Cape Town housing crisis: More than 7 000 ‘affordable units’ to be constructed

Western Cape Premier Alan Winde on Monday unveiled an ambitious plan to tackle the province’s pressing affordable housing crisis, with over 7,000 units slated for development in the next few years.

“Affordable housing close to economic and job opportunities is a global problem, and here in South Africa our country’s tragic past makes this challenge even more complex,” said Winde.

He said the province’s efforts were bolstered by collaborations with municipalities and the private sector.

Housing projects in the pipeline

Winde said the 7, 000 housing units to be developed in the near future amounted to R3,334,848,.945.

In his statement, the premier mentioned projects in the pipeline which included the Adam Tas Corridor catalytic development, expected to yield between 2,753 and 3,835 inclusionary housing units over the next decade.

According to Winde, some of the completed projects have already made a significant impact.

The Conradie Park Project, for instance, offers 1,563 grant-funded homes, comprising 1,236 social housing units, 327 First Home Finance units, and 149 open-market units.

This mixed-income development also features Early Childhood Development facilities, primary schooling, retail and commercial spaces, and recreational areas.

Residents can access 1,004 affordable rental units, with monthly rates starting at R740 for bachelor units.

Another notable example is the Maitland Mews Rental Estate, which provides 204 affordable housing units in Maitland, Cape Town.

Completed in March 2023, this development boasts 24-hour security, recreational areas, and disabled-friendly units.

“The project forms part of the Maitland Metro rejuvenation initiative which will see the development of at least 1 200 residential opportunities in this centrally located node.”

Solar PV panels reduce electricity consumption, and at a total development cost of R95 953 055, rental prices range from R650 for bachelor units to R4,900 for two-bedroom units.

The Goodwood Station development, completed in July this year has 1,055 housing units.

Other initiatives across the province include the Mountain View Integrated Residential Development Programme in Mossel Bay, which will provide 278 First Home Finance Programme units and 725 Breaking New Ground houses.

The Mountain Ridge development in Paarl will offer 362 new social housing units.

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Criticism, challenges and funding concerns

In September, the city of Cape Town briefed the Western Cape National Council of Provinces (NCOP) on the state of social housing in the city.

It said it had 410,000 applicants on its waiting list of disadvantaged people needing social housing.

The city recommended exploring alternative funding mechanisms beyond government subsidies, but this raised sustainability concerns.

Winde lambasted activists claiming a housing problem in the province, criticising them for spreading misinformation about its housing situation.

“This does not help matters and only serves to divide us when we should be working together to find multiple solutions and approaches to meet our housing needs,” he emphasised.

Western Cape NCOP leader, Rikus Badenhorst acknowledged that lack of funding, cross-subsidy, and political support may hinder project delivery.

However, Badenhorst noted projects currently underway in Oudtshoorn, George, Knysna, Worcester, Stellenbosch, and other areas across the province.

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