Real Estate Business Owners South Africa

Real Estate Business Owners South Africa
REBOSA AGM 29 June 2015

CONTENT Understanding transformation BBBEE Act & Sector Codes
Application of current transformation and BBBEE Revised Codes of Good practice Changes to the Codes and implication to PSC Amendment Bill and Verification process Residential Industry Scorecard

UNDERSTANDING TRANSFORMATION
Transformation is a mechanism by government using Broad based Economic empowerment to enable the participation of the previously marginalised in the main stream economy!

WHY IS TRANSFORMATION NECESSARY?
SA was forced to take steps to deal with its past in order to attempt to redress the inequalities in all spheres of life cause by the previous system of apartheid One of these steps was the development of a strategy which would achieve economic transformation- to address inequalities Transformation is a pragmatic growth strategy that aims to realise the country’s full economic potential by ensuring all citizen can participate in the mainstream of the economy – in a sustainable manner. All citizen means Its people and their enterprises

SA DEMOGRAPHIC STATISTICS

SA POPULATION: GENDER SPLITS (2012)

EXPECTED RESULTS OF TRANSFORMATION
BBBEE strategy emphasis: Growth Development Well implemented BBBEE sustainability Profitability Global competitiveness Innovativeness

LEGAL AND COMMERCIAL STATUS
B-BBEE and Sector Codes do not impose legal binding obligation of any company to comply; BUT B-BBEE is an important fact to be taken into account by any company conducting business in SA. B-BBEE is an important consideration to successfully tender for Government and State Owned Entities contracts or in some instances to obtaining government licence and in Private Public Partnership (PPP).

WHO IS THE CUSTODIAN OF TRANSFORMATION
The DTI (Department Trade and Investment) is the custodian of transformation/Broad Based Black Economic Empowerment (B-BBEE) The DTI’s mandate – is to increase Trade and Investment in the country in order to allow the economy to grow The DTI has four Mission statements of how they will achieve their mandate and one of them is : Grow the economy through Inclusive Participation There are a number of tools to drive Inclusive Participation and one of them Broad Based Black Economic Empowerment (B-BBEE) Women Empowerment Programmes People with Disability Programme

Enterprise Development Preferential Procurement
BBBEE AS A TOOL OF TRANSFORMATION SED Skill Development Enterprise Development Preferential Procurement Employment Equity Management Control Ownership

BBBEE AS A TOOL OF TRANSFORMATION
BBBEE use 7 elements to drive transformation Ownership Management Control Employment Equity Skill Development Preferential Procurement Enterprise Development Socio-Economic Development Plus Sector Code additional element

UNDERSTANDING TRANSFORMATION
“Mainstream economy upper class” Majority are white Wealthy with economic choices Business owners EQUITABLE ECONOMIC OPPORTUNITIES Ownership equity Management control “Upper middle class & investors” High income Positive net asset value Invest in shares Majority are white THE OPPORTUNITY BARRIER Preferential procurement Enterprise development “Entrepreneur middle class” Self employed Owner managed businesses Small Medium & Micro Enterprises Majority are white THE BUSINESS BARRIER Skills development “The professional middle class” Formal employment (Black Diamonds) School leavers/graduates Artisans/professionals THE SKILLS BARRIER Employment equity Socio Economic Development “Second economy” The majority are black With no economic earning ability No technical or tertiary skills Dependant on grants (Unemployable) Subsistence on land produce THE POVERTY BARRIER

BBBEE Act & SECTOR CODES

Introduction The Broad-Based Black economic Empowerment Act 53 of 2003 (“BBBEE Act) provides the legislative framework for broad based black economic empowerment in SA. The “Generic” Codes of Good Practice and Sector Codes are issued under the B-BBEE.

