Western Cape Human Settlements MEC Bonginkosi Madikizela says construction on the R3 billion development of the old Conradie Hospital will begin in 2019.
Madikizela says officials will have a soil turning ceremony on 19 January and hand over the site to contractors who will immediately begin breaking ground on the 22-hectare site.
The mixed-use development, situated between Thornton and Pinelands, is known as the "Conradie Better Living Model".
The project will see 3 602 residential units, 1 764 of which will go to low-income families earning less than R15 000 a month.
The other half of the project will be open market.
Madikizela says officials are considering increasing the threshold for the social housing units to R22 000.
He says authorities will have to improve road infrastructure, public transport access and other services in the area.
According to Madikizela, first priority will be given to people living within a 7km radius of the site.
The first units should be up before the end of 2019.
We are looking at a first house coming up towards the end of next year.— Bonginkosi Madikizela, MEC of Human Settlements
It has been a long journey and provincial government is expected to have gotten this far.— Bonginkosi Madikizela, MEC of Human Settlements
It's not just social housing, it's mixed development that is viable and financially feasible.— Bonginkosi Madikizela, MEC of Human Settlements
Listen to the MEC on The Pippa Hudson Show: