Cape Town by-law change unlocks Township Developer potential

• New by-law allows 8 - 12 units per plot without costly rezoning.
• Pre-approved building plans slash costs and speed approvals.
• Unlocks equity, boosts returns, and grows compliant rental stock.

Township Development barriers finally fall

Cape Town’s township micro developers are stepping up to meet the city’s pressing demand for affordable rental housing and, for the first time, the system is helping them. The City of Cape Town’s amendment to its Municipal Planning By-law, gazetted on 8 August and effective 1 September 2025, removes one of the biggest roadblocks: costly, time-consuming rezoning.

Previously, SR1 and SR2 zoned plots could host just three dwellings. Now, landlords can build 8 - 12 units (depending on plot size) simply by submitting building plans, without the rezoning headache. For small-scale developers and landlords, this is a game-changer.

How Landlords and Developers can benefit

• Faster, Cheaper Builds - Skip rezoning, cut professional fees, and move from plan to construction quickly.
• Pre - Approved Designs - The City’s prototypical plans for bachelor and one-bed units meet all compliance standards, fast-tracking approvals.
• Higher Asset Value - Compliant properties not only attract tenants but also unlock refinancing opportunities, boosting long-term returns.
• Support & Training - uMaStandi, TUHF’s township-focused finance arm, offers funding, mentorship, and formal training via the TUHF Programme for Property Entrepreneurship (TPPE), developed with UCT.

Simpler and more affordable

‍With compliance made simpler and more affordable, Cape Town’s township developers can formalise existing projects, scale new builds, and help close the affordable housing gap. For investors, the shift opens opportunities in historically excluded areas, where demand outstrips supply and waiting lists are the norm.

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As uMaStandi’s Western Cape Portfolio Manager, Nomfundo Molemohi, puts it: “The fast-tracking of approvals and reduction in costs represents a powerful shift a win for micro developers, landlords, and the broader housing sector.”

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This is more than policy change; it’s the start of a township property investment surge that blends social impact with strong, sustainable returns.

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