Theses and Dissertations (Construction Economics)

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Establishing a universal model to evaluate the adequacy of shelter for housing
(University of Pretoria, 2022-09) Cloete, C.E. (Christiaan Ernst); alissa.terblanche@tuks.co.za; Terblanche, Alissa Agneta
The right to adequate housing is recognised as a basic human right, but the concept of adequate housing is ill-defined. This research aimed to establish a universal model that can be used to evaluate the adequacy of shelter for housing globally. In a qualitative study using a grounded theory approach, the official housing regulations/legislation/policy/code/standards of 42 countries were analysed. As per grounded theory, the data was open coded, axially coded and selectively coded. It was established that 27 consistent universal elements occur across the sample. These can be divided into five categories. Allocation of a percentage to each of the elements facilitates the quantitative comparison of housing internationally. The data is validated by the data itself as per grounded theory, and application of the model is illustrated by a case study. The model provides a framework to assess the adequacy of shelter for housing universally.
A framework for the development of a mass valuation standard in South Africa
(University of Pretoria, 2022-11) Yacim, Joseph; Zulch, Benita; stevenngubeni@icloud.com; Ngubeni, Steven Piet
The observed prevalence of objections to the municipal valuation rolls in the metropolitan municipalities in South Africa suggests the existence of valuation inaccuracy. Research has revealed that valuation inaccuracy is more prevalent in mass valuation compared to single property valuations. It is also attributable to the absence or lack of valuation standards guiding professional valuers on mass valuation. Most countries using ad valorem tax subscribe to the notion of standardising valuation practices with the hope of improving valuation accuracies. Thus, the international valuations fraternity takes a leaf from the International Association of Assessing Officers (IAAO’s) Standards for Mass Appraisal of Real Property. The research also revealed that while many countries recognise the IAAO’s standards, there is a compelling case for localisation of mass valuation standard. South Africa, as a free-market economy, is no exception to this international movement. The localisation of standards by its very nature requires a clearer understanding of the local socio-economic and cultural contexts. Thus, the main objective of this study was to investigate and evaluate the use of valuation principles and practices for mass valuation with a view to designing a framework for the development of a mass valuation standard for the South African property market. A mixed method approach, which entails collecting requisite information through interviews, surveys, focus group discussion and secondary (example property) data, was adopted for the study. Consequently, purposive and snow-balling sampling techniques were used to identify the interviewees, survey and focusgroup participants, while the example property data was supplied by the City of Johannesburg. The data collected through interviews and focus-group discussions were analysed using the data analysis spiral approach. The data collected through the questionnaire was subjected to a simple statistical analysis. Additionally, statistical tests including, the Assessment Sale Ratio (ASR), the Price-Related Differential (PRD), the Price-Related Bias (PRB), the Coefficient of Dispersion (COD), the Mean Absolute Percentage Error (MAPE), and the Root Mean Squared Error (RMSE) were used to analyse the sampled property data. The results garnered from the analysis of the interviews, and the questionnaire survey, revealed imperfections in mass valuation accuracy and uniformity in South Africa. The results on the selected statistical measures show the scores of 0.97 for the ASR, 1.022 and -1.01 were for PRD and PRB, respectively. In addition, the scores for the COD, RMSE and the MAPE were found to be 9.60%, R40 000.00 ($2 281.52) and 23.5% respectively. The scores on the first three statistical measures are all within the parameters of acceptability of the IAAO standards, while the last three measures do not have predetermined standards. Overall, the results suggest negligible degree of inaccuracy and lack of uniformity which denotes under-valuation in some property classes such as the agriculture, industrial and commercial properties. These results of the study led to the development of a framework for the development of mass valuation standard for South Africa. It also led to the formulation of questions for the focus-group discussions, which were used to test and validate the proposed framework. These questions focused on whether the proposed framework offers’ solutions aimed at improving valuation accuracy in South Africa. The proposed framework addresses (1) the process of developing the standards and (2) high-level discussion of substantive contents of the standards. Thus, the proposed framework was affirmed by both focus groups, since it provides a simplified guide that stakeholders involved in the development of mass valuation standard could use.
