The housing market, mine closure and urban management in Welkom in the Free State Goldfields, South Africa

Abstract

When a mine closes, it puts households at risk of economic harm from depreciation in the property market. South African housing policy in mining areas promotes homeownership but does not take into account the effects of mine closure. A global literature has developed on shrinking cities, and we use the example of shrinking in Welkom in the Free State Goldfields to show how mine closure results in urban shrinkage. We use a concurrent mixed-methods approach and a case study research design. We assess data from the deeds register in Welkom, a household survey and 32 semi-structured interviews. Our findings point to far below-average growth in property prices and property tax income for the municipality. We also found that mine closure leads to informal land transfers and abandoned houses. We argue that Matjhabeng Local Municipality’s inability to plan for decline and failure to adopt tactical urbanism compounds its urban management problems.

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