Cape Town Human Settlement warns residents about housing scam

The City warns local residents for housing scam and encouraged them to be cautious when it comes to housing opportunity and scammers

Representative image of housing scam in Cape Town
Representative image of housing scam in Cape Town

Cape Town: The City warns local residents about the ongoing housing scam. The City encouraged the residents to be cautious when it comes to housing opportunities and urged them to be aware of the scammers.

It is important for the residents and were asked to pay to receive or to buy a subsidy housing opportunity.


Moreover, the city will never ask residents to pay for a government-subsidised housing opportunity. Residents may also report suspicious or illegal activity to the South African Police Service (SAPS) for investigation.

The Member of the Mayoral Committee for Human Settlements Councillor – Carl Pophaim said that there are a few red flags, the residents can look for while approaching for a housing opportunity.

The Housing Scam Red Flags or which the people should be aware of are:

  • Must be asked to pay to register
  • It is an opportunity which is advertised as a ‘RDP house’
  • Should be asked to pay for a Subsidised Housing Opportunity
  • It is applicable if a BNG House has been built within the past eight years
  • If correspondence does not have a City letterhead

Notably, the residents must be familiar with these red flags and should be able to protect themselves from these all.

Housing Scams Red Flags in Cape Town
Housing Scams Red Flags in Cape Town

These types of cases happen often and impact the most desperate and vulnerable residents. The residents are encouraged to report to SAPS and the City of Cape Town, if any have been the victim of housing scam, for the investigation.

Councillor Carl Pophaim encouraged the residents to update their details on the register so that the City can contact them when they qualify for a housing opportunity.

Pophaim mentioned that they were recently made aware of an apparent scam involving the Maroela Housing Project in Kraaifontein.


Reportedly, the current phase of the project consists of Breaking New Ground (BNG) homes for people who earn up to R3500 per month. They have also introduced planned Gap units for those who earn between R3501 and R22,000 per month. The project is progressing well as planned and is expected to be complete by mid-2025.

Councillor Pophaim expressed that it is heartbreaking to hear that residents were promised housing opportunities that cannot and will not be kept. He added, “There is only one way to lawfully receive a subsidy housing opportunity and that is to qualify after registering on the Housing Needs Register.”

He mentioned that the register needs to be protected, updated, and audited. This is necessary to prevent queue-jumping and to provide opportunities in a fair and ordered manner.