Barriers to the implementation of Lean construction in South Africa
(University of Pretoria, 2024-02-28) Cruywagen, J.H.H.; yljacobs@gmail.com; Jacobs, Yvonne Leonie
This study aimed to identify the barriers to the implementation of Lean construction practices faced by practitioners in the South African construction industry. A literature review was carried out on the barriers present in the construction industry in South Africa, and elsewhere in the world. A survey was sent to practitioners in the Construction Project Management and Construction Management professions in South Africa. The data collected was used to determine if barriers found elsewhere in the world are also prevalent in the South African context. The data was also used to establish if barriers unique to the South African construction industry existed. The most prevalent barriers elsewhere in the world were organised under five themes, namely organisational, environmental, labour/workforce, material, and exogenous barriers. Barriers under all five categories were found in the South African construction industry. Barriers unique to the South African Construction industry were identified. These barriers include lack of skills, unrealistic CPG targets imposed on government contracts, community and business forum involvement, presence of construction mafia, lack of knowledge in management SMME’s on construction projects, and client retaining authority of key responsibilities of the Principal Agent. These issues create barriers to the implementation of Lean construction practices as they hinder the flow on projects and do not contribute to the focus on value mapping and creation for the end user. To overcome the identified barriers, institutions need to move away from the traditional transformational view of construction processes and linear view of the construction program. This study benefits stakeholders in the South African construction industry by informing business models and current practices to be more adapted to the successful implementation of lean construction practices. The research also benefits educational institutions, built environment councils and government policymakers to inform them of the barriers which can be overcome by shifts in existing policies.
Framework to develop a credible final accounts system for South African construction projects
(University of Pretoria, 2024-03-30) Cruywagen, J.H.H.; lydia.carroll001@gmail.com; Carroll, Lydia Christina
During the post-contract administration of construction projects, the project team must produce a final account (FA) that incorporates all the information that signals the final agreed sum that the employer will pay the contractor. It includes payment for any work conducted by the contractor through the main contract, as well as any loss and expenses associated with any extension of time and any other contractual claims. Different FA formats have been developed by professional consultants with various approaches and processes to accommodate different project requirements and conditions of contract (CoC). Currently, there is a lack of understanding of the FA process, which results in material irregularities. Therefore, proper financial and contractual administration during project delivery should ensure that FAs have high standards with no gaps, including appropriate supporting information. The research methodology was based on reviewing of current literature as well as conducting interviews with professional Quantity Surveyors currently involved with construction projects within South Africa. The research findings suggest that to ensure an improved FA, there must be recognition that the FA process starts before the construction period and continues throughout. Therefore, these FA mechanisms should be included in the conditions of contract (CoC), and a final account project execution plan (FAPEP) should be established as soon as possible from commencing a project. It is of utmost importance to retain all records pertaining to all FA items during the project’s execution, which serves as supporting information for the agreed FA. Therefore, each competent team member should understand their role in the FA process to ensure that the FA does not contain material irregularities. A final account template (FAT) and guidance notes would add value to all South African construction industry professionals and should be used as a guide throughout the FA process to ensure improved FAs. In the future, the proposed FAT and guidance notes might assist quantity surveyors in developing, compiling and finalising FAs for construction projects.
A cost model to improve short-term underinsurance of residential buildings in South Africa
(University of Pretoria, 2024-03-28) Cruywagen, J.H.H.; inge.pieterse@up.ac.za; Pieterse, Elma Inge
This thesis demonstrates the development of a case-based reasoning (CBR) enabled cost estimating method for residential buildings in South Africa for application in the insurance environment to address the continuous under-insurance gap perpetuated by inappropriate cost models. The CBR comprises the four steps of retrieving, re-using, revising and retaining cases from the custom-designed dataset. The dataset contains data for forty-five cases based on traditional building elemental estimates and fourteen design features. The elemental estimates are based on the built environment’s entrenched measuring methodology, and the features are designed to address shortcomings in the currently applied cost models for determining replacement cost estimates for insurance purposes. Estimates based on these measuring methods are still regarded as the most accurate predictions of actual cost. The measuring process is laborious, time-consuming, requires specialist-built environment involvement, and is costly. The cost outweighs the perceived risk of insuring for the correct sum. The proposed CBR method addresses all these aspects. The k-nearest neighbour (kNN) machine learning algorithm performs the first step to retrieve the cases from the dataset with features most similar to the case under investigation. The other steps of re-using, revising and retaining are performed through mathematical model-based reasoning. The mathematical estimating model requires the input of fourteen design features extracted from the case under investigation’s drawing that are pro-rated to the features of the retrieved nearest neighbours and multiplied by the elemental values to produce replacement cost estimates for the case under investigation. One hundred and thirty-five estimation iterations based on the chosen nearest neighbours were performed. The model shows the promise to provide accurate replacement cost estimates for insurance purposes, as the results obtained show 59% of the iterations to be within 10% accuracy of the elemental estimates. Machine learning techniques are not widely practised in cost modelling in South Africa’s built environment. The potential for developing and implementing cost models for various purposes, more than just insurance purposes, is immeasurable and could place the built environment truly on the Fourth Industrial Revolution trajectory.
