If there is a "plan" for adding thousand of housing units in the Silwan area, it means that there is free space there. Before you know it, there will be a plan to build a new Jewish neighborhood in that free space. And if this does not happen, Arabs will still not get permits to build there. The reasons Arabs are forced to build illegal houses is that it is extremely difficult to get building permits for them The authorities are trying to get Arabs to move out of the city this way. The bottom line: Undoubtedly the available area is not open for building yet and who knows what will be built there.
Prime Minister Netanyahu's meeting with security chiefs ends after four hours (haaretz)
from the article: Mayor defends plan to raze Palestinian homes in East Jerusalem