Construction has commenced on the Southern Farms Mega City Project, a landmark R27 billion ($1.5 billion) development in southern Johannesburg, following the site handover at the Bushkoppies Site Camp in May 2025, property broker Ash Müller confirmed.
The initiative responds to mounting concerns over Johannesburg’s deteriorating infrastructure, providing 43,000 homes along with schools, clinics, libraries, sports facilities, and roads, while addressing the city’s chronic housing shortage and fostering economic opportunities for local communities.
Project Scope and Development
Covering 4,000 hectares, Southern Farms will feature seven precincts integrating residential, commercial, and industrial properties. Areas such as Diepkloof, Freedom Park, Eldorado Park, and Naturena are expected to benefit directly from the project’s infrastructure.
The development builds on the Southern Farms Biodiversity Development Project, launched in 2023 to mitigate environmental impact. Developed by Sephahaphaha Trading and Projects, owner Sedima Moseamedi said the project also aims to stimulate local businesses and strengthen the regional economy.
According to property broker Ash Müller, Johannesburg currently faces a housing shortfall of around 1.3 million homes, a gap that could take decades to address at current construction rates. Gauteng officials estimate that Southern Farms will take roughly ten years to complete.
Part of a Broader Megacity Strategy
Southern Farms is part of a wider megacity development initiative across Gauteng, which includes Cullinan, Daggafontein, Goudrand, John Dube, and Stinkwater. Each development is planned as a self-contained, mixed-use urban centre, combining residential, commercial, and industrial spaces along major transport corridors.
Johannesburg’s Infrastructure Challenges
The megacity projects come as Johannesburg faces a deepening infrastructure crisis.
Over nine months, nearly 100,000 electricity outages were reported, including more than 5,000 severe incidents affecting multiple substations. Water losses from leaks, illegal connections, and ageing infrastructure account for about 45% of supply.
In March, President Cyril Ramaphosa publicly criticised the city ahead of several Group of 20 (G20) meetings, including the November summit of heads of state.
Executives from Business for South Africa (B4SA) said they are assessing how to allocate resources to address the city’s infrastructure challenges and political instability, according to Bloomberg.
Johannesburg, home to around five million people, generates approximately 16% of South Africa’s GDP and hosts the main stock exchange along with major companies including Discovery.
The city, often tagged Africa’s wealthiest, is estimated to require R221 billion ($12 billion) to restore essential infrastructure, including power, water, and roads.
Elections and Urban Development
As Johannesburg awaits upcoming local government elections, the opposition DA, led by Helen Zille, aims to regain control from the current ANC-led coalition.
Meanwhile, the Southern Farms Mega City initiative is expected to help ease housing pressures, support local economies, and promote sustainable urban growth, while also serving as a strategic move to bolster confidence in the ANC-led administration governing the city.
