By Johnathan Paoli
Public Works and Infrastructure Minister Dean Macpherson has unveiled an ambitious plan to put dormant assets to productive use, by leasing state-owned properties to private investors.
The South African government currently holds an extensive portfolio of unused properties, amounting to 1259 vacant land parcels, 207 unoccupied houses and 830 abandoned farms.
“Those properties belong to the public and we need to start getting public good out of them. We want to test the market to see how we can work in conjunction with development in some commercial aspects to develop those properties so that we can start getting some money and operate it as a property portfolio, generate money, jobs and an annuity income for the state,” Macpherson said.
These properties, which cost taxpayers R65 million in rates and taxes last year alone, represent a significant untapped resource that could be leveraged to address the country’s pressing homelessness crisis.
While much of the government’s focus has been on attracting private sector investment, advocates argue that a significant portion of these properties could be repurposed to provide housing for South Africa’s growing homeless population.
With thousands of individuals and families struggling to find stable shelter, these vacant properties could serve as a foundation for much-needed affordable housing projects.
Macpherson has acknowledged the urgent need to make better use of these properties and noted that his department has already placed 31 properties on the open market, with plans to release an additional 30 in the next financial year.
While these measures are expected to generate R10 billion in private sector investment and create 165,000 jobs, there remains significant public interest in ensuring that a portion of these properties are allocated for low-income housing.
According to Macpherson, the government’s failure to utilise these properties effectively has resulted in an estimated revenue loss of R83 million in the 2024/2025 financial year.
By leasing them out, the state aims to generate R200 million annually, reducing the financial burden on taxpayers while simultaneously fostering economic growth.
“Just from the 31 properties already available for lease, we estimate that we’re going to generate R10 billion worth of private sector investment, with 40,000 jobs being created in the construction industry alone,” Macpherson said.
Civil society groups have called for a more balanced approach that includes a dedicated programme to convert a portion of these properties into affordable housing developments.
One of the primary challenges in re-purposing these properties for housing is the risk of illegal occupation and land invasions, which Macpherson cited as a reason for withholding detailed location data.
However, structured and transparent allocation processes, coupled with strong security measures, could mitigate these risks while ensuring that the properties are used effectively.
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