If it's the only way to get a permit - everybody who is developing now. Unless they would rather lose out on having homes to sell in a city where the demand is so high that house prices are going up by 17% a year.
Normally - I would write any increase like that off as clearly a bubble - but there is one major factor that makes me hesitant to do so. Cape Town's population is increasing by between 10 and 15 percent per annum as people, rich and poor, move to the city. Even my parents, who have lived in Pretoria all their lives moved down last year, because in Cape Town, unlike Pretoria, there were jobs.

All these people arriving, many of the middle class and up - wanting to buy homes.

It's not like they developers wouldn't get paid for the free housing part, those will just be cheaply built and cheaply sold. Only an idiot would turn down the millions to be made from the rest of the development to gripe about those. 
All I'm suggesting is outsourcing the red-tape to red-tape experts.