South Africa reviews over 6,200 state-owned homes for officials

Macpherson has instructed Director-General Sifiso Mdakane to complete the investigation and submit a detailed report within 30 days.

South Africa's Minister of Public Works and Infrastructure, Dean Macpherson, has ordered a comprehensive investigation into more than 6,200 state-owned residential properties allocated to government departments and occupied by public officials, as the government considers selling properties that are no longer needed. The review is expected to determine whether the homes continue to serve a legitimate operational purpose, whether allocation rules have been followed and which properties should remain in state ownership or be disposed of.

Probe to examine occupancy and property use

Macpherson has instructed Director-General Sifiso Mdakane to complete the investigation and submit a detailed report within 30 days. According to the Department of Public Works and Infrastructure, the report must examine all 3,626 state-owned residential properties in KwaZulu-Natal, where the largest share of the government's housing portfolio is located. It must identify the department responsible for each property, its intended operational purpose, the status of its current occupants and whether the property should be retained, repurposed or sold.

The government's residential property portfolio also includes 566 homes in the Western Cape and 407 in Gauteng. The department said approximately R39.6 million was spent on day-to-day maintenance during the 2025/26 financial year, although expenditure records currently cover only 108 of the 6,238 properties, highlighting the need for a broader review.

Investigation to assess compliance and housing benefits

The Director-General has also been instructed to conduct a separate assessment of homes occupied by officials from the Department of Public Works and Infrastructure to determine whether the same allocation criteria, governance rules, rental arrangements and tax requirements applied to other departments have been followed without preferential treatment. The investigation will examine compliance with legislation including the Government Immovable Asset Management Act, the Public Finance Management Act and relevant National Treasury regulations.

Officials will also review whether rentals charged for state-owned homes reflect market rates, whether approvals were obtained where exceptions were granted, whether occupants qualify for official accommodation under their employment conditions and whether the correct fringe benefit tax has been applied. The report will also determine whether government departments have returned properties that are no longer needed and identify surplus assets that could be redeveloped, repurposed or sold.

Government signals plan to reduce property portfolio

Macpherson said he does not believe the State should continue owning more than 6,000 residential properties for government officials, particularly when many employees already receive housing allowances or other housing-related benefits as part of their remuneration. He said state-owned homes should only be retained where there is a clear operational need. Properties that no longer support government functions should be disposed of through a transparent and legally compliant process.

According to the Minister, reducing the size of the government's residential property portfolio would lower maintenance costs, generate additional revenue and allow public resources to be redirected towards infrastructure and assets that directly improve service delivery.