Early career development of candidate quantity surveyors : a focus on soft skills development
(University of Pretoria, 2024-07-18) Cruywagen, J.H.H.; Chinyio, Ezekiel; elzane.vaneck@up.ac.za; Van Eck, Elzane
Academic and professional knowledge, together with sound technical skills will always remain the foundation of quantity surveying, but this alone is not sufficient to cultivate the required professional skillset to help early career candidate quantity surveyors succeed in this profession. Soft skills development in the construction industry has not yet received the attention it deserves. Stakeholders such as the SACQSP, ASAQS, higher education institutions and quantity surveying employers, play a key role in terms of supporting the soft skills development of candidate quantity surveyors. This study aimed at determining how stakeholders can better support the development of soft skills among early career candidate quantity surveyors in South Africa. It utilised a soft skills gap analysis to determine possible gaps among this cohort. A quantitative research approach was adopted making use of a structured questionnaire as data collection tool. The questionnaire was administered to quantity surveyors registered with the South African Council for the Quantity Surveying Profession (SACQSP) as well as members of the Association of South African Quantity Surveyors (ASAQS). Responses received were analysed by using descriptive- and inferential statistics and an exploratory factor analysis. Findings from the empirical part of the study revealed that 95 per cent of respondents agree that it is important to cultivate soft skills and 75 per cent agree that a soft skills shortage exists. Four soft skills clusters that early career candidate quantity surveyors need to develop to succeed in their profession were identified. These clusters are “self-management”, “analytical”, “interaction” and “professionalism and ethics”. This study further identified several soft skills gaps at both pre-professional- and professional development levels. This includes among other a gap in perception and gaps related to teaching-, training- and assessing soft skills. This study contributed to the field of inquiry by proposing a soft skills development framework for the quantity surveying profession in South Africa. This study will be of significance to key stakeholders in the quantity surveying profession such as the SACQSP, ASAQS, higher education institutions and quantity surveying employers. Suggestions for further research include a longitudinal study to investigate the impact of implementing the proposed framework in practice.
Influence of carbon tax on office buildings in South Africa
(University of Pretoria, 2024-07-07) Cruywagen, J.H.H.; u14018642@tuks.co.za; Rogers, Paparouzkja
Greenhouse gasses (GHGs) contribute to global warming and climate change. Countries are combatting climate change and its negative impacts by significantly reducing their GHGs and are moving toward zero-carbon environments. Countries must adopt greener building technologies, design and construct net zero-carbon buildings and implement carbon taxes to combat the effects of climate change. The most efficient way to eliminate or reduce GHG emissions is to implement a carbon tax. The Carbon Tax Act (Act No. 15/2019) of South Africa (SA) was only introduced in 2019 and with this recent introduction, there is limited information available regarding its impact on office buildings in the country. The influence of the carbon tax on developers who own both new and existing office buildings in SA is currently unknown. The mixed-method approach with prescriptive analysis was used as a research method and data was obtained from structured interviews and a comprehensive literature review to design a SA carbon efficient office building model promoting carbon emission savings. Data was collected where the interview responses and previous Project studies of EDGE were entered into recruitment logs to successfully track the data and the use of the EDGE application. All commercial property developers were approached to be part of the study as they play an integral role in the development of existing and new commercial buildings in SA. With only a few available guidelines or no proper model specific to SA’s climate conditions that could be followed by developers to develop or refurbish commercial buildings to be carbon neutral or net zero. However, there was not a proper model specific to SA’s climate conditions that could be used by developers to assist them in developing more sustainable buildings. The study findings indicate that the office building model designed for SA optimises energy efficiency, contribute to long-term cost savings for developers and reduces the impact of the carbon tax payable on office buildings that they can use. Recommendations include for the further exploration of study are to assess SA’s ability to meet the 2030 and 2050 net zero targets, the cost to become net-zero compliant and identify potential gaps in administering carbon tax and carbon credits.
Green star SA certified buildings : actual vs expected energy performance
(University of Pretoria, 2018) Hoffman, Danie; Raytcheva-Schaap, Yovka
Certification of buildings under the various environmental performance schemes such as LEED, BREEAM, Green Star, etc., has increased globally in response to the environmental challenges facing current and future generations. The rating schemes place particular emphasis on building energy efficiency, aiming at reducing the effects of Global Warming, including climate change, habitat destruction, rising sea levels and reduced global food security. Energy related categories make up roughly 25% to 30% of the typical Green Start rating schemes (Doan et al., 2017). The reduced environmental impact of energy consumption in buildings is assessed as part of the certification process through mathematical modelling of energy performance. No actual performance data is used in this process. The certification of buildings, and in particular their modelled energy performance results, creates expectations of actual performance. Building owners expect improved efficiencies over the norm to justify the increased capital outlay and increased lease rentals of this type of building. Tenants on the other side, expect improved efficiencies that translate into real operational savings, thereby justifying the increased rentals. The aim of this research is to verify if Green Star certified buildings exhibit energy performance in line with expectations created during the certification process. This was done through: a) A comparison of the actual energy performance of twelve office buildings in Johannesburg with their expected (modelled) energy performance derived during the certification; and b) Structured interviews with the facilities managers / representatives of these twelve buildings. The results of the structured interviews empirically confirm a positive correlation between key Green Star energy related requirements and operational practices on the one hand, and energy performance on the other hand. These include comprehensive commissioning, building tuning, effective metering strategies, etc. At the same time, the energy performance analysis suggests that buildings included in this sample generally underperform when compared to their modelled normalised energy performance, i.e. certification alone does not guarantee energy efficient buildings. The findings of this research are intended to assist various property sector stakeholders to improve the energy performance of buildings they develop, design, certify, operate, occupy or invest in.
Strategies to counteract digital disruption across the hierarchy of South African shopping centres
(University of Pretoria, 2022) Paradza, Partson; Zulch, Benita; u16204248@tuks.co.za; Masebe, Norman L.
The retail property industry in South Africa represents a trillion Rand in investment, employment, and urban development, all of which would be negatively impacted should it collapse. It, therefore, follows that knowledge about its adaptation to the 4IR and the threats and opportunities that the 4IR represents are vital to the industry's long-term success and South Africa's economy. A literature review has indicated five themes within which digital disruption is experienced in retail property. Within these themes, various challenges, impacts, and coping strategies interact. Just how these themes are experienced across the hierarchy of planned South African shopping centres is currently unknown. This study aimed to investigate how the counteractive strategies to the negative impacts of digital disruption are employed within and across the hierarchy of South African shopping centres. The research approach of this study consisted of an in-depth literature review substantiated by both qualitative and quantitative research, i.e., mixed methods research. The type of mixed methods research conducted was the exploratory sequential method, wherein qualitative research in the form of expert interviews was conducted to substantiate or validate the literature findings. The qualitative findings were then quantitatively tested by using a survey questionnaire developed from the said findings. The survey was administered online, and the results were interpreted by using the lens of qualitatively established facts and theories. The research question sought to establish how digital disruption in retail property presents itself by establishing what the challenges, the impacts and the contradictory strategies of digital disruption are; and whether they are experienced uniformly or variably across the hierarchy of South African shopping centres. It was found that there are five main themes within which the challenges, impacts and coping strategies of digital disruption interact within the retail property industry. These themes and their corresponding challenges, impacts and strategies present themselves variably across the hierarchy of South African shopping centres. The level of perceived disruption is observable by considering the degree to which survey respondents chose the responses related to either fundamental property-management issues or digital disruption (e-commerce and omnichannel retail) as being of greater importance/impact on their particular shopping centres. The degree of disruption appears to be related to the size and function of the shopping centres, with small format centres experiencing less digital disruption than larger format centres. The COVID-19 pandemic has accelerated digital disruption. This acceleration in digital disruption is likely to have a short-term negative impact on South African shopping centres due to the income inequality that exists in the country. This income inequality leads to a digital divide based on the cost hurdle regarding internet access, which has a limiting impact on the growth of online shopping. The digital divide, coupled with an enduring mall culture and the desire to touch and feel goods exhibited by South African shoppers, means that COVID-19 that has accelerated digital disruption in retail is likely to be short-lived, and a return to slower-paced growth in digital disruption is likely to be post-pandemic. The study was limited to South African planned shopping centres listed in the South African Shopping Centre Directory of 2019. The qualitative phase research informants were limited to South African retail property experts (Asset Managers and Portfolio Executives) from a leading South African REIT, while the quantitative phase research informants were limited to the property managers of the said planned shopping centres. The findings of this study are of value to the retail property industry stakeholders in that they provide a body of knowledge for the present survival of shopping centres in South Africa, the futureproofing of existing centres and the fit-for-purpose development of future centres. This is important in ensuring the continued success of the trillion-Rand retail industry and its entire value chain, whose end products and services are delivered from shopping centres. Furthermore, the study provides a new theoretical framework for understanding digital disruption in retail property. And it establishes the need for digital transformation within retail property management. It also establishes how to counteract digital disruption in South African shopping centres in general, and specifically for each class of the shopping centres.
