Lead

The City of Cape Town has approved the release of an underutilised parking lot adjacent to the Civic Centre for a mixed-use development that will include affordable housing, according to a report tabled before the council on Wednesday.

Coverage Comparison

Two separate reports confirm the city's approval of the project, though they differ in detail and emphasis. A report from EWN, carried by AllAfrica, notes that the mayoral committee approved plans to redevelop the municipal parking lot into a mixed-use development with affordable housing. The report quotes Mayco Member for Economic Growth James Vos as saying the redevelopment forms part of a broader plan to release well-located land for affordable housing in the inner city.

A second, more detailed report – also distributed via AllAfrica – provides additional specifics, including the estimated land value of R235-million and the planned height of 20 to 24 storeys. This report also confirms that a formal public participation process will now begin, after which bids will be invited to purchase the property.

Key Claims

The development will include an unspecified number of "market-driven" affordable housing units, which are distinct from social housing in that they will likely not be subsidised with state funds. Instead, the City's model for affordable housing – targeted at households earning less than R32,000 a month – relies on cross-subsidising with high-end units in the same development.

According to the council report, the site currently has 355 parking spaces, 70 of which are allocated to the City's vehicles. Only half of the parking spaces are used on weekdays, the report says.

Proceeds from the sale of the land, estimated at R235-million, will be used for maintenance or improvement of the Cape Town Civic Centre, should the sale proceed.

The development is expected to attract around R1.5 billion in private investment and could create up to 3,500 jobs during and after construction, according to one of the reports.

Perspectives

At Wednesday's council meeting, GOOD councillor Axolile Notywala said land should be prioritised for inclusionary housing. His party had previously proposed a moratorium on the sale of public land until an affordable housing policy was finalised. "If Cape Town had an inclusionary housing policy, the foreshore land could benefit some of the over 20,000 City of Cape Town working-class employees," Notywala said.

Housing activists Ndifuna Ukwazi welcomed the move and called for more land to be released for social housing, according to the EWN report.

The council report frames the project as "a strategic response to long-standing criticism regarding its limited progress in addressing the structural imbalances in the CBD residential property market."

In 2024, the #Land4PeopleNot4Parking campaign identified four other sites that could be used for similar purposes, though no further details are available.