Bids Sought for Erf 555 in Khayelitsha

The City of Cape Town’s Human Settlements Directorate invites all qualifying bidders to participate in the auction of Erf 555 in Khayelitsha for GAP housing opportunities. The auction is scheduled to take place on Thursday, 29 May 2025.

This auction forms part of the City’s Human Settlements commitment to advancing affordable housing through its GAP housing programme.

Prospective bidders are invited to participate in the auction. The property is intended for GAP housing, which targets middle-income households that do not qualify for fully subsidised housing.

In order to qualify for participation in the auction, interested parties must meet the following criteria:

• The purchaser must be a South African citizen with a valid ID; or permanent resident with a valid permit;
• The purchaser must be over 18 (eighteen) years old and competent to legally contract;
• The purchaser must be a First Time Home Buyer, meaning that the purchaser may not be the owner of property.
• The purchaser must qualify in terms of the financial requirements of the City Council in respect of affordable GAP housing, such requirements being that the purchaser must earn a monthly gross salary of between R13 000,00 (Thirteen thousand Rand) and R22 000,00 (Twenty two thousand Rand);
• May not have received a government housing subsidy before;
• No informal dwellings may be constructed on the property;
• The property may only be used for the erection of a residential dwelling;
• The property may be sold at any time after transfer of registration in the name of the purchaser, on condition that it was improved by the erection of a residential dwelling (no informal dwellings);
• The property may not be sold within five years of the date of purchase, if it was not developed by the building of a residential dwelling; and
• Should the purchaser wish to sell the undeveloped property after five years of date of signature of this agreement, the City Council will have the first right of refusal to purchase the property at the same price as the purchase price. Should the Council elect not to exercise this first right of refusal, the purchaser may sell the property to any prospective buyer.
• In the event of the subject property ceasing to be used for the purpose originally intended, reversionary rights are triggered. In addition to these reversionary rights or as an alternative to them, the seller reserves the right to demand compensation equal to the difference between the actual purchase price and the current fair market value of the property.

For more information: https://www.property.highstreetauctions.com/read-more-auctions-high-street-auctions.php?tc=db2c0c59464926890d57e28825ff1b9c&kw=5fa3f0eca92cfea794ce00ff0e45e81b

For more information on housing opportunities and how to qualify: capetown.gov.za/Family and home/residential-property-and-houses/city-housing-opportunities/housing-opportunities