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The City of Cape Town had initially planned to relocate both the residents of Masonwabe and Singabalapha informal settlements to a site in Gugulethu. However, the Masonwabe group claims they were promised the land and are refusing to leave. The deadline for the Main Road residents in Observatory to leave the site is approaching, but many are unsure of their future accommodations.

A meeting between the Singabalapha and Masonwabe groups in July failed to resolve tensions, as the Masonwabe families sought to hold the municipality accountable for relocating the Singabalapha occupants to land originally intended for them. An eviction order from the Western Cape High Court mandates that the Singabalapha site be vacated by 30 November, but the occupants remain uncertain about their next move.

The municipality offered emergency housing in Delft and a site at Hanover Park, but both options were rejected. According to the court order, the Gugulethu project will unfold in phases, beginning with temporary zinc and wood structures, followed by the construction of 18 three-story low-income units. Carl Pophaim, the mayco member for human settlements, stated that the first units will be allocated to Gugulethu residents, then to the Singabalapha community.

However, Gugulethu residents like Nombeko Leputhing argue that the units should exclusively serve their community, as Gugulethu already faces significant housing issues such as overcrowding and poverty. The ANC deputy chief whip, Nomi Nkondlo, questioned the City's decision to relocate the groups to Gugulethu, asking what factors influenced the choice over alternative areas.

She pointed out the city's history of temporary housing arrangements without a clear path to permanent housing. Zamuxolo Gulwa, an attorney from Ndifuna Ukwazi Law Centre, asserted that the Singabalapha group lacks the legal authority to select their relocation site, stating that they are now at the mercy of the City and the Gugulethu community.

With objections from the Gugulethu community, Gulwa concluded that the Singabalapha residents currently have no options.