Authorities have been building temporary homes for the affected people after a fire ravaged over 1,000 homes just days before Christmas last year. Community leaders said that young people were against the new development as it was built on the only sports field in the area.
About 350 temporary structures were torched on Friday night, allegedly by protesters who are against the development.
The homes were built after a massive blaze razed more than a thousand shacks just days before Christmas, leaving thousands homeless.
Only 400 of these units have been erected on the site where a devastating fire destroyed about 1,100 shacks in December and further units are meant to go up on the sports field but there have been objections.
Roads in the vicinity were obstructed on Friday night after demonstrators took to the streets and burnt tyres during a housing protest.
More than 1,000 homes were destroyed in the fire, leaving over 4,000 people homeless.
The rebuilding of homes commenced two weeks ago, after a fire ravaged the area just days before Christmas.
MMC for housing Malusi Booi said the current timeline for completion of temporary structures was between June and August - not April as officials had initially said.
National government availed about R35 million to ensure residents have a roof over their heads and at least 30 temporary homes are expected to be built every day.
The iron sheets will be taken to a scrapyard in Epping where in return the men will receive money for it.
Thousands of locals are still sleeping out in the open or staying with friends or family weeks after a fire tore through the area.
"There are people that gave us some places to sleep. But others sleep here, in this road."
Just before Christmas, a massive fire ripped through parts of the informal settlement, destroying more than 1,300 dwellings and displacing more than 6,000 people.
Earlier this week, the City of Cape Town said national government made R35 million available for Masiphumele residents.
On Tuesday, a group of affected residents took to the streets in protest over the lack of support, specifically the housing kits to rebuild their homes.
Just before Christmas Day, a massive fire ripped through part of the neighbourhood, destroying more than a thousand homes and leaving thousands of people with nothing.
City of Cape Town Mayco Human Settlements member Malusi Booi said that R35 million had been approved for starter kits.
Gift of the Givers is in Masiphumelele on Friday distributing food and gifts.
