Infrastructure

Question by: 
Hon Pat Lekker
Answered by: 
Hon Tertuis Simmers
Question Number: 
5
Question Body: 

The New York Times reported that up to 70 per cent of residential stock in parts of the city centre of Cape Town is being used for hotels and short-term rentals:

Whether his Department has met with the City of Cape Town to discuss this issue; if so, (a) what was the outcome and (b) what is his Department doing to protect access to affordable housing for Western Cape residents?

Answer Body: 

No, there has not been a meeting with the City of Cape Town to discuss the use of what is essentially privately – owned accommodation infrastructure. The Province and the City do, however, meet regularly to discuss the challenges of affordable accommodation.

  1. Not applicable

(b)     Where accommodation is provincially  owned it is made available according to prescribed affordable housing criteria. The Department has adopted a multi-pronged strategy to tackle the housing affordability crisis, primarily focusing on spatial transformation, bringing residents closer to economic hubs and areas of opportunity. Spatial transformation is guided by principles contained in the Spatial Planning and Land Use Management Act (SPLUMA), the National Development Plan (NDP) and the Social Housing Act, where applicable.

With specific reference to the Metro, the City of Cape Town’s Human Settlements Strategy   emphasises the importance of well-located housing in enabling access to economic opportunities, public transport, and social amenities. Accordingly, land identification and housing development are aligned to the Municipal Spatial Development Framework (MSDF), with priority given to Development Corridors, Transit-Oriented Development (TOD), or Mixed-Use Intensification areas. 

Furthermore, the Municipal Systems Act, Act 32 of 2000 requires all metros and municipalities to develop an Integrated Development Plan (IDP). It is a process through which municipalities prepare a strategic development plan which extends over a 5-year period. The IDP then provides an overall framework for development and aims to co-ordinate the work of local and other spheres of government in a coherent plan to improve the quality of life for all the people living in an area. It typically considers the existing conditions, needs, challenges and resources available for development and seeks to facilitate the municipality and the community to find the best solutions towards sustainable development.

The Department has regular municipal engagements with the senior executive management teams of each municipality. This is to ensure the required alignment with both the prioritisation, planning and funding of existing and future developments, in order to meet the IDP goals and objectives. 

The Department supports the development of affordable housing within gazetted Restructuring Zones (RZs) and Priority Housing Development Areas (PHDAs), which are designed to attract investment in well-located areas and provide rental options at below-market rates. The Department has developed a significant social housing pipeline and is actively advocating for adequate funding for the implementation of the pipeline while simultaneously investigating and pursuing alternative funding models and sources of finance.

The Department has released numerous well-located provincial land parcels in the Cape Town CBD and surrounding areas for residentially led, mixed-use developments. These opportunities include Prestwich Precinct, Leeuloop, 353 on Main {Tafelberg] and the Founders Garden site. All these are major inner-city developments that are designed to provide affordable rental and ownership opportunities within walking distance of jobs, transport and amenities. 

 

 

Date: 
Thursday, June 4, 2026
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