GOOD Statement by Brett Herron,
GOOD Secretary-General & City of Cape Town Mayoral Candidate
21 August 2026
A prime chunk of Milnerton real estate acquired nine years ago by the City of Cape Town specifically to alleviate overcrowding in Dunoon is now being sold to a private developer for a fat profit without the City having built a single home.
Annandale Farm cost the City R184.7m in 2017. It was paid for by redirecting funding from the planned extension of the Wolwerivier Temporary Relocation Area specifically to relieve severe congestion in Dunoon.
While Dunoon waited for relief, the land sat on the City’s books, appreciating in value.
Now the City’s commitment to Dunoon has quietly disappeared, with the City about to sell the land to a private developer for a R71m profit.
Somehow, in the DA’s hands, land acquired specifically to solve a housing crisis became a City-held investment property, gaining value for years at the expense of the Dunoon community.
The City’s tender documents valued the land at R256m in September 2025. The tender does not provide for the development of a single subsidised (BNG/RDP) housing unit, which is the type of housing the people of Dunoon need.
Instead, the tender talks about “affordable” housing, bonded and rental units aimed at moderate-income families, which are totally unaffordable to most Dunoon residents.
Even the affordable housing “commitment” is not quite a commitment: It counts for just 10 of the tender’s 100 evaluation points, which means a bidder can score zero for affordable housing but still win the tender outright.
Serious questions remain about whether the funds diverted to acquire Annandale Farm were wholly or partially derived from Urban Settlements Development Grants (USDGs). These grants are intended to house the poor, not to fund real estate speculation by the City.
GOOD has lodged an application under the Promotion of Access to Information Act to force the City to disclose the origin of the funding, and any conditions attached thereto. If USDG funds were used, the City must show how Annandale’s disposal complies with USDG conditions.
As Cape Town’s housing shortage has climbed above 680 000 families, the City of Cape Town has made an art form of big announcements about land releases, land acquisitions, and alleged future housing plans – while building fewer and fewer houses.
Annandale Farm illustrates the true value of these announcements.
Media Enquiries: media@forgood.org.za