Unlocking Cape Town’s economic potential via municipal land release

OPINION PIECE BY ALDERMAN JAMES VOS, THE CITY’S MAYORAL COMMITTEE MEMBER FOR ECONOMIC GROWTH

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

Too often, municipal property sits idle, costing money to maintain while generating little public benefit, or even contributing to urban blight. As someone who has championed this approach for years, I am a strong advocate for a simple principle: municipalities should actively manage their land portfolios to unlock economic, social, and spatial value for the city.

Over the past few years, my 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. 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 our work with the Human Settlements Department, where we have 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.

This approach is about more than just one site. In February, the City will launch an extraordinary opportunity for the private sector to invest in 50 sites across Cape Town, including residential, commercial, industrial, and mixed-use parcels. Each site has been packaged to attract capable private-sector partners ready to invest and deliver tangible benefits for communities and the broader economy. For full transparency, bidders will have the opportunity compete via a public auction. 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.

While some critics have questioned our approach, the fact is that municipal land release is a driver of jobs, investment, housing delivery, and revenue that can be reinvested into City services. Government assets should work for the people, not sit idle.

In the 2024/25 financial year alone, our 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 is now bringing in R334m in annual lease revenue. In this way, the City 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, what drives us is clear: we 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.