Tenanting is set to begin in November on the 330-unit first phase of the Goodwood social housing megaproject, which will, once completed, provide affordable rental opportunities to more than 1 000 Cape Town residents and their families.

All 1 000 units will be completed by mid-2024.

The R575-million project is being built near the Goodwood railway station. The station is situated along the Voortrekker Road corridor, which links Cape Town’s main central business district with northern suburb Bellville. 

The development targets families with a combined monthly income of below R22 000.

The project, initiated by the Passenger Rail Agency of South Africa’s (PRASA’s) investment vehicle, Intersite, is a joint partnership between the rail agency, the City of Cape Town, the Social Housing Regulatory Authority, DCI Community Housing Services and others.

“This project is a demonstration of the meaningful role our landholding plays in municipalities’ ability to meet their goals to build affordable homes, while also generating nonfare revenue for PRASA’s long-term financial sustainability,” says the rail agency. 

PRASA is also involved in the construction of mixed-used student accommodation at the Cape Town Station.

PRASA has 25% share in the R1.2-billion project, along with Eris Property Group.

“[This project] is an example of how we are repositioning our railway stations to be places where students, or other people, can work, live and play,” says PRASA.

Intersite is also co-investing with Urbane Living in a new development in Braamfontein, Johannesburg.

The Rynx will see the conversion of PRASA’s existing Tippet building offices into 189 residential units at an estimated cost of R67-million over a period of 18 months. 

Construction is expected to start in October.

Intersite says it is finalising a further 20 developments for student and gap housing across its rail network. 

Cape Town Social Housing
The City of Cape Town notes that tenanting has also started at its 204-unit Maitland Mews social housing development in this inner-city feeder suburb.

“In neighbouring Parow, we have also just released land parcels for the development of 630 social housing units, while 314 units have been completed at the Bothasig Gardens development. 

“The city is further playing an enabling role in the Western Cape government’s Founder’s Garden precinct in the central business district, and the Conradie Park development in the inner-city feeder suburb of Pinelands, where 432 social housing units have been constructed in the first phase.”

Cape Town promises that there is a “lot more in the pipeline”.

“In total, over 2 000 social housing units reached critical approval stages in the first year of our Priority Programme for accelerated land release. 

“We have further passed guidelines for the discounting of public land to maximise affordable housing units and ensure project viability on the land we release,” says Mayor Geordin Hill-Lewis.

What is Social Housing?
- It is managed by accredited social housing institutions (SHIs).
- SHIs are solely dependent on rental income. They receive no operational grants. They are able to service their debt finance through rental income. 
- As with any rental contract, tenants formally enter into lease agreements. The landlord is the SHI.
- If tenants do not adhere to their lease agreements, the responsible SHI will follow the necessary legal process. Tenants must, therefore, pay to stay. 
- Before potential beneficiaries can apply for social housing, they are required to register on the city's Housing Needs Register.
- Projects are developed on well-located, accessible land in and near urban centres.
- It is not low-income subsidised government housing, such as ‘RDP’ housing, and also not City Council Rental Units.
- It is managed with 24-hour security and access control.
- Social housing should add value to vacant pieces of land.