The Newcastle Hospital Street Social Housing Project has surpassed the halfway mark, having achieved over 60% completion more than five years since its official launch in October 2020.
At its inception, the then-Newcastle Mayor, Dr Mahlaba, emphasised the project’s potential to catalyse economic development and bolster rates and taxes revenue in Newcastle, with a budget exceeding R387 million.
Moreover, the former mayor highlighted that the project’s core objective was to develop more than 1,000 social housing units, signifying a major leap in urban development.
However, as of May 2025, the project stands at 60% completion, with construction still in progress, as confirmed by Newcastle Municipality Mayor, Cllr Dube, in a recent statement during the Mayoral Road Shows. Although he did not provide an exhaustive update on the current status, Mayor Dube attributed some of the delays to recent unfavourable weather conditions.
Delays have been a recurring theme for this initiative. A notable instance occurred in February 2025 when subcontractors temporarily ceased operations to demand higher compensation.
The matter was amicably settled through negotiations mediated by the Implementing Agent (IA). Furthermore, the construction schedule has been adjusted due to the presence of a wetland buffer zone on the site, which mandates strict compliance with the Environmental Management Plan. The project is slated for completion in March 2026, which will be over five years from its initial launch.
In March 2025, the MEC for Public Works, Martin Meyer, visited the site and, while acknowledging the delays, assured that departmental support would be provided to resolve the remaining challenges.
It should be noted that the Hospital Street project is part of a portfolio of housing initiatives in Newcastle, including the Johnston, Blaaubosch, and Cavan (JBC) Housing Development (Phases 1–3) with over 11,000 units and the N11 Community Residential Unit (CRU) project. These projects collectively aim to address a housing backlog of approximately 67,000 units and a waiting list of 34,866 in the municipality.
The JBC Housing Development, structured as an Integrated Residential Development Project (IRDP), focuses on delivering serviced sites for the affordable market in peri-urban areas, which are often underserved in terms of basic services and public facilities.
This initiative not only addresses housing needs but also promotes integrated development, potentially incorporating commercial and community facilities to stimulate local economic growth. The N11 CRU project, with a budget of R268,464,148.06 and which is currently 75%.
As the housing projects in Newcastle that are meant to enhance development continue to lag, what are your thoughts on the above? Share your views in the comment section below.
12 Responses
Interesting narrative presented on the delays. The question that must asked is at inception what was the planned completion date and cost ?
It boggles the mind that a relatively small projects of this nature should take more than 8.3 years to complete !!
I fully agree with you. Weather (really)!
Is this something to be proud about?Way over schedule and no doubt with escalating costs. The road alongside the flats is in an atrocious state and nothing is being done about it.We have so many issues with our sewer system but pipes haven’t been upgraded to handle the additional load. A disaster in the making.
Unfavourable weather conditions being stated as one of the reasons for the project delay could be true and subjectively debatable,there was never heavy rainfalls for more than a month. Diving deeper,we can look at the procurement processing of the whole project before looking into its Inception. How long was the project scheduled for? Does it make sense for a commercial property to take +5yrs to be compeleted? No!!
Construction politics are something else but this? Pure mediocre. Between the previous Mayor and the current Mayor, someone was/ is not doing their job.
How do I apply to be on the waiting list.
This is not about the town or its people. It’s politics. Read between the lines and check the history.
Busi Z
I so request that they hasten in replacing our concrete wall which is falling voraciously due their deep excavation of their foundation.Im pleading as more damage might happen Hearken to my.call please.
Why is modern technology not been used eg products that save on time,precast cast hollowcore flooring system & precast stairs see examples of social housing projects in w cape
The Hospital Street housing project is built on a wetland which was declared a Flood plane. The marshy area was unsuitable for any kind of development. How the heck the department of Human settlement reaches a decision to develop it for housing? The shoddy workmanship and shabby finishes is just a big waste of money. Sewer is flowing on the roadside so what extra provision has been made to accommodate the current development. The road is also a Bloody disaster. Come on Newcastle municipality WAKE UP early and fix the mess.
I worked for the project for 3 years and now we are waiting to still get paid we havent been paid 2 months of wages and till now haven’t got any money or word from them
How do I apply to be on the waiting list?
Completions are still to be seen on several of these projects.
It would be helpful to know what the original approved budget was, Same gos for the “Sports Acedemy” and stadium at the old casino premises in the Lower Drakensberg.
While a new mini steel stadium structure has been built, the existing rugby and athletic fields appear to remain largely neglected. Many of us have struggled to understand the need for an entirely new field when the existing facilities could have been upgraded and maintained.
Unfortunately, this pattern — shifting budgets, questionable priorities, the appointment of seemingly incompetent contractors, and a lack of accountability — has become all too familiar. It feels symptomatic of the broader governance challenges we face in South Africa today.