Amended Property Sector Code Published

Department of Public Works

The Amended Property Sector Code has been published in Government Gazette 40910.

The sector code seeks to promote transformation within the property sector.

It was published for comment at the end of 2015.

The code applies to a wide-range of players in the property sector including residential property, commercial property, property development and property valuation.

Enterprises with an annual total revenue of R10 million or less qualify as exempted micro-enterprises (EME).

EMEs with 100% Black ownership qualify for elevation to level one contributor.

Estate agencies with an annual turnover less than R35 million will qualify as a qualifying small enterprise (QSE).

The management control element has been split into management control and employment equity.

The code also contains an economic development element which measures the extent to which entities contribute towards development in under-resourced areas.

The property QSE sector code scorecard and generic scorecard are provided.

In terms of the QSE scorecard, ownership is given a weighting of 27 points while enterprise and supplier development has been allocated 35 points.

The priority elements are ownership, skills development and enterprise and supplier development.

A large enterprise is required to comply with all the priority elements while a QSE must comply with ownership as a compulsory element and either skills development or enterprise and supplier development.

Sabinet Cape Town Office