At least 15 people have been arrested for public violence in Macassar on Tuesday following a violent housing protest.
Hundreds of disgruntled residents gathered near the police station threatening to vandalise more public property for a second day.
On Monday, protesters torched a council building, burnt tyres and pelted City of Cape Town vehicles with stones.
Locals are opposing the relocation of evicted Nomzamo residents to the area, saying Macassar residents should get preference.
Protester Gert Smit says he is demonstrating for housing.
"I have been living in a backyard for 22 years."
The relocation of Nomzamo residents has been met with widespread criticism.
This is the second attempt made by the council to house Nomzamo residents, who were evicted from land owned by the South African National Roads Agency Limited (Sanral).
This after the agency obtained an interdict in the high court.
Sanral said the residents were squatting on the land illegally.
Blackheath residents in the north of Cape Town also protested against a plan to move Nomzamo evictees onto open land in their area.
A meeting between authorities and residents is scheduled to take place on Thursday after protesters demanded to speak with Cape Town Mayor Patricia de Lille and local councillor John Heuwel.
De Lille says the violence must come to an end.
"We have to condemn in the strongest possible terms the destruction of government property. If people are angry, there are ways in which we can engage with one another in a peaceful manner."