The City of Cape Town has formed a public/private partnership with the Watergate Housing Development and New Age Property (Development) to develop an R800 million housing project in Mitchells Plain.

The development, which is on 22 hectares of land, will provide affordable, bondable housing for 4 500 families in the R5 000 –– R10 000 income bracket. This sector of the market is often precluded from state housing subsidies (because of their higher earnings), and are also unable to participate in the private housing market due to the higher prices commanded by houses in this category.

The development, which will be marketed as Watergate Estate, will comprise 2 200 apartments, 800 conventional separate title units, a mini shopping centre and open spaces with recreational facilities when it is complete. The units will include 1 – 3 bedrooms, and will be single and double storey. The apartments will measure between 48m² and 62m². They are to be built on a 22 hectare site that has till now been a safety concern for the community.

At a sod-turning ceremony held on Saturday, 25 July to launch the project, Executive Mayor Alderman Dan Plato said: “The City of Cape Town is proud of such initiatives, especially in the context of the housing crisis.
The City of Cape Town has formed a public/private partnership with the Watergate Housing Development and New Age Property (Development) to develop an R800 million housing project in Mitchells Plain.


“The project does far more than just provide adequate housing – it will also provide employment, enhance skills development and create training opportunities for the communities of Mitchells Plain, Philippi and Khayeltisha.”

George Penxa, Director for the Urban Renewal Programme said, “The Watergate Housing Development will boost the local economy and job creation significantly as the estimated cost of the project is about R800 million during the three years of construction.”

Anver Essop, Managing Director: New Age Property Development said that first time buyers will be able to apply for a 100% bond to buy a Watergate Estate unit. “We have negotiated a package deal with a leading financial institution to meet a long standing need in the property market for 100% bonds for novice buyers” he noted in his speech.

Watergate Estate is an anchor project for the Urban Renewal Programme, a national urban renewal strategy which includes investment in economic and social infrastructure, human resource development, enterprise development, the enhancement of the development capacity of local government, poverty alleviation and the strengthening of the criminal justice system