The Riverside Apartments project in Diepsloot, a two-phase partnership between JPC and Century Property Developments, aims to provide quality affordable rental housing to meet Johannesburg's growing demand.
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Investment in the residential property sector continues to perform poorly, with investment growth declining by 7.2%.
This can, to some extent, be explained by the ongoing decline in housing delivery in South Africa, says Francios Viruly, real estate and property economist and chief economist at Datazone.
He says the first-quarter 2026 Real gross domestic product (GDP) figures provide mixed signals for the South African Non-Residential property sector.
“To start on a positive note, South Africa recorded economic growth of 0.5% (a/g) in the first quarter of 2026, marking the sixth quarter of economic expansion. Yet a deeper dive into these figures shows mixed implications for the property sector.
"First, manufacturing output, a driver of industrial space, performed poorly, with -0.8% q/q growth, and consumption expenditure, which drives the retail sector, came under pressure, recording only 0.1% g/g growth, down from 1.2% in Q4-2025, suggesting that the SA households are under pressure.
"The greatest concern is the 1.1% g/g decline in Gross Fixed Capital Formation (GFCF) recorded in the first quarter of the year - a long-term driver of the economy and demand for space.”
According to Statistics South Africa (Stats SA), the local economy maintained its positive momentum in the first quarter of 2026 (January - March) as GDP increased by 0,5%, marking a sixth consecutive quarter of growth.
Finance, agriculture, trade and transport did the heavy lifting on the production (supply) side of the economy. The expenditure (demand) side was supported by a decline in imports and a rise in household consumption, government consumption and exports, the statistical agency said on Tuesday.
In the non-residential sector, Viruly says the opposite was recorded with growth of 8.1% g/q - this is also the highest figure since the second quarter of 2022 - post Covid. He says the latter suggests that the non- residential sector entered the year with strong fundamentals, especially in the logistics and retail sectors.
Looking ahead, the chief economist says cognisance should be given to the fact that the BER Business Confidence Index (BCI) fell sharply in the second quarter of this year.
He says this suggests that economic growth prospects could be losing momentum, which does not bode well for medium-term capital expenditure and demand for space.
“These GDP figures and the decline in business confidence should place increasing pressure on the government to proceed with capital expenditure projects, deliver homes, and implement policies that enhance business confidence and capital expenditure,” Viruly says.
Meanwhile, the City of Johannesburg's property development and management entity, Joburg Property Company (JPC), says it continues to make progress on the Riverside Apartments Development in Diepsloot as part of the City's commitment to creating more affordable housing opportunities and building communities that are inclusive and sustainable.
Located in Riverside View Extension 104 and Extension 105, the Riverside Apartments project is being implemented through a partnership between JPC and Century Property Developments.
Planned in two phases, the development is expected to increase access to quality affordable rental housing and help address the growing demand for housing in Johannesburg.
The project remains an important investment in improving access to affordable accommodation for residents, JPC spokesperson Lucky Sindane says. "Phase 1 of the development was originally planned to deliver 1 573 residential units.
"However, Eskom's powerline infrastructure extended beyond the registered servitude area, reducing the amount of land available for development. As a result, Phase 1 has been revised to 632 units. Phase 2 remains unchanged and is expected to deliver an additional 1 797 units," Sindane adds.
Despite this setback, Sindane says the project continues to move forward.
"We have maintained momentum and continued with key planning and preparation work to ensure the development remains on course.
"During the fourth quarter of the 2025/2026 financial year, we achieved important milestones, including progress on planning approvals, infrastructure design, access road approvals and advance funding processes," he said
Preparatory work on site is said to be already underway and includes fencing, security infrastructure and ablution facilities delivered through the appointed SMMEs supporting the project.
Civil working drawings have been completed and submitted to the relevant city departments, bringing the project closer to the next phase of development. Planning for water, sanitation and electricity infrastructure has also progressed, with approval already secured for the electrical link line.
The development is said to also make provision for future community infrastructure, including land set aside for a school facility, which will be transferred to JPC once the required statutory and servicing processes are completed.
In addition, approvals have been secured to enable future access road development, improving connectivity and preparing the area for construction activities.
Although the affordable housing funding application had to be revised following changes to Phase 1, resulting in delays, the project has regained momentum and is currently being prepared for Council consideration and funding approval.
The JPC says it remains committed to driving developments that unlock opportunities, improve access to housing and contribute to long-term growth.
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