BBBEE Sector Code What are Sector Codes Why are sector Codes important
Development of sector transformation strategy that uses the generic principles of BBBEE and accommodating specific nuances of your sector in order to make transformation more effective and meaningful. Why are sector Codes important The 7 elements of generic codes are critical and important but there are also other elements beyond that the country needs to transform Funding transformation – Financial Sector Charter Access to connectivity – ICT Charter Development in under-resourced area- Property Sector Charter

BBBEE Sector Code 2009 2011 2012 2013 Sector Charter – Section 12
Construction Sector Code Tourism Sector Code Forestry Sector Code Transport Sector Code 2011 Chartered Accountants Sector Codes 2012 ICT Sector Codes Property Sector Code AgriBEE Sector Codes 2013 Financial Sector Codes Sector Charter – Section 12 MAC Sector Codes

BBBEE Sector Code BBBEE Sector Codes
Bought into being by the BBBEE Act, No.53 of 2003 They are anchored under the generic codes Establishment of Sector Codes needs to have as common factor Use same principles Use Same methodology Use Same calculations Use Same definitions What Sector Codes are at liberty to change are: Targets of the different elements Weighting of the different elements Adding a different/unique element/s

APPLICATION OF CURRENT TRANSFORMATION AND BBBEE

BBBEE as a toll of transformation
Company threshold Large Entities Qualifying Small Enterprise (QSE) – medium size entity Exempted Micro Enterprises (EME) – Small entity OLD REVISED COGP LARGE ENTITIES R35M < QSE R5M-R35M EME <R5M Exempted

BBBEE as a tool of Transformation
BBBEE use 7 elements to drive transformation Ownership Management Control Employment Equity Skill Development Preferential Procurement Enterprise Development Socio-Economic Development

Application Of BBBEE TO Large Entities
ELEMENT DEFINITION QSE WEIGHTING BONUS POINTS OWNERSHIP Measures effective ownership by black people 20 3 MANAGEMENT CONTROL Measures effective control by black people 10 1 EMPLOYMENT EQUITY Measures initiatives intended to achieve equity in the workplace under the Act and the Employment Equity Act 15 SKILLS DEVELOPMENT Measures the extent to which employers carry out initiatives to develop the competencies of black employees - PREFERENTIAL PROCUREMENT Measures the extent to which enterprises buy goods and services from BBBEE suppliers ENTERPRISE DEVELOPMENT Measures the extent to which enterprises carry out initiatives intended to assist and accelerate the development and sustainability of other enterprises SOCIO ECONOMIC DEVELOPMENT Measures the extent to which enterprises have implemented initiatives that promote access to the economy for black people 5 SUB-TOTAL 100 7 TOTAL 107

APPLICATION OF BBBEE TO QSES
ELEMENT DEFINITION QSE WEIGHTING BONUS POINTS OWNERSHIP Measures effective ownership by black people 25 3 MANAGEMENT CONTROL Measures effective control by black people 2 EMPLOYMENT EQUITY Measures initiatives intended to achieve equity in the workplace under the Act and the Employment Equity Act SKILLS DEVELOPMENT Measures the extent to which employers carry out initiatives to develop the competencies of black employees - PREFERENTIAL PROCUREMENT Measures the extent to which enterprises buy goods and services from BBBEE suppliers ENTERPRISE DEVELOPMENT Measures the extent to which enterprises carry out initiatives intended to assist and accelerate the development and sustainability of other enterprises SOCIO ECONOMIC DEVELOPMENT Measures the extent to which enterprises have implemented initiatives that promote access to the economy for black people TOTAL 100 7 Total of any 4 of the above 107

CHANGES TO THE CODES Its implication to PSC
Weighting Points – QSE (now you do all Elements) Current PSC Ownership 25 Management Control Employment Equity Skill Development Preferential Procurement Enterprise Development Socio-Economic Dev Economic Development TOTAL 100 Do only 4 out of the 7 elements

REVISED CODES OF GOOD PRACTICE

Reason for Revision of Codes
The Generic scorecard adjusted in accordance with government key priorities Job Creation Supplier Development Localisation Industrialisation Skill Development We had to re-focus our effort based on the achievements and lack thereof

IMPLICATION TO THE PROPERTY SECTOR CODE
CHANGES TO THE CODES IMPLICATION TO THE PROPERTY SECTOR CODE

Sector Codes/ Property Sector Codes
Sector codes are extended until end Of October 2015 Sector Codes/ Property Sector Code will be effective on the 1 November 2015 All companies scoped under Property Sector Code – have additional 6 month transitional period to review and change your BBBEE strategies to take account of the aligned Property Sector Code

Elements to the Codes Current PSC Ownership ✓ Management Control Employment Equity Skill Development Preferential Procurement Enterprise Development Socio-Economic Dev Economic Development TOTAL 8

Elements to the Codes Current PSC Ownership ✓ Management Control Employment Equity Skill Development Preferential Procurement Enterprise Development Socio-Economic Dev Economic Development TOTAL 8 Revised Codes ✓ 5

Elements to the Codes Current PSC Ownership ✓ Management Control Employment Equity Skill Development Preferential Procurement Enterprise Development Socio-Economic Dev Economic Development TOTAL 8 Aligned PSC ✓ 7 Revised Codes ✓ 5

COGP company classification Old Codes New Codes Large entities R35M < R50M< QSE R5M-R35M R10M-R50M EME <R5M Exempted <R10M -Exempted

COGP company classification PSC company classification Old Codes New Codes Large entities R35M < R50M< QSE R5M-R35M R10M-R50M EME <R5M Exempted <R10M -Exempted ALIGNED PSC THRESHOLD ASSET BASED COMPANIES PROPERTY COMMERCIAL SERVICES PROPERTY RESIDENTIAL SERVICES LARGE ENTITIES Above R400M Above 50M Above R35M QSE R80M-R400M R10M-R50M R2.5M – R35M EME Less than R80M BELOW R10M Less than R2.5M

Weighting Points – Large Entities Current PSC Ownership 20 Management Control 10 Employment Equity 15 Skill Development Preferential Procurement Enterprise Development Socio-Economic Dev 2 Economic Development TOTAL 107

Weighting Points – Large Entities Current PSC Ownership 20 Management Control 10 Employment Equity 15 Skill Development Preferential Procurement Enterprise Development Socio-Economic Dev 2 Economic Development TOTAL 107 Revised Codes 25 19 20 40 5 109

Weighting Points – Large Entities Current PSC Ownership 20 Management Control 10 Employment Equity 15 Skill Development Preferential Procurement Enterprise Development Socio-Economic Dev 2 Economic Development TOTAL 107 Aligned PSC 30 9 13 19 39 2 5 117 Revised Codes 25 19 20 40 5 109

Weighting Points – QSE (now you do all Elements) Current PSC Ownership 25 Management Control Employment Equity Skill Development Preferential Procurement Enterprise Development Socio-Economic Dev Economic Development TOTAL 100 Do only 4 out of the 7 elements

Weighting Points – QSE (now you do all Elements) Current PSC Ownership 25 Management Control Employment Equity Skill Development Preferential Procurement Enterprise Development Socio-Economic Dev Economic Development TOTAL 100 Revised Codes 25 15 30 5 100

Weighting Points – QSE (now you do all Elements) Current PSC Ownership 25 Management Control Employment Equity Skill Development Preferential Procurement Enterprise Development Socio-Economic Dev Economic Development TOTAL 100 Aligned PSC 27 9 8 17 35 2 4 105 Revised Codes 25 15 30 5 100

Complex Structure Internal Management PLSA/RIETS Unlisted Public mandated collective Investment Prop Management services Estate Agents Asset Management PLSA Property Loans Stock externally management Prop Owners /RIET (External Management) APUTS Ownership ✓ Management Control Employment Equity X Skill Development Enterprise Supplier Development Socio-Economic Development Economic Development

3 Priority Elements Elements that require focus and concerted effort Ownership 40% of the “Net Value” targets must be realised Skill Development 40% of total weighting points Enterprise and Supplier Development 40% of targets for sub-categories of the ESD namely: Preferential Procurement Supplier Development Enterprise Development Failure to meet the minimum requirement of 40% Discount of one level down from the total final level score

PSC Net Equity target Year 9 100% YEAR PSC Target Schedule
40% threshold Year 1 10% 4% Year 2 20% 8% Year 3 40% 16% Year 4 Year 5 60% 24% Year 6 Year 7 80% 32% Year 8 Year 9 100%