The effect of poor reconciliation between surveyor-general data(spatial) and deeds register information on municipal budgets
(University of Pretoria, 2023) Paradza, Partson; Zulch, Benita; pieter@realmatrix.co.za; Venter, Pieter-Hendrik
The Chief Surveyor-General study in 2011, identified a discrepancy between the Chief Surveyor-General and the Chief Registrar of Deeds. Considering these two governmental institutions as custodians of property registers within South Africa, the red flags raised by this study prompted the notion to determine the extent of the effect on the municipal budget. The study extends the understanding of developing property registers while indicating the influence of an incorrectly developed property register on the valuation roll, and the intern influence on the municipal budget. The goal is to determine the importance of a multidisciplinary approach in compiling a property register as the base information to develop a valuation roll. The focus was to draw a correlation between the Chief Surveyor-General Act and the Chief Registrar of Deeds Act, to emphasise the main similarities that can be used as a multidisciplinary approach. An in-depth study was conducted on the actual Acts governing the local government and how these Acts can assist local government to reach an objective of more accurate budget development. Property registers and valuation rolls were the focus. The analysis was conducted on 23 municipalities with an approximate property count of 1.8 million. The total value was calculated to be R2 trillion value over the sample. A combined methodological approach determined the statistical differences between the data sets and interviews. The aim was to obtain plausible solutions and application/practical flaw identification. For the statistical analysis, the deeds data, surveyor data, and valuation roll data were cross-linked to determine the differences among the three data sets. This presented the monetary influence of properties that cannot be rated in the currently implemented valuation rolls. The qualitative information determined the professionals’ (13 respondents) actions, how the Acts are interpreted, and identified practical solutions. The statistical analysis recognised ample discrepancies between the deeds data and the surveyor data. The main concern was that the differences between the valuation roll— two data sets specified an enormous loss of income in the 23 municipal areas. The interviews deduced a 45/55 split among the professionals on how the statutes are interpreted and the observation of the multidisciplinary approach among the professionals. Training is required, and the change is imminent. The study contributes to knowledge: • Drawbacks and solutions when a multidisciplinary approach is applied were identified. • A correlation between the Chief Surveyor-General (Chief Surveyor-General) Act and the Chief Registrar of Deeds Act was drawn. • It was identified that municipalities have budgetary concerns owing to flawed valuation rolls because of poor reconciling in the property register development phase. • A framework was developed to limit the mistakes in the property register while improving the valuation roll and the valuation data.
Hotels as an Alternative Property Investment Asset Class and its Funding Challenges in South Africa
(University of Pretoria, 2021-07-01) Cook, Laetitia; fabio.nava@yahoo.com; Nava, Fabio Walter
Institutional investors and corporates are constantly looking to achieve double digit yields in relation to investments in traditional real estate assets. With retail, office and residential property under pressure the study set out to determine how hotels perform compared to traditional property investment asset classes in terms of investment yields during different stages of the property cycle, and whether investors (property developers and institutional investment funds) are considering the hospitality sector for investment or diversification of current portfolios. Furthermore, to determine how aligned the commercial banks, Development Funding Institutions (DFI) and Section 12J funds are with funding single hotel assets versus portfolio lending, and what their requirements are. As an exploratory study, interviews were conducted to obtain in- depth and rich information from purposively selected respondents with experience in the sector after completing a preparatory questionnaire. Respondents included property developers, investors, financiers, tour operators and hotel operators. Results confirmed that both developers and investment funds are indeed considering hotels as an alternative investment since the yields are favourable when compared to other asset classes, yet with a longer investment horizon. Hotels required time to stabilise and at this point an expected yield should be higher than 12.5% which is higher than initial yields for traditional commercial properties. Historically, hotels investors were very specific in their investment asset classes and usually purely focused on hospitality assets (specialist investors). This has now changed with an increase in generalist investors coming to the market with exposure in a diversity of asset classes including the hospitality sector. Funding challenges, due to the operational risk associated with Hotel Management Agreements (HMA) is perceived by both financiers and developers or investors. Leases are the preferred income model but are seldom available in the hospitality sector and often those that are made available, may not provide the strong covenants required by financiers and developers/investors. Alternative funding is available in the form of Section 12J VCC’s or from DFI’s but both have their limitations as became apparent in the results. Recommendations for further research include funding challenges for a development or acquisition strategy at a single asset and portfolio level, and expansion to Sub-Saharan Africa as it impacts many investors and international hotels brands with exposure in these regions.
