Cape Town affordable housing projects inch forward

Source: GroundUp/Matthew Hirsch.

On Wednesday, 18 March 2026 Premier Alan Winde, Mayor Geordin Hill-Lewis and infrastructure MEC Tertuis Simmers briefed the media at the site of the planned Prestwich Precinct, which will consist of 310 residential units, including 120 affordable housing units.

Affordable housing, according to current policies, is targeted at households earning about R30,000 a month. The remaining units will be made available on the open market, which would cross-subsidise the affordable housing units.

Simmers announced that a Request for Proposals will be advertised on 10 April to appoint a developer to construct two multi-storey buildings. The land is owned partly by the national Department of Public Works and partly by the City of Cape Town. The project is a partnership between the department, the City, and the Western Cape government.

Last year, Simmers launched two other developments: the Leeuloop Precinct on Loop Street and the Founders Garden development next to Artscape.

Leeuloop will deliver 830 units, about a third of which will be state-subsidised social housing to be rented by households earning below R22,000 per month. Sod-turning was planned to take place last year, but this has not yet happened.

Simmers said on Wednesday that a developer has been appointed and the bidder will be announced next week during his department’s budget speech.

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The Founders Garden development is set to include 2,630 units of which 1,476 will be for social housing. Last year, Simmers wrote that the project was “moving into procurement and developer appointment”.

He noted on Wednesday that he hopes procurement will be finalised this year.

Bevil Lucas, a leader in the housing movement Reclaim the City, questioned whether the developments would truly be affordable for low-income earners, for example, people working at the Cape Town docks.

Buhle Booi, of housing advocacy group Ndifuna Ukwazi, noted that the site has been earmarked for housing since 2014.

“We worry that these unveilings will lead to no development. What people are interested in seeing is the development of affordable and social housing,” he said.

“National Treasury must allocate more funds for affordable housing,” said Booi.

Published originally on GroundUp

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