Cape Town Sells 71-Hectare Annandale Farm to Private Developers After Nine-Year Housing Delay
The City of Cape Town has released the 71.8-hectare Annandale Farm in Milnerton to private developers, nine years after purchasing the land with national grant funds originally intended to relieve overcrowding in nearby Dunoon. GOOD Party Secretary-General and mayoral candidate Brett Herron disclosed this week that a Promotion of Access to Information Act request confirmed the metro bought the property for R162.6 million using the Urban Settlement Development Grant. While national treasury rules ring-fence these grants to acquire well-located land and expand access to basic amenities for low-income households, the municipality is now disposing of the site to commercial entities for R71 million more than its original acquisition cost without guaranteeing direct state housing.
Opponents Challenge Lawfulness of Land Release Deal
National Treasury grants are strictly designated to acquire well-located land and expand access to basic amenities for low-income residents, sparking sharp criticism from political opponents over the transaction. Herron accused the metro of unconscionable profit-making, noting that zero houses have been built on the land in nine years. The GOOD Party plans to approach the National Department of Human Settlements to challenge the lawfulness of the deal.
In response, Mayoral Committee Member for Human Settlements, Councillor Carl Pophaim defended the land release strategy by rejecting allegations of profiting from public assets. Pophaim explained that the R71 million figure represents a statutory market valuation required by the Municipal Finance Management Act rather than a net financial profit.
“The disposal of the asset is not intended to generate a profit for the City, but rather to enable the discounted release of the property in exchange for the maximisation of affordable housing opportunities,” Pophaim stated.
The City argues that public-private partnerships have become necessary because statutory bodies like the Social Housing Regulatory Authority have halted funding allocations to Cape Town projects for over five years. National policy shifts restrict state-subsidised Breaking New Ground homes to child-headed households, military veterans, and elderly citizens earning under R3,500 per month, leaving the city's land release scheme to target working-class households earning between R5,900 and R30,000 monthly.
Dunoon Community Disillusionment Amid Long-Stalled Housing Promises
For residents in overcrowded Dunoon, policy debates offer little relief after years of unfulfilled housing commitments. Community activist Thembelani Ndabezimbi noted that previous promises for housing developments behind a local retail centre never materialised.
“Hearing that the City is selling that particular land to a private developer did not come as a surprise because I have gotten used to disappointments,” Ndabezimbi said. “I am hurt because after so many protests and marches, we feel like we marched for nothing.”
Residents remain skeptical that private developments will cater to Dunoon’s core population, where widespread unemployment makes commercial rental brackets difficult to meet. Many backyard dwellers have resorted to occupying vacant land and building shacks. Community members argue that if the City proceeds with selling the land, the generated funds should instead purchase land and provide basic serviced plots for self-built housing.
What Was the Purpose of Annandale Farm?
What was the original purpose of Annandale Farm?
The City of Cape Town purchased the 71.8-hectare property in Milnerton using national Urban Settlement Development Grant funds intended to relieve overcrowding in nearby Dunoon.
Why is the City selling the land to private developers now?
City officials state that statutory bodies like the Social Housing Regulatory Authority have halted funding allocations to Cape Town projects for over five years, forcing the municipality to leverage private capital and offer discounted land releases to secure affordable housing opportunities.
Who is challenging the land release transaction?
GOOD Party Secretary-General and mayoral candidate Brett Herron disclosed the details of the transaction via a Promotion of Access to Information Act request and announced that the party will approach the National Department of Human Settlements to challenge its lawfulness.
Related reading