May 11 2026 20:45
CAPE TOWN, SOUTH AFRICA
The Department of Public Works and Infrastructure has chosen 1,348 non-essential state properties for disposal, 801 of which have been approved for the next steps of its current vetting process. The department is deciding which buildings can be used and for which purposes, including the formation of a state-owned property fund.
The properties which are being disposed of are mainly residential assets including houses and vacant residential land and are located across all provinces in the country.
The disposal process for the 801 properties is currently at the physical verification stage, the department said. The department is operating this process under its minister, Dean Macpherson.
This phase aims to confirm the existence and condition of each property, determine their vesting status, and prepare them for referral to the Provincial State Land Vesting and Disposal Committee (PSLVDC) for recommendations on disposal, the department said.
Macpherson, said that after completing these steps, the regional offices will conduct feasibility studies and property valuations on the buildings and land.
The properties will be submitted to the Minister for approval, which will allow the Supply Chain Management (SCM) processes to begin, including advertising the properties for sale.
No properties have been transferred to municipalities or private owners in the past two financial years, as the disposal programme is still in the preparatory and approval stages.
The 801 properties cleared for disposal must undergo the following steps:
- Feasibility studies and condition assessments
- Market valuations
- Ratification by the Land Affairs Board (LAB)
- Approval from the National Treasury (when applicable)
- Ministerial concurrence
“The Department is currently facilitating the transfer of certain properties to other government departments in terms of Section 42 of the Public Finance Management Act (PFMA),” Macpherson said.
These transfers include:
- Properties designated for transfer to the Border Management Authority (BMA) to enhance border control infrastructure.
- Properties assigned for transfer to various provincial governments, such as 23 land parcels to the Northern Cape and 8 land parcels to the Western Cape, to promote human settlements and improve overall service delivery objectives.
Rightsizing of the state’s real estate portfolio will reduce and consolidate the R6bn in wasteful private leases, bringing this money back into state coffers and investing in its own asset portfolio.
President Cyril Ramaphosa announced the new state property company during the State of the Nation Address in February 2026.
“This year, we will begin the work to establish a professional State Property Company to transform the 88,000 buildings and 5-million hectares of land owned by the state into professionally managed engines of growth and development,” he said.
The government is by far the biggest owner of real estate in South Africa, but years of neglect and graft have led to many buildings falling into disrepair or being taken over by illegal occupants.
247@propertyflash.co.za
