Major auction of city-owned land parcels in Cape Town scheduled for February

The release of the iconic Good Hope Centre precinct for redevelopment is a strategic move aimed at unlocking its immense economic potential.

It would also revitalise the broader precinct and leverage private-sector investment to boost job creation and economic growth to benefit Cape Town residents.

“By releasing this site for revitalisation and redevelopment, we are giving the private sector the opportunity to develop a vibrant mixed-use precinct.

"Heritage elements, including the dome, are preserved through the conditions of sale, while the surrounding land can be transformed into multiple uses, unlocking significant economic and spatial value for the inner city,” said Alderman James Vos, Mayoral Committee Member for Economic Growth.

Last December, the city announced that several significant properties would be included in a major auction of city-owned land parcels, scheduled for February 26. 

It said approximately 50 opportunities, zoned for residential, commercial, industrial, community, and mixed-use purposes, will be made available for sale and lease. The full list will be accessible on the website of the city-appointed auctioneer, Claremart Group.

Key verified development information for investor due diligence includes:

• Land extent: 2,4843 hectares, as per SG Diagram No. 6258/2001.
• Zoning: Mixed Use Subzone 2 (MU 2) and Transport 2.
• Approved Development Rights: GLA of 8,038 m², as confirmed by the 2020 Zoning Map Correction Approval.
• Gross Building Area (GBA): 27,804 m², verified through digitised plans by an independent consultant.

These parameters provide a clear foundation for feasibility modelling and redevelopment planning.

City-wide portfolio: ± 50 properties on auction

A wide range of opportunities across multiple investment categories and strategic growth areas will be available for sale and lease:

• Residential sites: Kraaifontein, Westridge, Atlantis, Durbanville, Goodwood, Eerste River, Coniston Park, Bridgetown, Athlone, Maitland and Vredehoek.
• Commercial sites: Foreshore, City Centre, Mitchells Plain, Montague Gardens, Parow, Blue Downs, Century City, Bellville, Belhar and Goodwood.
• Industrial sites: Atlantis, Epping, Khayelitsha and Kuils River.

In total, about 282 000m² of land will be released, thereby creating diverse entry points for developers with varying investment profiles, from mixed‑use precincts to industrial expansion and urban infill housing.

Reasons for the city's release of these properties

All properties identified for auction are said to have been thoroughly assessed and confirmed as not required for municipal purposes.

“The revenue generated from the sale or lease of these properties is reinvested directly into service delivery across Cape Town, benefitting our residents.”

Driving investment and economic growth

“Cape Town is a city full of opportunity, and as custodians of its assets, it is the city’s responsibility to ensure that municipal land and buildings contribute to the city’s growth and the well-being of its residents.

"This upcoming auction is a sterling opportunity for private-sector investment across the metro, with each site being carefully packaged to attract capable investors ready to deliver tangible benefits for communities and the broader economy.

"By continuing to unlock the potential of municipal land, transform dormant properties into economic catalysts, and create jobs and opportunities, we are building a city that is sustainable, inclusive, and full of promise, a Cape Town where everyone can share in its growth and prosperity.

"I firmly believe that our land portfolio must drive economic growth rather than sit idle, and this auction sets the standard for how we will put our properties to productive, purposeful use. To ensure full transparency, bidders will have the opportunity to compete via a public auction.

"This major land release initiative complements the broader pipeline of disposals successfully delivered over the past several years,’ said Vos.

About the auction

City-appointed service provider, Claremart Group, will oversee the process in full compliance with all legislative and governance requirements.

In an opinion piece written by Vos on the Invest Cape Town website, the Mayoral Committee Member for Economic Growth said that too often, municipal property sits idle, costing money to maintain while generating little public benefit, or even contributing to urban blight. 

He said over the past few years, his directorate has worked to identify underutilised or surplus properties across Cape Town, packaging them in a way that allows private-sector investment to transform them into engines of economic and social opportunity. 

According to Vos, many of these sites have already been developed for residential, social, and commercial purposes, contributing to job creation, housing delivery, and new economic activity.

This approach runs alongside work with the Human Settlements Department, where the economic development directorate has prepared and released land specifically to expand the pipeline for affordable and social housing, ensuring a steady supply of opportunities for residents while protecting the city’s fiscal sustainability.

“One of the most compelling examples of this strategy is the Good Hope Centre precinct. For years, this iconic site has been underutilised, absorbing maintenance costs while generating little return.

"By releasing this site for revitalisation and redevelopment, we are giving the private sector the opportunity to develop a vibrant mixed-use precinct. Heritage elements, including the dome, are preserved, while the surrounding land can be transformed into commercial, residential, cultural, and event spaces, unlocking significant economic and spatial value for the inner city.” 

According to Vos, this major land release initiative complements the broader pipeline of land releases that have already been executed successfully over the past several years.

By unlocking private-sector investment, activating underutilised spaces, preserving heritage, creating construction and operational jobs, revitalising areas of the city, and generating long-term fiscal and public value, Cape Town turns dormant assets into engines of growth and opportunity for residents and investors alike, he said.

In the 2024/25 financial year alone, the City’s Property Transactions Department exceeded all its targets by generating over R262 million in revenue with the transfer of 70 properties to new owners, as well as R1 million monthly in rental revenue via 233 new leases.

Overall, the city said it was then bringing in R334m in annual lease revenue. In this way, the city said it is lessening the burden on ratepayers by diversifying revenue.

For investors and developers, Cape Town offers unique opportunities. The Good Hope Centre, alongside the upcoming February auction, represents a golden chance to participate in the city’s transformation.

These projects are not only financially compelling; they are also socially and economically catalytic, shaping the city’s future while delivering long-term value.

In the end, Vos said what drives them is clear: they refuse to let assets gather dust.

“By continuing to unlock the potential of municipal land, transform dormant properties into economic catalysts, and create jobs and opportunities, we are building a city that is sustainable, inclusive, and full of promise, a Cape Town where everyone can share in its growth and prosperity.” 

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