An Investigation of the Early Involvement of Facilities-Management Specialists into the Traditional Design-Development Process: the Causes of Conflicts
(University of Pretoria, 2020) Cruywagen, J.H.H.; u28172206@tuks.co.za; Sekhu, Madimetja Solomon
The traditional procurement and contracting method within the architectural, engineering and construction industry is often criticised for its fragmented approach and its isolation of designers from contractor and Facilities Management(FM). However, adversarial relationships often occur among the project-team members due to disagreements relating to poor communication, processes, specifications, compliance, cost overruns and the extension of times. Therefore, the integration of FM’s specialists into early design development process comes with challenges, such as conflict between the design team and FM’s specialists over the specifications, local statutory compliance, commissioning method statements and the hand-over process. Furthermore, conflicts have critical effects on cost and schedule in complex projects and creates breakdown of relationships among project participants and results in project delays, claims and disputes. The Purpose: The main purpose of this study was to “to explore effective involvement of FM specialists in the early design-development process of complex building projects in South Africa is perceived to be causing conflicts between the multi-disciplinary professional design team members.” Design/methodology: Mixed methods was adopted for this study including extensive related literature review and pilot study. Purposive (8 interviews) and snowballing (102 participants) sampling techniques were used in data collection. Findings: According to descriptive analysis, participants slightly greed that FM specialists should be involved in the early stage of the design development process with mean score ranging from 3.21 (Inception stage) and 3.71 (Concept and Viability stage). Participants agreed that that FM specialists should be involved during design development stage with a mean score of 4.19 and project close out stage with a mean score of 4.29. Furthermore, from 41 causes of conflicts, 10 received mean scores ranging from 2.66 and 2.97 meaning that there is a low possibilities of causing conflicts while 31 variables received mean scores ranging from 3.00 to 3.97 meaning that there is a moderate possibilities of causing conflicts among FM specialists and design team during design development process. Research limitation/Implications: Potential participants are architects, engineers, project managers, property-development managers and facilities managers. Furthermore, the focus of the study is on medium and large complex projects with buildings systems. In addition, this Originality/Value: The high costs of maintenance during operation and non-compliance with the local statutory requirements of the building systems will affect the results and the application thereof. The integration of the design team and FM’s specialists will provide the client with the final product that is functional and safe to occupy and use for its intent. Furthermore, FM’s specialists’ involvement early in the design-development process would reduce operational and maintenance costs during the operational stage of the building; and they would further ensure that the facility complies with the local statutory requirements.
Property valuation for expropriation and compensation in Zimbabwe
(University of Pretoria, 2021) Yacim, Joseph; Zulch, Benita; u13099770@tuks.co.za; Paradza, Partson
This thesis is primarily concerned with laws guiding valuation for expropriation and compensation in Zimbabwe. The thesis aimed to identify and close gaps in the regulatory and legislative frameworks guiding property valuation approaches when land is expropriated in line with the current international best practice. A case study approach was used based on expropriated properties whose compensation amount was approved by the Compensation Committee (CC) during the multi-currency period (2009 – 2019). Stratified random sampling was adopted, and a sample size of 146 respondents was used. The researcher collected data using a semi-structured questionnaire and literature survey. Respondents were chosen from Members of the Compensation Committee (MsCC), Designated Valuation Officers (DVOs), Private Valuers (PVs), and Former Commercial Farmers (FCFs). Documents that were reviewed include statutes, official reports, and newsletters. Questionnaires were sent to research subjects by electronic mail due to the COVID-19 pandemic induced lockdown. Two computer software packages, including Statistical Package for the Social Sciences (SPSS-26) and ATLAS.ti 8, were used for data analysis. The researcher identified gaps in the existing laws and practice of expropriation and compensation in Zimbabwe. Notable gaps include provisions which are not clear, lack of detailed guidelines, unavailability of legal provisions on property valuation for expropriated communal properties and valuation inconsistencies. Furthermore, it was noted that FCFs were dissatisfied with the expropriation and compensation process and MsCC emphasised the need to take a historical overview of the expropriation and compensation crisis in Zimbabwe. Therefore, this study contributed to knowledge and practice by proposing amendments to existing Zimbabwean statutes guiding expropriation and compensation and designed a framework for expropriation and compensation. Results of this study are expected to bring closure to lingering issues surrounding expropriation and compensation in Zimbabwe.
Study of the implementation of the Code of Conduct and Ethical Standards in the South African Quantity Surveying Industry
(University of Pretoria, 2020-02-14) Cruywagen, J.H.H.; u14018642@tuks.co.za; Botha, Paparouzkja
Over the past few years there is an increase in globalization and construction industry companies are becoming more aware of the environmental and social aspects in construction projects. Companies have to make a profit and carry out an obligation towards the community. The reason for introducing codes of conduct is to ensure that companies and persons within the construction industry become more socially responsible and adopt it into their daily businesses due to community pressures. It is essential to enforce codes of conduct throughout the construction industry professions, including all stakeholders and team members within the construction industry. This study has sought to determine the main reasons why some quantity surveyors might not always apply the code of conduct in an ethical and professional manner, as well as to identify possible ways how the code of conduct can be improved, be upheld and implemented more successfully in South Africa. Questionnaires were used to collect data from some quantity surveyors in South Africa. The aim of the questionnaire was to identify how some quantity surveyors implement the code of conduct, where the possible gaps in the code of conduct are and how the current code of conduct can be improved. The data determined that the code of conduct needs to be regularly improved in order to stay up to date with current ethical situations that quantity surveyors face daily in South Africa, as well as that some quantity surveyors have a lack of education and proper understanding of the codes of conduct, lack of keeping up to date with the Code and the guidance in which they serve.