Skill Development (19 points)
CRITERIA Weighting points Compliance target SKILLS DEVELOPMENT EXPENDITURE ON ANY PROGRAM SPECIFIED IN THE LEARNING PROGRAMME MATRIX FOR BLACK PEOPLE AS A PERCENTAGE OF LEVIABLE AMOUNT Skills Development Expenditure on Learning Programmes specified in the Learning Programme Matrix for black people as a percentage of Leviable Amount 8 5% Skills Development Expenditure on Learning Programmes specified in the Learning Programme Matrix for black people with disabilities as a percentage of Leviable Amount 3 0.3% LEARNERSHIPS, APPRENTICESHIPS AND INTERNSHIPS: Number of black people participating in Learnerships, Apprenticeships and Internships as a percentage of total employees 4 2.5% Number of unemployed black people participating in Learnerships, Apprenticeships and Internships as a percentage of total employees 40% thresholds 19 7.6

MEASUREMENT CATEGORY & CRITERIA
WEIGHTING POINTS COMPLIANCE TARGETS PREFERENTIAL PROCUREMENT BBEE Procurement Spend from all Empowering Suppliers based on the B-BBEE Procurement Recognition Levels as a percentage of Total Measured Procurement Spend 2 80% B-BBEE Procurement Spend from all Empowering Suppliers that are Qualifying Small Enterprises based on the applicable B-BBEE Procurement Recognition Levels as a percentage of Total Measured Procurement Spend 15% B-BBEE Procurement Spend from all Empowering Suppliers that are Exempted Micro-Enterprises based on the applicable B-BBEE Procurement Recognition Levels as a percentage of Total Measured Procurement Spend B-BBEE Procurement Spend from all Empowering Suppliers that are at least 51% black owned Micro-Enterprises based on the applicable B-BBEE Procurement Recognition Levels as a percentage of Total Measured Procurement Spend 8 40% B-BBEE Procurement Spend from all Empowering Suppliers that are at least are 30% black women-owned based on the applicable B-BBEE Procurement Recognition Levels as a percentage of Total Measured Procurement Spend 4 12% Percentage of procurement spend with Black owned enterprises (level 1-4) as a percentage of the total property services spend 6 SUPPLIER DEVELOPMENT Annual value of all Supplier Development Contributions made by the Measured Entity as a percentage of the target. 10 2% of NPAT ENTERPRISE DEVELOPMENT Annual value of Enterprise Development Contributions and Sector Specific Programmes made by the Measured Entity as a percentage of the target. 5 1% of NPAT 9.6 4 2

Enterprise and Supplier Development Increased points from 35 to 40 points Supplier development being the new element The requirements for an “Empowering Supplier”- to meet 3 of the 4 conditions Procure from local producers 50% of Jobs created must be for black people Use at least 25% transformation of local raw material/ manufacturing/assembling/ packaging Skills transfer - at least spend 12 days per annum of productivity in assisting QSE & EME At least 85% of labour costs should be paid to South African employees by service industry entities No preferential points will be obtained if a supplier does not comply with the above New

B-BBEE CONTRIBUTOR STATUS CHANGES TO THE CODES Its implication to PSC
Level One Level Two Level Three Level Four Level Five Level Six Level Seven Level Eight Non-Compliant CHANGES TO THE CODES Its implication to PSC Discounting effect: Any entity that fails to meet threshold will be discounted one (1) level down Even if the entity fails to meet 2 of the threshold, it will only be discounted one (1) level down

CHANGES TO THE CODES Other Deviations

ALL OTHER PROPERTY COMPANIES
Ownership – Large Company OWNERSHIP INDICATOR ALL OTHER PROPERTY COMPANIES WEIGHTING POINTS COMPLIANCE TARGETS Voting Rights Exercisable Voting Rights in the Enterprise in the hands of black people 5 25% + 1 vote Exercisable Voting Rights in the Enterprise in the hands of black women 2 10% Economic Interest Economic Interest of black people in the Enterprise 25% Economic Interest of black women in the Enterprise Economic interest of the following black natural people in the measured entity: 4 3% 1. black designated groups; 2. black Participants in Employee Ownership Schemes; 3. black beneficiaries of Broad based Ownership Schemes; or 4. black Participants in Co-operatives New entrants 2% Net Equity Schedule

