Transformation of the commercial property sector for the realisation of its economic benefits : an exploratory study of key stakeholders' perspectives in South Africa

Abstract

Diverse sectors of the economy in democratic South Africa have transformed, however, the commercial property sector is still characterised as a domain of inequality. It is recognised that for generations, significant numbers of South Africans never experienced formal property ownership and its wealth creation benefits. This racially based inequality of the commercial property sector requires transformation. It is claimed that the South African commercial property sector is slow on transformation. The widely alluded justification for lack of transformation is that laws enacted before the democratic government were not transformative. Undoing the legacies of apartheid and colonialism requires profound societal transformation. It was thus critical to conduct a research with an aim to explore a study of key stakeholders’ perspectives in transformation of the commercial property sector for the realisation of its economic benefits in South Africa. The objectives of this study was to determine from stakeholders’ perspectives in the commercial property sector on whether there is transformation and identify factors that are affecting transformation of the commercial property sector from stakeholders’ perspectives and subsequently the realisation of commercial property sector’s economic benefits. The study adopted the transformation theory propagated by Jack Mezirow in 1978 as a conceptual framework underpinning the study. The transformation theory views democratic societal changes as being agentic, inclusive, open, seeking social justice and equity. A post-positivist research paradigm was adopted. The research adopted a qualitative approach and an exploratory research design. The population for the study was identified through purposive sampling and comprised of the Senior Executives from eight stakeholders in the commercial property sector: Property Sector Chartered Council, five South African commercial banks (Standard Bank, ABSA Bank, First National Bank, Nedbank and Capitec Bank), Department of National Public Works and Provincial Public Works. Snowball sampling was also adopted to obtain the perspectives of other stakeholders of the sector. A semi-structured telephonically interview schedule was used to collect data. Data was analysed through descriptive statistics and thematic content analysis. The study findings emanating from the literature and respondents suggested that policy frameworks need to be reviewed and enforced as the first point of departure. Secondly, lack of information must be resolved by introducing technology that has features of transparency, traceability, accessibility, and enhanced security. The third factor is the ownership of commercial property sector, its value chain and economic spin offs through an inclusive approach to ensure economic and societal balances. This takes a political slant and may be hard to debate. However, this research is timely, topical and addressed an important issue, which has both policy and practical implications for the future economic growth and development of the commercial property sector transformation.