The future of student accommodation : the development potential of accommodation in the Hatfield Student Village
(University of Pretoria, 2019-10-17) Cruywagen, J.H.H.; anrix.coetzee@gmail.com; Coetzee, Anrike
Over the past decade, the demand for student housing in the Hatfield Student Village, situated between the Hatfield and Hillcrest campuses of the University of Pretoria, has grown to a point, where the demand greatly overshadows the supply. Local developers, who recognised the need for housing among students, have made great progress in filling this gap. It has come to a point, where the University of Pretoria has the second largest supply of student housing in South Africa, after the University of Cape Town. This study has sought to determine whether there is still development potential for student housing in the Hatfield area, and also to develop a 10-year masterplan for the future development of accommodation in the Hatfield and Hillcrest areas. Prominent development companies in the student-housing industry were contacted; and interviews were conducted with 8 high-ranking individuals in 8 different companies. The interviews determined the developers’ appetites for the further development of student accommodation in an area, which is already highly competitive. Interviews were also conducted with various role-players in Hatfield, such as the CEO of Hatfield CID, as well as prominent Estate Agents working in the area. Further data were collected on the various occupancy levels in the existing student accommodation, in order to determine the need for future development. The results showed that developers have developed the area to supply about 11 315 beds to the market. With 4 178 beds in line to enter the market within the next 5 to 10 years, the supply will be much larger than the demand. Opportunity must be given to the economy to recover; and thereafter, further development of student accommodation must concentrate on providing units for low-income students. A 10-year masterplan, divided into short-, medium- and long-term time periods, provides a potential road-map to follow, for the future of student accommodation in the Hatfield Student Village. The plan elaborates on future development and the type of development, which would ensure a successful student community for the University of Pretoria.
Towards the development of a predictive rent model in Nigeria and South Africa
(University of Pretoria, 2019) Wall, Kevin; Yacim, Joseph; u17046701@tuks.co.za; Oladeji, Jonathan Damilola
This research aimed to identify reliable economic data for predictive rent modelling in South Africa and Nigeria, as a contribution towards the growing debate on real estate rental forecasting from the African perspective. The data were obtained from the Iress Expert Database, Stat SA, the Central Bank of Nigeria database (CBN), the National Bureau of Statistics and World Bank. The South African economic data comprised time series for a fifteen-year period between Quarter 1 (Q1), 2003 and Quarter 4 (Q4), 2018. The Nigerian data comprised time series for a ten-year period between Quarter 1 (Q1), 2008 and Quarter 4 (Q4), 2018. The logit model was proposed among others as a macroeconomic modelling approach that captures the future rental directions based on the general economic movements and likely turning points. The model is particularly useful due to its reliance on macroeconomic and indirect/listed real estate data which are more readily available to real estate investment decision-makers. This study identified that coincident indicators and the exchange rate both have positive significant relationships with Johannesburg Stock Exchange (JSE) listed real estate as compelling indicators for the South African market. For the Nigerian listed real estate market indicator, the model also responded to interest rate, the consumer price index and the Treasury Bill Rate (TBR) as reliable indicators. In addition to this, analysis revealed the logit regression framework as an improvement to naïve or ordinary linear rent models in these emerging African real estate markets. The use of macroeconomic modelling proved to be a viable alternative to scarce comparable transaction data which serve as the bedrock of traditional real estate investment appraisal. Thus, a forecasting model for early detection of turning points in commercial real estate rental values in South Africa and Nigeria was developed for use in real estate investment decisions. The study concluded that not all economic indicators lead the listed real estate market. The relationship between the macroeconomy and listed real estate is largely significant, but this could be a positive or negative relationship.
An improved methodology for the analysis of retail trade areas
(University of Pretoria, 2018) Cloete, C.E. (Christiaan Ernst); hein@demacon.co.za; Du Toit, Hein
Market analysis is a key component of a sound real estate investment analysis process. Traditional market analysis techniques do not reflect complex trade area attributes and socio-economic realities, such as retail market structure, degree of diversity within the retail market structure, supply-demand saturation levels, the spatial distribution of demand and the composite effect of trade area growth variables on future asset performance. The validity of central place theory, among other things, is analysed. It was revealed that the theory of central places is not supported by its base research and fundamental errors exist in the mathematical relationships that were developed to support this theory. These errors are perpetuated in various urban and regional planning theories, market analysis techniques, models and retail/business hierarchy documents and policies � including but not limited to the research of Berry on urban centres. Notwithstanding these errors, Christallerian principles of central place theory are still widely accepted as correct and remain influential in theory and practice. As basis for the analysis of central place theory, the Fischer-DiPasquale-Wheaton (FDW) model is used. This model conceptualises the relationship between variables that represent the micro-foundations of economic behaviour in property and asset markets. Primary research on stated and revealed preferences by consumers and shopping centre owners revealed further shortcomings of central place theory. Incorrect assumptions associated with the nearest centre postulate and the so-called �six-for-six� principle are interrogated, together with the diseconomies of centralisation/concentration (i.e. increasing costs with greater concentration) which appear not to have been considered by Christaller. A number of qualitative and quantitative research techniques are deployed, including interviews with shopping centre owners and developers, proportionally stratified consumer surveys, statistical analysis of shopping centre performance data and analyses of the frequency distribution of shopping centres. Based on the findings, an improved methodology for the analysis of retail trade areas is presented. The improved methodology incorporates four techniques, namely the Multi-Criteria Saturation Index (MCSI), Retail Diversification Index (RDI), Demand Density Analysis (DDA) and Growth Matrix (GM). A test for validity was developed, based on a comparison of actual versus forecast shopping centre sales data. The negligible difference observed between actual and forecast sales for the centres analysed validates the proposed improved methodology for the analysis of retail trade areas.