All Other Property companies
Ownership - QSE MEASUREMENT CATEGORY & CRITERIA WEIGHTING POINTS COMPLIANCE TARGETS All Other Property companies Voting Rights Exercisable voting rights in the enterprise in hands of black people 5 25% + 1 vote Exercisable voting rights in the enterprise in the hands of black women 2 10% Economic interest Economic Interest of black people in the Enterprise 25% Economic Interest of black women in the Enterprise New entrants or Black Designated Groups 3 2% Realisation Points Net Value 10 Y 1 =10%; Y 2 =20%; Y 3 = 40%; Y 5 = 60% Y 7 = 80%; Y 9 = 100% TOTAL 27

Management Control – Large Company
MEASUREMENT CATEGORY CRITERIA WEIGHTING POINTS COMPLIANCE TARGETS BOARD PARTICIPATION: Exercisable voting rights of Blacks members as a percentage of all Board members 2 50% Exercisable voting rights of Black female board members as a percentage of all Board members 1 25% Black Executive Directors as a percentage of all executive directors Black Female Executive Directors as a percentage of all executive directors OTHER EXECUTIVE MANAGEMENT Black Executive Management as a percentage of all executive Management 60% Black female executive Management as a percentage of all executive management 30% TOTAL 9

Management Control - QSE
MANAGEMENT CONTROL INDICATOR WEIGHTING POINTS COMPLIANCE TARGET Board participation Exercisable voting rights of black board members as a percentage of all voting board members 4 50% Exercisable voting rights of black female board members as a percentage of all voting board members 2 25% Other executive management Black executive management as a percentage of all executive managers 60% Black female executive management as a percentage of all executive managers 1 30% TOTAL 9

Employment Equity– Large /QSE Companies
MEASUREMENT CATEGORY & CRITERIA WEIGHTING POINTS COMPLIANCE TARGET Black practitioners as a percentage of total practitioners 4 50% Black female practitioners as a percentage of total practitioners 3 Black people in management as a percentage of total Management 2 35% Black female in Management as a percentage of total Management 1 18% Black people in administration as a percentage total administrators 30% Black females in administration as a percentage of total administrators 40% TOTAL 13

Skill Development Increased from 15 points to 20 points (PSC weighting 19 points) Increased targets from 3% to 6% for COGP (PSC target is 5%) Training can be done to both Internal and External sector participants Enterprise and Supplier Development Increased points from 35 to 40 points Supplier development being the new element The requirements for an “Empowering Supplier”- to meet 3 of the 4 conditions Procure from local producers 50% of Jobs created must be for black people Use at least 25% transformation of local raw material/ manufacturing/assembling/ packaging Skills transfer - at least spend 12 days per annum of productivity in assisting QSE & EME At least 85% of labour costs should be paid to South African employees by service industry entities No preferential points will be obtained if a supplier does not comply with the above New

Socio-Economic Development
MEASUREMENT CATEGORY & CRITERIA WEIGHTING POINTS COMPLIANCE TARGET Average Annual value of all socio-Economic Development Contribution made by measured entity as a percentage of the target 2 1 % of NPAT

CHANGES TO THE CODES Its implication to PSC B-BBEE Contributor Status
Scorecard points & Qualification criteria for awarding of B-BBEE status levels adjusted B-BBEE Contributor Status Current Qualification New Level One ≥100 points Level Two ≥85 but <100 points ≥95 but <100 points Level Three ≥75 but <85 points ≥90 but <95 points Level Four ≥65 but <75 points ≥80 but <90 points Level Five ≥55 but <65 points ≥75 but <80 points Level Six ≥45 but <55 points ≥70 but <75 points Level Seven ≥40 but <45 points ≥55 but <70 points Level Eight ≥30 but <40 points ≥40 but <55 points Non-Compliant <30 points <40 points

Annexure 1 TIMELINES June 2015 July 2014 Aug 2015 Sept 2015 Oct 2015
ACTIVITY W1 W2 W3 W4 Technical Comm workshop Done Submission of Input Consolidation of inputs Technical Comm Meeting Council Meeting approval & sign off on final draft PSC Meeting with DTI 1st draft of aligned PSC Technical comm Meeting review DTI’s comments Meeting with DTI for Final Approval of the aligned PSC Gazette of aligned PSC under section 9 (5) – 60 days Analyse Public Inputs – 30 days Finalise the aligned PSC doc with public input Presentation to DTI for sign off the gazette Gazette the final document under 9 (1) Effective date of Aligned PSC

