The City’s auctioning of 53 parcels of land without any requirements for the provision of social or affordable housing is not aligned to the City’s affordable housing commitments, states the Development Action Group.
In a statement released on 25 Feb, the Development Action Group (DAG) noted the High Court’s dismissal of applications seeking to postpone the City auction.
But DAG, which is a leading non-profit organisation working for a more inclusive city, says at least 14 of the 53 sites being auctions are within the City’s Affordable Rental Overlay Zone. These are areas designated to enable small-scale rental housing under the amended Municipal Planning By-law adopted in 2025.
“Municipal land decisions carry long-term spatial consequences,” said DAG programme manager Zama Mgwatyu. “The court has ruled on the legal question (but) the policy question – how best to leverage public land to advance affordable housing – remains.”
DAG stated approval was granted in 2023 to dispose of the land parcels. This was before the City amended the by-law and before the City’s Mayoral Priority Programme on Small-Scale Rental Housing got going.
“The policy environment has shifted significantly since 2023,” said Mgwatyu. “The question is whether land disposal mechanisms are keeping pace with the City’s stated affordable housing ambitions.”
DAG acknowledged the City’s recent progress in establishing a Small-Scale Rental Housing Programme with the intention of creating a dedicated pipeline for municipal land release.
He said the City has shown what is possible by recently releasing four sites for affordable housing through a Request for Proposals package. “That is an enabling approach. It shows how public land can be strategically prepared to support affordable housing delivery.”
But he said auction-based disposal – which includes a R25,000 registration fee, a 10% deposit payable on the day of sale, commission fees and full assumption of development risk – limited participation by smaller, community-based developers active in the affordable rental market. It also meant the land could be bought on speculation and lie undeveloped for years.
“Municipal land is not just an asset on a balance sheet. It is a lever for spatial justice,” said Mgwatyu. “While the auction proceeds, the broader conversation about how public land is used to advance inclusion and affordability must continue.”