Amid growing national pressure, Cape Town unlocks another R256 million land opportunity for affordable homes
06 August 2026
A housing crisis cannot be solved by waiting for government to do more of the same. The City of Cape Town continues to accelerate affordable housing delivery despite growing pressure on the national housing sector, today releasing another strategically located public land opportunity to the private sector.
The City has undertaken preliminary feasibility assessments for the Annandale site and is inviting developers to submit innovative proposals by 10:00 on 21 October 2026. Proposals should look at maximising housing opportunities while ensuring a sustainable and integrated development.
The 71,8-hectare Annandale site in Milnerton, valued at approximately R256 million, forms part of the City’s accelerated land release programme, which is unlocking well-located municipal land to create affordable housing opportunities through public-private partnerships.
At a time when housing delivery across South Africa is being impacted by funding reductions, implementation challenges and increasing demand, Cape Town has chosen a different path – releasing land, reducing development barriers and creating investment-ready opportunities to drive delivery.
The City’s Mayoral Committee Member for Human Settlements, Councillor Carl Pophaim, said government cannot use constraints as an excuse for inaction.
‘The housing challenge facing South Africa is significant, but the answer cannot simply be to wait for circumstances to change. Government must innovate, remove obstacles and use every available asset to create opportunities for people. Public land should never simply sit idle while families wait for a place to call home. The true value of land is not what it is worth on paper. Its true value is measured by how many lives it can change.’
Strategically located along the N7 mobility corridor, the site represents a major opportunity to create an integrated mixed-use, mixed-income neighbourhood comprising affordable housing, residential development, commercial and retail opportunities, educational facilities, community services, transport infrastructure and quality public open spaces.
The development will contribute to Cape Town’s broader spatial transformation objectives by creating a more connected and inclusive urban environment where more residents can live closer to jobs, transport and economic opportunity.
‘For too long, well-located land has remained trapped in lengthy processes while the need for housing continues to grow. We have changed that model. We identify strategic land, complete the necessary preparation, reduce risk and bring investment-ready opportunities to market. Despite significant reductions in national housing funding, Cape Town has refused to slow down. We are not waiting for delivery – we are creating the conditions for delivery,’ said Councillor Pophaim.
Important information:
A clarification meeting will take place at 10:00 on 13 August 2026. Interested parties are encouraged to register attendance by emailing affordable.housing@capetown.gov.za. The deadline for submissions is 10:00 on 21 October 2026. Late submissions will not be considered.
The City’s Affordable Housing Programme supports households earning between R3 500 and R34 400 per month, responding to one of the fastest-growing segments of housing demand in Cape Town.
‘In this term of office alone, Cape Town has released more affordable housing land than was released during the previous decade. Our pipeline has now grown beyond 12 000 affordable homes in well-located areas across the metro, including approximately 4 000 units entering construction in the CBD this year alone.
‘These are not just numbers on a spreadsheet. They represent families who will have better access to opportunity, workers who will spend less time commuting and communities that will become more integrated. The Annandale release is another step in advancing Cape Town’s commitment to undoing the legacy of apartheid spatial planning through practical delivery.
‘Spatial transformation cannot happen through speeches alone. It happens when government unlocks land, enables investment and delivers homes in the right locations. This programme is about turning public assets into public opportunity,’ said Councillor Pophaim.
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Published by:
City of Cape Town, Media Office
