The community of "Azania", which moved on to land owned by the Louiesenhof family trust was shocked by the murder of Stefan Smit at home on Sunday night, a community leader said on Monday.
"That is shocking. Who would do something like that?" asked Midas Wanana.
"It is very painful for us. We are sending condolences to his family. What are they going to do without him?"
Wanana added: "this is the police's work now".
Wanana said the portion that the family owned, and that hundreds of backyarders had moved on to, originally called Watergang, has already been bought by the Stellenbosch municipality.
"The money is in the bank," he said.
Last year's occupation set off an interdict process to remove the occupants. The Western Cape High Court heard the matter.
There were clashes with police during attempts to remove them.
In the meantime, Louiesenhof was still an active crime scene with forensics experts scouring the property.
It has a double fencing system with electric fence and barbed wire.