AMENDMENT BILL & VERIFICATION PROCESS

KEY AMENDMENT TO B-BBEE ACT: COMMISION
Key Amendments to B-BBEE Act Establish a B-BBEE commission (like Ombudsman)- its function Oversee and supervise compliance to the B-BBEE Act Investigate complaints Maintain a register of BBBEE transaction of specific threshold Deal with “Fronting Practices” Defined as act/conduct that directly or indirectly undermines or frustrate the achievement of the B-BBEE objectives or the implementation of any provision of the BBBEE Act; Misrepresentation of information or engaging in Fronting Practices may result in: A fine and/or up to 10 Years imprisonment for individual or both; and A company may be fined up to 10% of its annual turnover; Any person convicted of an offence is banned from contracting with any organ of state for 10 years.

KEY AMENDMENT TO B-BBEE ACT: REPORTING
Enforce reporting obligation For Sector Codes including PSC One of the mandate of PSCC is to Monitor & Evaluate the state of Transformation in the Property Sector PSC 1st Reporting – 2014 Council sampled listed and large entities contribution 75% of the total sector value Residential out of 6 estate agencies – Only 1 submitted a report Response did not meet the expectation In the future - Failure to report maybe enforced by commission directly Importance of reporting on sector and for the codes Understanding where we are and challenges enables intelligent discussion about where we are going

WHO QUALIFY TO DO YOUR BBBEE VERIFICATION
2 Accrediting agencies SANAS – accredited agency Need have extension of Scope for sector Code IRBA – accredited Auditors Attended BBBEE MDP course

Verification Process Verification agencies/ Auditors
Briefed about your requirement Puts a plan List of required documents Sample interviews (Estate agents and/or Employees) Apply methodology

BBBEE CERTIFICATE BBBEE Verification Company Name of Company
Recognition Level Company Details Individual score Certificate Issue Date Certificate Expiry Date Sector compliance Certificate Seal SANAS accredited Agency

BBBEE CERTIFICATE ELEMENTS SCORE Ownership 21.51 Management Control
9.56 Employment Equity 6.69 Skill Development 14.8 Pref. Procurement 16.31 Enterprise Development 11 Socio-Economic Development 10.6 TOTAL 90.47

Total 90.47 B-BBEE Contributor Status Current Qualification Level One ≥100 points Level Two ≥85 but <100 points Level Three ≥75 but <85 points Level Four ≥65 but <75 points Level Five ≥55 but <65 points Level Six ≥45 but <55 points Level Seven ≥40 but <45 points Level Eight ≥30 but <40 points Non-Compliant <30 points

Scorecard points & Qualification criteria for awarding of B-BBEE status levels adjusted B-BBEE Contributor Status Current Qualification New Level One ≥100 points Level Two ≥85 but <100 points ≥95 but <100 points Level Three ≥75 but <85 points ≥90 but <95 points Level Four ≥65 but <75 points ≥80 but <90 points Level Five ≥55 but <65 points ≥75 but <80 points Level Six ≥45 but <55 points ≥70 but <75 points Level Seven ≥40 but <45 points ≥55 but <70 points Level Eight ≥30 but <40 points ≥40 but <55 points Non-Compliant <30 points <40 points

THANK-YOU QUESTIONS??

UNDERSTANDING THE PROPERTY SECTOR

SCOPE OF THE PROPERTY SECTOR
Commercial Property Industry Office Property Industry Industrial Property industry Retail Property Industry Leisure Property Industry Residential Property Industry Houses Freehold Lease Community schemes Flats, Clusters, Town Houses etc Zoned land

The Size of the SA Property Sector
South African property sector R4.9 trillion Non residential R780 billion Residential R3.0 trillion Public R570 billion Zoned urban land R520 billion Retail R340 billion National R188 billion Office R228 billion Provincial R342 billion Industrial R187 billion Local R37 billion Hospitality, leisure, other R25 billion SOE R6 billion

The Size of the SA Property Sector
Review of the size of SA property sector: Result in 2015 est Increased by +20% est Increased by +30% ? SOE has increased Government unknown ? Stable 2014 house Transactions in the residential market is R5.2 Billion

