The City of Cape Town proceeded with a major land auction on Thursday, 26 February, after four separate applications to the High Court seeking to halt the sale were dismissed with costs, including one court challenge on Tuesday.

Cape Town Mayor Geordin Hill-Lewis confirmed that the auction went ahead as planned, raising hundreds of millions of rand that the City says will be reinvested into essential infrastructure projects.

The Good Hope Centre was among the properties sold off for a reported R135 million. Approximately 50 other parcels of land, including residential, commercial and industrial, were auctioned.

According to Hill-Lewis, the funds generated will be used primarily in lower-income communities for infrastructure upgrades, including pipe replacements, road improvements, park upgrades and other public works.

He said the sale of under-utilised municipal land would also enable new housing developments, helping to increase housing supply and ease property price pressures.

The mayor argued that disposing of what he described as “dead assets” would revitalise neglected properties and attract investment, creating jobs and supporting economic growth.

Hill-Lewis criticised attempts to block the auction, describing them as politically motivated and noting that the City regularly conducts similar land sales.

He said the disagreement reflected differing views on the role of government, arguing that municipalities should facilitate investment rather than retain ownership of underperforming assets.

Opposition parties raise concerns over public land disposal

The sale, particularly that of the Good Hope Centre, has drawn strong criticism from opposition parties, including the GOOD Party and the ANC, who argue that the City is disposing of strategic public assets without adequately considering long-term social and heritage impacts.

GOOD Party councillor Suzette Little questioned whether the reported R135 million sale price of the Good Hope Centre represents value for money, noting that recent publicly funded upgrades and future budget allocations linked to the site raise concerns about financial prudence.

Little said the Good Hope Centre is a recognised heritage landmark and an important part of Cape Town’s architectural and cultural identity. She argued that public submissions and heritage concerns raised during consultation processes appear to have been overlooked, adding that heritage status carries obligations for careful assessment, consultation and preservation.

She further highlighted the broader social context, pointing to a housing waiting list exceeding 400,000 residents and questioning whether well-located public land should instead be used to address spatial inequality, affordable housing needs and community development opportunities.

The ANC Caucus has also criticised the auction, condemning the City’s decision to proceed with the sale of 50 well-located parcels of land despite ongoing objections. In a statement, the party argued that municipal land could be used for housing and land redistribution rather than being sold to the highest bidder.

The ANC further raised concerns that foreign individuals and companies were allowed to participate in the auction, warning that stronger foreign currencies could outprice local buyers and contribute to rising property prices in Cape Town, potentially worsening affordability challenges for residents.