One person has been injured after he was shot in the chest while police arrested four people on charges of public violence.
Cops have also opened a number of arson and malicious damage to property cases.
The protest, which started in Imizamo Yethu informal settlement on Saturday, intensified on Monday as rioters burnt tyres, blocked roads, smashed windows and stoned and overturned vehicles.
At least one car was torched.
City of Cape Town Law Enforcement and Disaster Management caravans which were used as kitchens for the victims of the fire, a garage, as well as an old age home pelted with stones were also damaged during the protests, police said.
The protests come after victims of a devastating fire in March started rebuilding their shacks, but blocked the only two roads leading into the area, sparking complaints from residents.
The fire claimed the lives of three people, destroyed 3500 structures and left 15 000 people homeless.
The City has since embarked on a reblocking project of the informal settlement but angry protesters have accused the City of making “empty promises” as they’re still living in temporary structures months after the fire.
A devastating storm last month has added to their woes.
A local councillor tried to address protesters but community leader Markus Ndude said: “We don’t want any other City official to address us, we want the mayor with contractors to come here.”
Mayor Patricia de Lille said she tried to enter the area on Monday morning but was prevented from doing so.
She said the City will not be held to ransom by “the anarchy caused by some residents”.
“The disruption in the community is now reaching dangerous levels but I remain completely willing to personally go and mediate with the community to get to the bottom of their issues and to ensure that the City of Cape Town keeps to its end of the bargain regarding development in Imizamo Yethu," she says.
“I am prioritising this matter and I am personally leading this and unblocking any issues.
“I receive daily reports on the re-blocking project and I forward this to community leaders to ensure that they keep an eye on the development’s progress.
“There are now some residents who are resorting to criminal behaviour and we cannot condone this.”
Provincial police spokesperson Brigadier Novela Potelwa confirmed more cops were deployed to Hout Bay and a Provincial Joint and Intelligence Structure (ProvJoints) was activated for better management of the situation.
“Plans are afoot for discussions to take place between the City of Cape Town officials and community leaders from Imizamo Yethu to resolve the impasse,” said Potelwa.
“Law enforcement deployment in the area is looking into protection of property, traffic flow and visibility during day and night time.
“Four male suspects have been arrested for public violence and they are due to make a court appearance once they have been charged.”
Robert Daniels of Emergency Medical and Forensic Pathology Services, confirms a man was shot in the chest. It is not clear who shot him.
The man was taken to Victoria Hospital.