CAPE TOWN, SOUTH AFRICA - FEBRUARY 24: Various groups protest against the planned City of Cape Town's land auction during a march from Good Hope Centre to Cape Town High Court on February 24, 2026 in Cape Town, South Africa. The City of Cape Town plans to auction off 50 parcels of City-owned land on February 26th. (Photo by Gallo Images/ER Lombard)
The City of Cape Town pressed ahead with a controversial land auction on Thursday, selling 50 parcels of municipal land despite opposition from civil society groups, political parties and the South African Human Rights Commission (SAHRC).
City ignores calls to halt auction
The auction, which was initially scheduled to take place at Cape Town Stadium before being moved online, went ahead at midday despite mounting pressure on the city to stand down.
The SAHRC had urged Mayor Geordin Hill-Lewis to postpone the auction, warning of the potential adverse human rights implications.
The commission on Monday revealed it had met with Hill-Lewis on 20 February and followed up with written correspondence, but its appeals were disregarded.
“The commission remains concerned that the city is relying on public participation processes and in-principle approvals that occurred as far back as 2019, 2021 and 2022,” the SAHRC said.
It added that in a post-pandemic socio-economic landscape, these processes were “no longer temporally relevant”.
The commission also flagged a critical gap between the city’s stated intentions and its actual auction conditions.
While Hill-Lewis indicated that portions of the land were intended for social or affordable housing, the commission said that no enforceable conditions to that effect would be attached to the sale.
“The commission is therefore unsure how the city’s stated intentions will be realised without enforceable legal conditions,” it said.
The SAHRC warned that should the city proceed without meaningful engagement, it would “take all necessary steps to discharge its mandate and protect constitutional rights”.
ALSO READ: Govt housing developments behind target as South Africans struggle with affordability
Housing crisis backdrop deepens the controversy
Critics argue the timing and nature of the auction are particularly callous, given Cape Town’s acute housing shortage.
🟡The City of Cape Town’s contentious property auction is currently taking place online. The auction of over 50 parcels of land, including the iconic Good Hope Centre, has drawn protests and opposition from housing activists, political parties and members of the KhoiSan… pic.twitter.com/0gCIIJgcYh
– Smile90.4 FM (@Smile904FM) February 26, 2026
ANC Chief Whip Mdumiseni Ntuli on Thursday said the city was disposing of land that could be used to address this issue.
“While the housing waiting list stands at over 400 000, the city continues to sell municipal land which could be used for both social and affordable housing, to the highest bidder,” he said.
Adding to the controversy, the auction was open to foreign nationals, both individuals and companies. ANC MP Imraan Subrathie warned this would place South African buyers at a significant disadvantage.
“Given the strength of various foreign currencies, [this will] totally outprice South African buyers,” he said, cautioning that the move would cause property prices in Cape Town to escalate further, making land and housing “simply unaffordable to the vast majority of citizens”.
ALSO READ: Cape Town affordable housing provider defends evictions amid claims it places profit over people
ANC condemns the DA-led city’s decision
The ANC caucus in the City of Cape Town was unequivocal in its opposition, with Subrathie saying the sale violated the spirit, if not the letter, of the Municipal Financial Management Act.
The Act stipulates that municipal land and buildings cannot be sold if needed for the provision of minimum basic services.
Subrathie argued the DA was exploiting a narrow interpretation of the law. “Cynically, the DA doesn’t believe that housing and human settlements fall within its interpretation of minimum basic services,” he said.
The ANC said it would pursue legislative changes in response, with Ntuli confirming the party had “resolved to meet with the national minister of human settlements to explore the possible declaration of an intergovernmental dispute with the City of Cape Town”.
The caucus also said it would push to amend the Municipal Finance Management Act to explicitly include housing in the definition of basic services.
Ntuli framed the auction in stark political terms ahead of local government elections later this year.
“The DA wants to sell our land – land that can be used for desperately needed housing and land redistribution – to their foreign friends. They are undermining redress and land justice,” he said.
City defends auction as economic development
According to Business Day, the DA-led administration defended the process, with mayoral committee member for economic growth James Vos arguing the auction served the city’s long-term development interests.
“By releasing this site for revitalisation and redevelopment, we are giving the private sector the opportunity to develop a vibrant mixed-use precinct,” Vos said.
He maintained that the city was acting in residents’ interests.
“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,” he added.
READ NEXT: Johannesburg’s Eskom Centre and Sea Point apartments on track for social housing transformation
About the Author
