R11-billion unfinished Montrose megacity development residential ghost town

Once-touted Montrose megacity development large scale solution The state’s housing backlog has been suspended since January 2024.

According to the Gauteng Department of Human Settlements (GDHS), the project was canceled following the termination of the contract with Gauteng. SCM developmentan appointed turnkey developer. The ministry cited “financial difficulties leading to liquidity.” The government planned to build 5,600 homes in the first phase of the project.

read more: Johannesburg Social Housing Corporation struggles to reduce staggering waiting lists

When asked by Daily Maverick about the total amount spent on both stages of development so far, GDHS spokesperson Terry-Ann van Eck, on behalf of MEC Tasneem Motara, declined to provide a figure, but reports say R11 billion has been spent.

“As the development was in its first stage at the time of closure, detailed financial information regarding expenditures cannot be disclosed without a formal application under the Promotion of Access to Information Act (PAIA).”

read more: Joburg’s dark heart

In response to further questions from Daily Maverick about whether there are any plans to repair or complete the housing units, the ministry said: “The Ministry is actively engaged in negotiations with the landowner to purchase the land outright. This acquisition will enable the Ministry to take over and continue the development. If the acquisition is successful, a procurement process will begin and a new developer will be appointed to restart the project and complete it as originally planned.”

Van Eck also said: “We have received guidance from the State Treasury regarding the security of the premises. A professional security company has now been appointed to the premises to prevent further illegal activities such as vandalism and unauthorized access.”