Residential Transactions
2014 R52 Billion transaction 5% average commission R2.6 Million An average transaction is R560K (with average cost of mid-price house at R810k and the low-end house transaction is R310K. The current housing market is driven by affordable housing in terms of sales. According to EAAB 62% of estate agencies have 1-5 Estate Agents 18% of estate agencies have 6-10 Estate Agents

THE IMPACT OF THE SOUTH AFRICAN PROPERTY SECTOR ON THE NATIONAL ECONOMY
RESEARCH REPORT 2013 Report released in May 2014

The Impact of the South African Property Sector on the National Economy
Research Phases PHASE 1 Measured the amount of existing stock in the country “The size of the South African Property Sector” PHASE 2 Measures Economic activity “Impact of the South African Property Sector on the National Economy” PHASE 3 Analyses transformation using the BBBEE tool with the 7+1 Property Sector Code elements “State of transformation in the Property Sector” PHASE 2 Research elements in phase 1&2 were done in conjunction with Investment Property Databank (IPD)

THE IMPACT OF THE SOUTH AFRICAN PROPERTY SECTOR ON THE NATIONAL ECONOMY
R43.9 Billion Direct Expenditure R93.3 Billion SOUTH AFRICAN PROPERTY SECTOR R Billion Non-Residential Property Industry Contribution GDP R191.4 Billion TOTAL R237.8 Billion R80.8 Billion R106.1 Billion Total Taxes R46.5 R25.3 Billion Note: All cost excluding VAT R123.8 Billion R7.9 Billion Residential Property Industry End of Cycle R46.0 Billion R3.3 Billion R103.7 Billion R6.8 Billion R20.1 Billion R1.1 Billion

National Estate Agents Stats 2011, 2012 & 2013

Registered Estate Agents
There has been an increase of estate agents 2011 vs 2012 There are additional 347 estate agents in 2012 vs 2011| There has been a decrease of estate agents 2012 vs 2013 of 60 estate agents

Which province/s drives the industry?
2011 Provincial split Comments Gauteng, WC & KZN contribute 82% of the agents Gauteng has Half the of that split at 43% Free State, Limpopo and N. Cape have the lowest share – total of 6% (3%, 2% and 1% respectively) 24% 43% 15% 6%

Gauteng, WC and KZN have highest share – total of 81% (44%, 23% and 14% respectively) Gauteng with a major share at 44% Free State, Limpopo and N. Cape have the lowest share – total of 6% (3%, 2% and 1% respectively)

2013 Provincial split Comments Gauteng, WC & KZN contribute 82% of the agents Gauteng has Half the of that split at 45% Free State, NW, Limpopo and N. Cape have the lowest share – total of 6% (3%, 3%, 2% and 1% respectively)

Growth by Estate Agents
Gauteng gained additional 554 agents W.Cape gained additional 8 agents KZN lost 57 agents All other reduced by 159 agents

2011 National Racial Split 86% of Estate Agents are white
14% of Estate Agents are Black African and Indians are the majority within the Black category (7% & 6% respectively) KZN has better stats comparatively with whites EA=82% and Blacks=18 WC has the worst stats comparatively with Whites EA=92% and Blacks=8%

2012 National Racial Split 87% of Estate Agents are white
13% of Estate Agents are Black African and Indians are the majority within the Black category (7% & 5% respectively) Limpopo has better stats comparatively with whites EA=73% and Blacks=27% WC has the worst stats comparatively with Whites EA=93% and Blacks=7%

2013 National Racial Split National 86% of Estate Agents are white
13% of Estate Agents are Black African and Indians are the majority within the Black category (7% & 5% respectively) Limpopo has better stats comparatively with whites EA=73% and Blacks=23.4% WC has the worst stats comparatively with Whites EA=93% and Blacks=1%

National Gender split 2011 & 2012

National Gender split 2013

National Gender Split- Principals 2011 vs 2012
National there are more females in this industry at 55% However, there are more males as principals at 56%

2011 Gender splits Principals

2012 Gender splits Principals

National Gender Split Estate Agents, Interns & Attorneys 2011 vs 2012
The gender split for this category is the same for both 2011 & 2012 at 61% whites and 39% Blacks

National Racial Split Estate Agents, Interns & Attorneys 2011 & 2012
The racial split for this category is the same for both 2011 & 2012 at 85% whites and 15% Blacks

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