South Africa: City of Cape Town Proposes Affordable Housing On Prime Green Point Site

27 March 2025
GroundUp (Cape Town)
By Matthew Hirsch and Steve Kretzmann

The land value of the site ranks "among the highest in the southern hemisphere"

  • The City of Cape Town has approved the sale of more than four hectares of prime land traversing Green Point and Sea Point.
  • The site currently includes the Sea Point library and civic centre, which are to be retained.
  • Affordable housing is proposed within what is to be a mixed-use development.
  • The public is invited to contribute to the development concept.

More than four hectares of prime land across the boundary of Green Point and Sea Point are to be auctioned off by the City of Cape Town for mixed-use development which includes affordable housing.

The plan to sell the triangular site between Main Road and Helen Suzman Boulevard, which includes the Sea Point library on the western edge, and an electrical substation on the east, was approved during a council meeting in December last year. In March, the subcouncil was notified of the upcoming public participation process required for sale of the land.

According to the City, the site "is remarkably well connected to key destinations along the Atlantic Seaboard as well as to Cape Town's CBD." It is close to landmarks such as the Sea Point Promenade, Cape Town Stadium, Urban Park, V&A Waterfront, and along a MyCiTi bus route. The land value of the site ranks "among the highest in the southern hemisphere".

Besides the Sea Point library, the land is also home to the civic hall, a crèche, private sports grounds and clubs, public parking, and vacant land sometimes used as an informal market.

The library and civic hall will be retained within development plans, as this was a condition of council's approval of the sale. However, they "could take on a different form", according to the City documents before the subcouncil.

The notice before the subcouncil states that a first public participation process will take place ahead of the legally required public participation process. This is so that the community can provide ideas for the development of the site which will be included in the development concept. The public will then be given the chance to make formal comments on the proposed development concept, after which the statutory public participation will take place.

Affordable housing

The City plans to sell the land through a "competitive bidding process to the open market for the purposes of high intensity mixed use development". This would include affordable housing, although the City states this is "subject to feasibility investigation". Affordable housing considerations would also be made "within the context of the micro and macro socio-economic housing affordability needs of the receiving area".

In the Technical Investigation before the subcouncil, in which City departments comment on the sale proposal, Human Settlements official Kelly Arendse stated the site had previously been investigated for affordable housing development. "It was indicated by (the property development) department that this site will be technically investigated with the consideration of affordable housing inclusion," stated Arendse, adding that her department supported the inclusion of affordable housing relevant to the needs of the neighbourhood, and the City as a whole. Human Settlements was also to be included in the project management team and "any other relevant forum".

Dilshard Modak, for the Spatial Planning and Environment Department, further supported affordable housing due to the "highly strategic location" of the site. Modak also suggested the Community Services and Health Department should consider social services being included on the site, and the proposal should show the site's potential for "extraordinary public benefit".

He added that the library and its heritage qualities, as well as mature trees, should be retained.

In his November statement of support for the sale of the property, Mayor Geordin Hill-Lewis said: "We are proud to kick-start the land release process for yet another well-located property to drive economic growth and inclusive development, including well-located affordable housing." Hill-Lewis estimated the site's market value at R680-million.

Criticism

Independent urban policy researcher Nick Budlender said the use of public land to build affordable housing in well-located areas was one of the simplest and most powerful ways of addressing Cape Town's housing and segregation crisis.

But he said he was disappointed to see "another piece of public land with such transformative potential being lost to the private market."

He said he was concerned the City was "paying lip service to affordable housing as a way of forcing through a development that is unlikely to include any genuinely affordable homes".

GOOD party councillor Axolile Notywala also opposed the sale of the land. In the December council meeting, Notywala said GOOD proposed a moratorium on the sale of all public land in the city until an affordable housing policy was finalised. Such a policy, expected this year, would guarantee affordable housing development by the private sector, he said.

But Development Action Group (DAG) researcher Querida Saal cautiously welcomed the proposed sale of the land, especially if it is used to increase the number of affordable housing options in the city.

"Cape Town's housing need is extensive; there are over 360,000 people on the City's housing waiting list. Ensuring that this public resource is optimally maximised to respond to the critical need for affordable housing that is close to jobs, amenities, and transport networks is therefore paramount," said Saal.

She said it was "crucial" for the City to take the high demand for affordable housing into consideration and ensure that the use of public land was aligned with public need.

But it was "vital" to question the number of housing opportunities that would cater to the gap housing target as opposed to commercial opportunities. Additionally, it would be important to see how many options would be delivered for families at the lowest end of the scale (households earning between R3,501 and R6,000 a month).

The general manager of the National Association of Social Housing Organisations, Karabelo Pooe, said mixed use developments incorporating affordable housing were a common international practice.

Pooe said the City should specify the number of affordable housing units to form part of the development and use title deed restrictions to ensure the units were not lost to speculators.

Those wishing to participate in the development concept proposal and stay informed can register on the dedicated website https://www.infinity.capetown/3anchorbay

The first round of public input is slated for May, and design workshops will only be communicated and accessible to those who have registered their interest.

The statutory public participation process is set for October.

Read the original article on GroundUp.

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