The road to purpose-fit selection of the construction manager
(University of Pretoria, 2018) Burger, Michelle; Zulch, Benita; hennievh78@gmail.com; van Heerden, Hennie Hendrik Gustavus
A shortage in experienced skilled construction managers is foreseen in the near future. A big contributing factor is the entering of non-purpose-fit candidates into construction management programmes. Valuable time and resources are wasted on students enrolled in construction management programmes, entering construction management positions and ultimately leaving these positions due to a common misconception of the actual work conditions of a construction manager. The philosophical framework constituted an underlying pragmatic philosophical underpinning. The researcher opted for mixed methods and action research approached within this study. The research study was restricted to cross-sectional time-horizons as the thesis had to be completed within a specific time frame. The aim of this research study is to suggest a purpose-fit selection of the construction manager in South Africa. This will link with the soft skills in the competency domain that is currently needed in the industry and in the profession itself. It is suggested that construction management students should do practical work for a year before they start their studies. This will give them a better understanding of the work conditions, pressure and work-life balance associated with the construction industry, as this is not tested in the online SAPI personality test. Tertiary education in construction management and proper practical experience are crucial; but without the necessary soft skills and purpose-fit personality profile, the construction manager would not be successful on a project.
Key performance indicators to predict the future performance of office nodes
(University of Pretoria, 2018) Boshoff, Douw G.B.; u12028429@tuks.co.za; Pienaar, Mareli Magdalena
The property sector is globally regarded as one of the best asset classes to invest in. There is substantial data available in respect of the historical performance of the property sectors and geographical locations. The challenge today however, is to be able to predict which office nodes will, in this fast changing environment, be the best performing nodes in the future. This research project endeavours to answer this burning research question. Interviews were conducted with 18 commercial property experts specialising in the different nodes of the main metropolitan regions of South Africa, namely Pretoria, Johannesburg, Cape Town and Durban. Through the interviews, it became evident which key performance indicators (KPIs) are regarded by the property specialist as the most important KPIs to consider when investigating office nodes’ performance. In the model formulated, total return was used as the measure of the performance of the different nodes. The most relevant KPIs mentioned by the specialists were used in a multiple regression model as the independent variables and total return as the dependent variable. Twenty years of data from MSCI was examined in the multiple regression model. The regression models were used to further determine which of the KPIs contributed the most towards explaining total return as the measurement of performance. The purpose of the different regression models were to determine a model with the highest adjusted R-square, F-value, as well as the highest significance of all the KPIs used in the model, to enable the researcher to use the Beta values to determine the total return of the different nodes in the future. The model formulated enables the investor to identify the best performing office nodes in the future.
Transformation from property loan stocks to real estate investment trusts and the resulting influence on international diversification
(University of Pretoria, 2017) Boshoff, Douw G.B.; u12013464@tuks.co.za; Kruger, Marko
South Africa has made a recent transformation from Property Loan Stock companies and Property Unit Trusts to the internationally recognised Real Estate Investment Trust structures. The locally listed companies that decided to adopt this structure should experience increased global interaction. This study focused primarily on the international direct or indirect real estate investments made from a South African Real Estate Investment Trust perspective. When conducting this investment, the respective companies must obtain financing for the investments, which will have an impact on capital and shareholder structure. The capital structure acts as an umbrella term that includes the shareholder’s equity and debt of a company. The study mainly focused on long-term debt. The shareholder structure focuses on the equity of South African Real Estate Investment Trusts in depth and determines if international activity had taken place. Global investments usually have a structure through which money is transferred to foreign countries to execute an investment. This is predominantly referred to as the company structure. The top 13 Real Estate Investment Trusts, by market capitalisation, were examined to first determine whether international investment took place and secondly whether their company structure experienced change after foreign property investments had been made. Emphasis was placed on the risks involved during the international investment process, the reason for company structure changes, as well as the benefits associated with these decisions. The various direct and indirect impacts that the previous themes have on the bottom line of a specific South African Real Estate Investment Trust were also explored, should these investors choose to capitalise on a global scale.

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