Corobrik readies to scoop up work in affordable housing market
Corobrik believes further developments in South Africa’s affordable housing market and investments in social infrastructure are the key to positive prospects for 2016, with the clay brick and paving manufacturer and distributor seeking to add to the value of South Africa’s infrastructure stock and consumer investment at the entry housing level where there is minimal disposable income for maintenance.
Corobrik MD, Dirk Meyer, says the country is also experiencing growth in construction of homes between R500,000 and R2m, targeting the emerging middle-class.
“This is the townhouse market that virtually disappeared in 2008 and now is making a comeback. It offers significant growth opportunities as outside that arena, there has been only a slow, gradual increase in the number of plans passed,” Meyer says.
Houses between R100,000 and R350,000, falling within the government-subsidised housing segment, cater to a different market, but also one in which government has been falling behind its targets. However, recent government initiatives are aimed at boosting delivery which signal an opportunity for growth and market penetration for Corobrik.
“The municipal elections this year will provide impetus as municipalities experience some urgency to deliver before their voters head for the polls. One example is the cycle tracks being installed in Soweto and Tembisa – good potential business for Corobrik,” says Meyer.