Western Cape police spokesperson Brigadier Novela Potelwa said officers were called to a scene on the corner of Maphongwana and Idada Avenues in Site C shortly after 20:00.
Five unknown men had been shot and were found dead at the scene. A sixth person was taken to hospital but died on arrival.
"Organised crime detectives are hard at work, busy with an investigation which was initiated immediately. Details of the deceased persons are currently being determined," Potelwa added.
She said the victims were believed to be in their 30s.
This is the third mass killing in the area since March this year.
Five people were shot dead in Endlovini informal settlement in March and a few days later, six others were killed in Enkanini informal settlement.
Journalist Velani reports: "JUST IN: There is a mass shooting in Site C Khayelitsha. Several bodies with gunshot wounds found. Incident happened close to Taiwan Squatter Camp. Details are still scarce at the moment.
"My sources tell me they have counted over five bodies on the ground. The shooting happened this evening in Khayelitsha Site C. Police are yet to confirm the number of fatalities. It is not yet clear what really happened here.
"An hour before the massacre of six people in Khayelitsha, a woman was stabbed to death on Maphongwana Street (the shooting happened on the corner of Maphongwana and Idada Street). Police are now looking for the victim's boyfriend Sivuyile Tshabile to assist them with the case
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