Government sitting on thousands of vacant properties, while taxpayers pay R65m on rates and taxes

In a recent parliamentary exchange, Minister of Public Works and Infrastructure Dean William Macpherson revealed that the government currently holds a significant number of unused properties across the country, resulting in substantial financial losses.

According to Macpherson, as of 27 February 2025, the government owns 1 259 vacant land parcels, 207 unoccupied houses, and 830 abandoned farms that have not been allocated for use.

The minister was responding to questions posed by Economic Freedom Fighters (EFF) MP Mothusi Kenneth Montwedi regarding the status of unused state properties.

When asked about specific allocation timelines for these properties, Macpherson expressed security concerns.

“Due to vacant properties being at risk of invasion should their details be made public, I am open to discussing this matter further with the Member in my office in Cape Town,” he stated.

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State properties financial impact

The financial burden of maintaining these vacant properties is considerable.

Macpherson disclosed that the estimated potential revenue lost in the 2024/2025 financial year amounts to R83 million, based on calculations from the Property Management Information System (PMIS) regarding holding costs.

Additionally, the government has spent R65 million on rates and taxes for these properties as of 31 January 2025.

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State-owned properties utilisation strategy

To address this issue, Macpherson said the Department of Public Works and Infrastructure has implemented several initiatives.

“The department has initiated a programme of letting out unutilised state-owned properties to interested investors,” Macpherson explained.

“Currently, the department has placed 31 properties [on] the open market, inviting interested investors to submit proposals on optimal utilisation and revenue generation.”

The deadline for proposal requests regarding the 31 properties has been recently extended to 30 April.

The decision follows Macpherson revealing that the properties were in high demand in the private sector.

Valued at R1.4 billion, the properties are scattered across the country.

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According to the minister, looking ahead to the 2025/2026 financial year, the department plans to release approximately 30 additional properties for long-term leasing and re-advertise about 600 state-owned properties for general letting.

Additionally, it has committed to releasing agricultural farms not earmarked for the Department of Agriculture for long-term leasing and permanently dispose of non-core residential properties.

These measures aim to reduce the financial burden on the government while ensuring more productive use of state-owned assets.

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