate Local Amenities Index as 0.5 x of Necessary + 0.3 X Optional + 0.2 X Social for every 15-minute walk area in any given location.
Sorting Opportunities
06
Planning Risks and Incentives
In order to resolve some of the main challenges of South African cities, in addition to planning documents there are government incentives available to stimulate particular kinds of development. These include tax, regulatory, and other forms of help. New infrastructure and transport routes are also a form of incentive as they unlock land that was previously isolated. We consider these incentives together to decide what is the most relevant for our residential typologies. The Importance Verdict values are added to the resulting value of a site after it has been evaluated for Risks and Constraints Explore Development Incentives ⓘ.
For example,
1) The site is located in the Dolomitic area and received a value of 0-3=3 for Planning Constraints
2) The Site is - at the same time - in the Transformation Zone, which has an Importance Value of 1 for Development Incentives
3) The resulting combined value for planning constraints and development incentives is 0-3+1=-2.
Total of residential sites with the maximum number of incentives: 792
For example,
1) The site is located in the Dolomitic area and received a value of 0-3=3 for Planning Constraints
2) The Site is - at the same time - in the Transformation Zone, which has an Importance Value of 1 for Development Incentives
3) The resulting combined value for planning constraints and development incentives is 0-3+1=-2.
Total of residential sites with the maximum number of incentives: 792
07
Development Impact
Many cities are trying to promote more compact, mixed-use, walkable urban forms. Recent studies demonstrate many benefits of more compact and denser cities. For example, increasing building density by just 1% results in an 8.5% decrease in vehicle mileage. It reduces energy consumption by 7% and public spending by 14%. However, there are harms too. Higher densities contribute to the inflation of property prices and rent rates.
Johannesburg is on the same track - a large part of its planning arsenal aims to create dense nodes and equitable, walkable neighbourhoods. Nodal Review 2019/20 is one of the key and most recent policy pieces for the City of Johannesburg that promotes densification balanced with the provision of amenities and a transport system.
However, Nodal Review 2019/20 is a policy limited by the city boundaries of the City of Johannesburg. It is based on static data and does not include all social infrastructure and services.
For this reason, we developed our own indices: Public Transport Accessibility Index ⓘ and Local Amenities Index ⓘ. These indices demonstrate if development opportunity contributes to urban sprawl or compact and walkable urban structure. These indices are designed to scale nationwide and help property entrepreneurs see the real potential of a location nationwide and how this extra density is balanced with the provisions of transport and services.
Negative values of the indices mean that the new project contributes to urban sprawl, while positive values mean an area will benefit from an extra density.
To get an instant measure for a new project we created Development Impact Gauge (see fig.10) that combines two indices. The values of the gauge range from -6 for the worst impact to +6 for the projects with the best impact on the city and the community.
Johannesburg is on the same track - a large part of its planning arsenal aims to create dense nodes and equitable, walkable neighbourhoods. Nodal Review 2019/20 is one of the key and most recent policy pieces for the City of Johannesburg that promotes densification balanced with the provision of amenities and a transport system.
However, Nodal Review 2019/20 is a policy limited by the city boundaries of the City of Johannesburg. It is based on static data and does not include all social infrastructure and services.
For this reason, we developed our own indices: Public Transport Accessibility Index ⓘ and Local Amenities Index ⓘ. These indices demonstrate if development opportunity contributes to urban sprawl or compact and walkable urban structure. These indices are designed to scale nationwide and help property entrepreneurs see the real potential of a location nationwide and how this extra density is balanced with the provisions of transport and services.
Negative values of the indices mean that the new project contributes to urban sprawl, while positive values mean an area will benefit from an extra density.
To get an instant measure for a new project we created Development Impact Gauge (see fig.10) that combines two indices. The values of the gauge range from -6 for the worst impact to +6 for the projects with the best impact on the city and the community.
08
Potential Development Coverage
At this stage we use the calculations for potential development coverage to sort sites fom the best to worst. The values are calculated in square meters and available OnecCity Insights Report for Johannesburg. Download the sample report.
09
Development Incentives
In order to resolve some of the main challenges of South African cities, in addition to planning documents there are government incentives available to stimulate particular kinds of development.
These include tax, regulatory, and other forms of help. New infrastructure and transport routes are also a form of incentive as they unlock land that was previously isolated. We consider these incentives together to decide what is most relevant for the residential typologies of this case study. The Importance Verdict values are added to the resulting value of a site after it has been evaluated for Risks and Constraints.
For example,
1) The site is located in the Dolomitic area and received a value of 10-4=6 for Risks and Constraints.
2) The Site is at the same time in the Transformation Zone, which has an Importance Value of 3.
3) The resulting Development Potential of the site is 10-4+3=9.
For example,
1) The site is located in the Dolomitic area and received a value of 10-4=6 for Risks and Constraints.
2) The Site is at the same time in the Transformation Zone, which has an Importance Value of 3.
3) The resulting Development Potential of the site is 10-4+3=9.
Calculating additional Insights
09
Property Markets
We ranged all plots against these price bounds and attributed each to one of the price categories. The price category for each land plot is provided in the OneCity Insights Report.
Property rental market is an important benchmark to evaluate potential returns on investment. To account for it, we studied listings published on property marketplaces (e.g. Property24) which provided us with current rental rates and their spatial distribution.
We analysed the spatial distribution of listings in Johannesburg by aggregating the prices by Main Places boundaries according to the latest Census. Each area has been categorised based on average rental prices per room within its boundaries. We used a total of 3 price categories: low, medium, and high. Low corresponds to less than R 4000 per month per bedroom, medium is R 4000 - 8000; high is more than R 8000.
We analysed the spatial distribution of listings in Johannesburg by aggregating the prices by Main Places boundaries according to the latest Census. Each area has been categorised based on average rental prices per room within its boundaries. We used a total of 3 price categories: low, medium, and high. Low corresponds to less than R 4000 per month per bedroom, medium is R 4000 - 8000; high is more than R 8000.
Conclusions
In the current version of OneCity Insights, we identified 181 753 opportunities in Johannesburg to develop or extend single-family detached houses that fit the present property market climate. The 6198 of these opportunities have high development potential and are close to amenities and public transport. Find opportunities near you or download a free sample report.
Sites filtration process:
You can see the interactive map and find your development opportunities in Johannesburg
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Sites (land parcels)
- land use rights
- registration status
- size
- land use rights
- registration status
- size
Parcel Shape Index
Sources
Constraints
Building footprints
Amenities
Public Transport
Property markets
Incentives
Coverage restrictions
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