Reply:

1. The average cost of constructing a fully subsidised house differs in each Province. The details of the average of constructing a house as provided by Provinces are as follows:

 

 

	Construction costs of RDP House
Province	Average Cost  Urban Rural Disable
1. Eastern Cape	N/A R 170 000.00	R 190 000.00	N/A
2. Free State	N/A R 136 164.00	N/A	N/A
3. Gauteng	R116 000.00	N/A	N/A	N/A
4. KwaZulu Natal	R 172 853.00	N/A	N/A	R 228 914.00
5. Limpopo	R 92 600.00	N/A	N/A	N/A
6. Mpumalanga	R 125 000.00	N/A	N/A	WA
7. Northern Cape	R 123 829.00	N/A	N/A	N/A
8. North West	R 113 539.38	N/A	N/A	N/A
e. Western Cape	R 164 856.00 (Simplex) R 183 856.00 (Duplex)	N/A	N/A	N/A

2. It must be noted that the construction cost is separate from the cost of land as well as provision of water and sanitation. These costs per uniVhouse can be broken down as follows:

• Raw Land- R6 000
• Water and Sanitation- R7 673

3. The National Department provides the Provinces with a sector adopted subsidy quantum guideline which allocates R168 852 per house as follows:

• Top Structure- R116 867
• Service cost- R 45 985
• Raw Land- R 6 000

The main reasons for the variances includes amongst others the following:

• The housing programme(s) implemented by a Province

        In most cases implementation of Rural Housing Programme cost less than that of Social Housing Programme such as Community Residential Programme.

• Bulk Provision

 In urban areas, bulk has to be provided before top structure can be constructed and the costs of that bulk are included in the total cost of the construction.

• Environmental impact

The environmental conditions of coastal areas differs significantly to those of inland Provinces and this pushes the costs of constructing houses for mainly coastal areas with prolonged rainy seasons.

• Acquisition of building material

In certain Provinces, building material has to be acquired in Metropolitan areas such as Gauteng and the cost of transport has a cost bearing in the acquisition of building material.

• Labour costs

For rural areas, the cost of labour is less as compared to urban areas and construction costs end up belng lesser as a result.

 

See attached link for Annexure A and B: http://pmg-assets.s3-website-eu-west-1.amazonaws.com/RNW1367-Annexures.pdf

 

 

NATIONAL ASSEMBLY QUESTION FOR WRITTEN REPLY QUESTION NUMBER: PQ 1367

DATE OF PUBLICATION: 11 MAY 2018

F MATLATSI

CHIEF FINANCIAL OFFICER

DATE:

Recommended/

N CHAINEE

DDG: STRATEGY AND PLANNING DATE: + z g "

Approved/Not approved

MINISTER FOR HUMAN SETTLEMENTS

DAYE: