A fresh legal and constitutional battle has erupted over the City of Cape Town’s decision to press ahead with the auction of about 50 municipal properties, including the iconic Good Hope Centre, despite a call from the South African Human Rights Commission (SAHRC) for an urgent postponement.
The Western Cape high court on Tuesday dismissed attempts to block the release of the properties for private sector investment, clearing the way for the competitive public auction to proceed.
The city says the initiative aims to unlock economic and social value across the metro, with proceeds earmarked for service delivery and infrastructure.
But the proposed disposal of the Good Hope Centre, widely regarded as a culturally and historically significant public venue, has sparked public outrage and intensified scrutiny of the City’s land release programme.
Court clears the way
Alderman James Vos, mayoral committee member for economic growth, welcomed the high court’s dismissal of several applications seeking to interdict the land release.
“We’ve said from the start that our land release process is lawful and transparent, and we are glad that the court has seen through these meritless applications. A total of four have now either been struck off the roll or dismissed with costs,” he said.
Vos added that some of those opposing the auction had made “baseless demands”, including that a portion of the proceeds be paid into private bank accounts.
“We firmly believe that the city’s land portfolio, rather than sit idle, must drive economic growth across Cape Town. These properties are not being lost to Capetonians; instead, they will now realise their full economic and social potential through private investment to the benefit of residents,” he said.
According to the city, all properties identified for auction have been assessed and confirmed as not required for municipal purposes. Revenue generated from the sale or long-term lease will be reinvested into service delivery.
The Good Hope Centre precinct, the headline asset in this round, is earmarked for major revitalisation through private sector investment, with plans for event hosting and mixed-use development that the city says limited public funding could not achieve.
SAHRC raises constitutional concerns
The SAHRC, however, has formally requested that the city delay the auction, warning that the process may not meet constitutional and public participation standards in a post-pandemic socio-economic context.
The commission’s intervention followed an urgent meeting between commissioner Philile Ntuli and Cape Town mayor Geordin Hill-Lewis.
This case goes beyond a single auction. It touches on broader issues of accountability, public participation, social housing obligations and the proper application of the MFMA.
— Marius Fransman, president of the People’s Movement for Change
In a statement, the commission expressed concern that the city is relying on public participation processes and in-principle approvals conducted as far back as 2019, 2021 and 2022.
“In a post-pandemic socio-economic landscape, the commission views these processes as no longer temporally relevant,” it said.
While the mayor reportedly indicated that portions of the land are intended for social or affordable housing, the commission noted that no binding conditions of sale would compel developers to deliver on these outcomes.
“The commission is therefore unsure how the city’s stated intentions will be realised without enforceable legal conditions,” it said.
Arguing that the balance of convenience favours the public interest, the SAHRC has proposed a voluntary postponement to allow for a comprehensive review of the disposal process and to resolve the dispute through cooperative governance rather than litigation. It has requested a written response from the mayor and warned it will take further steps to discharge its constitutional mandate if meaningful engagement does not follow.
Broad coalition of opposition
The auction list spans residential sites in Kraaifontein, Westridge, Atlantis, Durbanville, Goodwood, Eerste River, Coniston Park, Bridgetown, Athlone, Maitland and Vredehoek; commercial properties in the Foreshore, City Centre, Mitchells Plain, Montague Gardens, Parow, Blue Downs, Century City, Bellville and Goodwood; and industrial land in Atlantis, Epping, Khayelitsha and Kuils River.
Opposition to the land release has drawn in political and civil society formations. Marius Fransman, president of the People’s Movement for Change, attended proceedings at the Western Cape high court in support of an urgent application challenging the proposed disposal of about 28.2 hectares of public land.
The application, outlined by the Pan Khoi-San Sovereign Nation Advocacy and Litigation team, raises questions around heritage protection, public participation, social housing obligations and compliance with the Municipal Finance Management Act.
“This case goes beyond a single auction. It touches on broader issues of accountability, public participation, social housing obligations and the proper application of the MFMA,” Fransman said.
“As a movement grounded in family, community and opportunity, we believe that public land must serve the people, particularly in a province facing deep housing challenges and spatial inequality. Decisions of this magnitude must withstand the highest standards of legality and public scrutiny.”
With the court having dismissed the latest legal challenges, the auction is set to proceed — but the political and constitutional contest over Cape Town’s public land is far from over.
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