City’s Pickwick social housing site in Salt River advertised

05 March 2023

The City of Cape Town has advertised a tender for the sale and development of the well located Pickwick site in Salt River, central Cape Town.  The proposal for the development of Pickwick is testament to the City's commitment to providing residents with affordable social housing, which is close to economic opportunities and public transport

The sale and development of this well-located site in Salt River forms a part of the City's Accelerated Land Release for Affordable Housing Programme to unlock development opportunities in areas across the metro.

'This is the third site that we are advertising for sale and development in well-located areas within three weeks. The City continues to drive its Accelerated Land Release for Affordable Housing Programme and is making steady progress. We will continue with our roll out in the coming months.

'The Pickwick site is in the heart of Salt River and the development could yield approximately 1 800 residential opportunities. The site is very well located and only a few minutes away from the Central Business District (CBD). The proposal for the development of this site is a testament to the City's affordable social housing mission. 

The City has three social housing projects under construction currently, with a combined yield of more than 1 300 opportunities. A further estimated 1 600 social housing opportunities will also be unlocked through the release of an additional five City-owned land parcels within the city.

For more information and how to apply for social housing opportunities:

https://www.capetown.gov.za/City-Connect/Apply/City-housing-and-properties/Housing-opportunities/Apply-for-social-housing

Facts about social housing:

•                It is managed by accredited social housing institutions (SHIs).

•                SHIs are solely dependent on rental income. They receive no operational grants. They are able to service their debt finance through rental income.

•                As with any rental contract, tenants formally enter into lease agreements. The landlord is the SHI.

•                If tenants do not adhere to their lease agreements, the responsible SHI will follow the necessary legal process. Tenants must therefore pay to stay as the rental money is used for the day-to-day operation and upkeep of the complex.

•                The City has nothing to do with the day-to-day management of SHIs, the rental amount or evictions for not paying.

•                Before potential beneficiaries can apply for social housing, they are required to register on the City's Housing Needs Register.

•                Projects are developed on well-located, accessible land in and near urban centres.

•                It is not low-income subsidised government housing, such as Breaking New Ground (or the commonly called RDP housing and it is not City Council Rental Units).

•                It is managed with 24-hour security and access control.

•                The City may sell City-owned land at a discounted price for social housing developments to make projects economically viable.

•                Social housing offers improved access to social facilities and other amenities.

•                A single grant subsidy can benefit on average five households versus one household for Council rental units.

•                Social housing adds value to vacant pieces of land.

•                Social housing has the potential to improve property values in an area.

End

Published by:
City of Cape Town, Media Office