The location of the two-bedroom bungalow along the Clifton fourth beach (screenshot)
  • A Clifton bungalow was sold for R20 million at an auction on Tuesday.
  • Income from the property will be used to fund projects such as water augmentation and social upliftment. 
  • The property was previously rented out on a long-term lease of 20 years, with the option to buy. 

A rundown two-bedroom bungalow along Cape Town's prestigious Clifton fourth beach was sold by the city for R20 million on Tuesday morning. 

The city plans to use the money to "fund expenditures on projects on the City’s budget such as water augmentation [and] social upliftment," mayoral committee member for assets and facilities management Stuart Diamond told Business Insider South Africa. 

The 357 square meter plot features a small house with an open-plan lounge kitchen-dining area and a small garden area. 

It is situated along Fourth Beach Way.  

Location of the bungalow at Clifton's Fourth Beach. (supplied)

The bungalow was sold on auction by auctioneers ClareMart after the previous tenant revoked the lease due to deteriorating health. 

Diamond said that city's records reflect that the previous tenant had a long-term lease of 20 years with an option to purchase.

"The previous tenant did not exercise this option and did not want to renew the lease for health reasons as he is close to 90 years old."

Diamond could not confirm who the purchaser of the property is. 

"The bid was made through a local legal representative," he explained.