Land reform is a crucial economic and social strategy in developing countries, particularly in addressing poverty and inequality. In post-apartheid South Africa, the legacy of colonialism and apartheid has left a distorted land distribution system, and the failure of neo-liberal land reform to effectively transform land rights and achieve spatial justice has made radical land reform a central issue in contemporary political discourse. By focusing on state intervention and the free market as key drivers of South Africa’s land reform, this paper constructs a theoretical framework of unbalanced competition to examine the underlying causes and real-world consequences of the reform’s structural imbalances. The trajectory of South Africa’s land reform—from a moderate neo-liberal approach to a more radical stance—reveals a complex political logic. The neo-liberal reform agenda, a compromise among political elites, laid the groundwork for the radical reform push that followed. The competition between political parties, the rise of civil society movements, and sustained economic decline have all intensified this shift. The land reform experience in post-apartheid South Africa offers valuable insights for other developing nations seeking to move beyond the neo-liberal land reform paradigm.