The 40-year-old woman, only identified as Faiza, lived in a shack on a field behind the Lentegeur Police Station in Hibiscus Street.
One person has since been arrested, but not charged, and a firearm confiscated.
Police say the suspect was known to the victim.
The victim was buried on Wednesday according to Muslim rites.
Hours after the murder, when the Daily Voice arrived at the shack, blood was still running down the wooden boards.
Blood could be seen splattered on the walls and boards and on the pillow where Faiza spent her final moments.
Soon after, members of City of Cape Town’s Anti-land Invasion Unit together with Law Enforcement arrived to clear three shack erected on the field.
A woman, who identified herself as Badoreniesa Essen, said she was Faiza’s friend and lived with her.
As her home was being demolished, Badoreniesa broke down in tears and in a rage started breaking down the walls and kicking it.
She claims Faiza had broken into a house in Eastridge and that was the reason why her killers came for her.
She believes her friend was murdered in a mob justice attack.
“I was not at home at the time, but I heard they were looking for her,” she explains.
“She broke into a house in Eastridge and still had the keys. While I was walking home, I heard the gunshots. I know her name but I don’t really know what her surname is.”
A young man at the scene claimed he was inside the shack when Faiza was killed but refused to comment.
A City official told his members to wear gloves as they dismantled the blood-splattered hok.
“Laai dit, ons maak alles skoon,” he instructed.
Mitchells Plain Cluster Commander, General Gregory Goss, confirmed one person was arrested and a firearm was confiscated.
Police spokesperson Sinathi Joni adds: “A murder case has been registered at Lentegeur SAPS after a 40-year-old female got fatally wounded during a shooting incident that took place. Circumstances surrounding the incident are being investigated, with no-one charged at this stage.”