Estate agents putting up showhouse signs all over residential areas could face fines of up to R100 000 or be sent to jail if the city's proposed new by-law regulating the placement of the signs comes into effect.
Current by-laws allow estate agencies to display an unlimited number of signs on properties as well as up to six direction signs on lamp posts along the route to showhouses.
But prompted by the city's environmental management bosses, a draft by-law currently under scrutiny limits the number of signs which agencies may display on pavements bordering properties that are for sale, while direction signs are outlawed.
Institute of Estate Agents regional chairperson Peter Venter said while the new law might have some cosmetic benefits, such a clampdown could hold serious implications for the industry.
"The proposal to limit the number of signs on a for-sale property to only one does not take into account the realities of property marketing," he said.
"Many sellers engage two estate agencies, on a joint mandate or open mandate basis, and if the seller was allowed only one sign, which one would he choose? We've recommended that two signs be allowed per property."
The institute also said that showhouses played an important part in successful property marketing, and outlawing the signs used to direct prospective buyers would have negative economic effects.
Venter said many Cape Town properties were bought by outside investors, who relied on direction signs to find properties.
"The proposed fines for non-compliance are also out of proportion to the severity of the matter. They should be reduced to a more reasonable level," Venter said.
City spokesman Charles Cooper said the deadline for submission of public comments had been extended to December 1 to facilitate more community input.