Stellenbosch stops talking, starts delivering: affordable housing part of new developments

IOL News

30-07-2025

Construction of the Newinbosch Neighbourhood Estate development in 2025. The Stellenbosch Municipal Planning Tribunal approved the land-use application for the Newinbosch Neighbourhood Estate development on the condition that it include inclusionary housing. In terms of an agreement between the municipality and the developer, 144 inclusionary housing units (11% of the entire development) were developed.
Image: Sebastian Machill (2025)
Over 30 years into democracy, some municipalities are finally moving in the right direction.
In a "significant step" toward redressing spatial inequality in South Africa, 140 affordable units have been built in a new estate exclusive development in Stellenbosch. This is part of Stellenbosch municiaplity's inclusionary zoning policy.
And while 140 units may not seem like a lot in a country grappling with an affordable housing crisis, and where informal developments are outgrowing formal developments exponentially, the policy can serve as a blueprint for the rest of the country on how to transform spaces.
"Stellenbosch's policy isn't just a local breakthrough; it's a blueprint for the Western Cape and the country," says Helen Rourke, programme director at Development Action Group. "In a country where spatial and income divides still define daily life, this is how real spatial transformation takes shape," she said.
The policy requires private developers that are planning to build a new residential or mixed-use development of 20 units or more in Stellenbosch, Klapmuts or Franschhoek to include 20% inclusionary housing.
In the catalytic area of the Adam Tas Corridor, a spatial overlay zone provides for developers to unlock development rights if they contribute 30% inclusionary housing.
Stellenbosch municipality is only the second municipality in South Africa to adopt an Inclusionary Zoning Policy and, since its inception June 2023, over 900 new inclusionary housing unit applications have been approved.
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The requirements and the goal
There have been discussions about inclusionary housing policies for almost 20 years, since the early 2000s, and these discussions have often been shut down by resistance from property developers and owners, said Associate Professor Ivan Turok (University of Free State).
"This makes Stellenbosch's policy development and initial implementation all the more significant - as this is only the second municipality in the country to adopt an inclusionary housing policy."
Rourke explained that the overarching goal of inclusionary zoning is to ensure social inclusion and counteract the legacy of spatial segregation that continues to define South African cities.
Fo many South Africans, home is still on the outskirts and far from major economic opportinities - designed that way during apartheid South Africa.
'Stellenbosch has stepped up where it matters most, showing that bold municipal leadership and political support for innovative land policy tools can help tackle South Africa's deep inequalities head-on," says Rourke.
Turok echoed the praise for Stellenbosch Municipality's political leadership.
"The ability for political leaders to be honest about the challenges we face to address spatial inequality and be clear about a desire for change is a massive starting point," he said.
Political leaders often back off at the first sign of resistance to inclusionary housing, he said, so "the willingness of Stellenbosch's political leadership not to cave into political repercussions and engage in the difficult negotiations and discussions with entrenched interests like property developers, property owners and the middle class is vitally important".
Prof Turok added that the link between political will and technical expertise on inclusionary housing (as the case was in Stellenbosch) was vital to take inclusionary housing 'beyond a hypothetical idea into actual delivery'.
Rourke and Turok were speaking at a high-level dialogue on the municipality's pioneering Inclusionary Zoning Policy, hosted by DAG in partnership with Stellenbosch Municipality and as part of the National Land Value Capture (LVC) Programme.
As part of the event, DAG and Stellenbosch Municipality officially launched a new publication co-authored by Chantel Hauptfleisch, senior spatial planner at Stellenbosch Municipality, and Claudia Hitzeroth, technical eonsultant, entitled 'Stellenbosch's Inclusionary Zoning Policy: Lessons and Insights on Policy Development.'
Triple Bind
Many South African cities face a 'triple bind' of growing urbanisation pressures, budgetary constraints and increasingly exclusionary property markets, says Rourke.
These conditions make the existing spatial segregation even worse, as it becomes financially more difficult for government to deliver affordable and adequate housing in high-value locations within the parameters of existing funding mechanisms.
The majority of state-subsidised housing has therefore been constructed on the urban periphery, reinforcing inefficient urban structures and exacerbating socio-economic inequalities.
So, while spatial transformation has been a central policy objective since democracy, the spatial form of South African cities remains largely unchanged since Apartheid.
A good example
The Stellenbosch Inclusionary Zoning Policy (2023) is a shining example of what can be achieved when all players come together to make a change, says Rourke.
There are currently additional applications under review.
Stellenbosch executive mayor Jeremy Fasser, says that through this policy, "we are attempting to rewrite the narrative on affordable and dignified housing".
"We want to show that access to housing can be integrated and future-focused and that local government can lead the way in creating replicable models for other communities across South Africa.
"This is about transforming policy into action and then action into impact.
"Our Inclusionary Zoning Policy is already yielding results. Since its adoption in 2023, more than 900 new inclusionary housing units have been approved, with many more in the pipeline.'
To date 144 units have been built - all in the the Newinbosch Neighbourhood Estate development - taking "a significant step" toward redressing spatial inequality.
Image: Sebastian Machill
Diving deeper
In the Stellenbosch areas inclusionary zoning requirements are triggered by a land development application for additional development rights, which means the requirement does not apply to existing rights.
Within spatially targeted catalytic areas, such as the Adam Tas Corridor, the Inclusionary Zoning Policy requires private developers that are planning to build a residential or mixed-use development of 20 units or more to include 30% inclusionary housing.
This is because within the Adam Tas Corridor the municipality is undertaking various catalytic activities that create significant value in land, such as offering extensive additional development rights and intensive infrastructure investment.
An Adam Tas Corridor Overlay Zone allows developers to unlock these significant additional development rights without undergoing lengthy land-use development applications under the condition that 30% of their development constitutes inclusionary housing units.
Who will benefit
What constitutes an inclusionary housing unit, also referred to as an affordable housing unit, is carefully stipulated via various metrics that are adjusted frequently to be market sensitive, according to the publication.
The policy at present stipulates that beneficiaries should be employed households with a stable income (excluding students), with preference for Stellenbosch residents, key workers, vulnerable groups, first-time homeowners, and female-headed households.
Beneficiaries should have a monthly household income of between R3 500 – R22 000 (2022 FSC rates updated annually) and the sales cost of an affordable housing unit should fall between R300 000 – R1.2 million. Proportional allocation across the affordability range is encouraged and units must stay affordable for at least 30 years. .