The development of Erf 3339 is entering an important new phase, with the project set to create further opportunities for first-time homeowners while contributing to Knysna Municipality’s broader objective of addressing spatial inequality and promoting integrated communities.
Portfolio Chairperson for Human Settlements, Councillor Neil Louw, announced that the first 61 beneficiaries received their plot allocations on 12 September 2026. “These allocations were made as part of an agreed process through which Council made the erven available at a reduced selling price. This milestone represents an important step towards expanding access to property ownership for qualifying lower- and middle-income residents,” he said.
“Council had previously approved reduced selling prices for the first phase of the development. Qualifying applicants earning above R22 001 per month would pay R52 352 per stand, subject to the applicable qualifying criteria and verification process,” Louw explained. “I must however emphasise that the allocation of these first 61 erven is not the end of the Erf 3339 project.”
Phase 2 is intended to provide a further 332 housing opportunities for first-time homeowners, subject to the necessary planning and statutory approval processes. Applicants for this phase of the development will also be subject to qualification and verification specifications.
The proposed development will provide a range of housing options, including freestanding units, townhouse units and flats, supported by community amenities and upgraded infrastructure to create a more diverse residential environment. Phase 2 will take a holistic approach to development, incorporating not only residential opportunities but also recreational areas, open spaces, and parking. This approach is intended to ensure that Erf 3339 develops into a sustainable residential environment rather than simply a collection of housing units.
“The development will be open to qualifying applicants from all communities below the R22 000 per month income threshold,” Louw continued. “Thereby reinforcing the principle that Erf 3339 is intended to contribute to a more integrated Greater Knysna, rather than serve as an isolated development for a single community.
“Erf 3339 is about more than simply providing individual plots or houses. It is about changing the way we plan our communities to address the spatial inequalities that continue to affect our residents. Phase 2 will broaden access to homeownership across our communities. Our aim is to develop a diverse and integrated neighbourhood where people can live, work and raise their families with dignity,” he said.
The development will make use of the Finance Linked Individual Subsidy Programme (FLISP) model. FLISP is linked to home-loan financing and applicants must meet the relevant eligibility requirements and be able to qualify for a home loan. The subsidy can be used in conjunction with an approved housing loan to assist qualifying first-time homeowners to access the property market.
Acting Municipal Manager Boy Ngubo said the municipality was committed to ensuring that the development proceeds through a transparent and compliant process. “This project demonstrates our commitment to creating sustainable housing opportunities while following the necessary planning and procurement processes,” he explained. “We recognise the importance of getting this development right and have followed an open and competitive Supply Chain Management process to appoint a developer for the next phase of the project. The procurement process is currently in its final stages. Once the developer has been appointed and the necessary planning processes have been completed, implementation of Phase 2 will commence.”
The municipality will host an open day once the procurement process has been concluded, providing prospective beneficiaries and interested members of the public an opportunity to receive detailed information about the development, housing options, eligibility requirements, and application process. The date for the open day will be announced once finalised.
To submit an application and for further information, please visit the Human Settlements Office at 40 Main Street Knysna (Visit Knysna / Tourism Office).