Three new ‘cities’ pumping R45 billion into South Africa’s financial capital
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16-10-2025
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Business Tech
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Johannesburg is seeing billions spent on new residential developments, with the city looking to address a shortage of affordable housing units.
Despite serious issues facing the city, including poor governance and major infrastructure failures, Johannesburg remains the nation’s largest and richest city.
The majority of South Africa’s largest companies are headquartered in Johannesburg, which is seen as the nation’s financial powerhouse.
Due to its financial might, the city sees an influx of workers from other provinces and neighbouring nations.
The city has housing shortages reaching the thousands, with many people in the city forced to live on the streets.
Several developments in the nation are thus set to address the nation’s shortage of affordable housing, which will also give access to basic services.
The city’s development pipeline includes public and private investments, including:
- Southern Farms
- Bankenveld District City
- Riverside View
Southern Farms and Riverside View are being led by the public sector, while the Bankenveld District City is a joint venture between JSE-listed Calgro M3 and the Eris Property Group.
The developments are set to add thousands of affordable housing units to address shortages in some of the city’s most populated areas.
Southern Farms
Launched in May 2025, construction on the R27 billion Southern Farms Development has started, with bulk and link infrastructure installed for Phase 1.
The project is set to deliver an estimated 43,000 housing units, including several supporting land uses such as retail, commercial, industrial, parks and social amenities.
The development will encompass several distinct precincts across areas such as Diepkloof, Freedom Park, Eldorado Park and Naturena.
The development will have seven local neighbourhood parks with play facilities, six multi-purpose sports courts, a local library, two home affairs offices, and more.
It will also have clinics, schools, taxi ranks, roads and essential infrastructure to ensure a connected community.
Johannesburg Mayor Dada Morero previously said the project would address economic issues and challenges and be a source of pride for the city.
Nomoya Mnisi, MMC for Economic Development, urged locals to capitalise on the job and business opportunities during construction and beyond.
Potential residents have, however, been warned about the strict compliance protocols, with no one receiving a house unless they are on the verified housing database.
Despite having a multi-billion-dollar budget for the development, the city still called on the community to protect against land invasion and illicit activity.
Bankenveld District City
In the private sector space, JSE-listed Calgro M3 has started work on the R18 billion Bankenveld District City.
The development will add 20,000 housing units between Sandton and Midrand. The development is accessible via the M1 and N3 highways and the Marlboro Gautrain station.
On top of the affordable housing units, the development will offer retail, lifestyle and amenities.
Calgro M3 will provide housing units, while Eris focuses on industrial and commercial development.
In its latest financial results, Calgro M3 said that it was negotiating with the public sector to finalise the city’s infrastructure agreement.
These discussions and agreements with the public sector will allow the group to cater to the lower LSM (Living Standards Measure) housing market once the development is concluded.
Riverside View
While the Southern Farms and Bankenveld District City developments are very early in their development, the Riverside View Social Housing Development in Fourways is nearing completion.
The first three phases of the development have already been opened, with city officials breaking ground on phase 4 in July of this year.
Phases 1 and 2 were completed in September 2023, while Phase 3, launched in 2024, added just under 200 units.
Phase 4 of the development will add around 750 units and will be funded by R53 million from the city and R291 million from the Social Housing Regulatory Authority’s Consolidated Capital Grant.
Developers Valumax said that the development is set to offer a mix of affordable and mid-income housing.
The development is situated directly north of the popular estate for the rich, Steyn City, and will offer close to 11,000 units when completed.
Riverside View other amenities include primary and secondary schools, community facilities, a retail centre, filling stations and community parks.
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