Sunday, May 19

Lower prices are big drawcard for sectional title homes

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There is another drawcard for the sectional title sector...

The prices of sectional title properties are far more accessible than free-standing homes, and this is another drawcard for the sectional title sector. However, Trafalgar Property’s Andrew Schaefer says amenities in a sectional title building make a difference in terms of rentals.

These include security, fibre, DStv ready, pool, playground facilities, and proximity to transport, shops, entertainment, schools and work opportunities. A price comparison between free-standing homes and sectional title homes in estates, complexes and apartments shows the following price differences:

CENTURY CITY (AVERAGE PRICE)

  • Free-standing home: None 
  • Sectional title apartment: R1.893million 
  • Sectional title in a complex: R2.375m
  • Sectional title in an estate: R3.306m.

Source: Lightstone and Propstats (provided by Seeff Property Group)

PARKLANDS (AVERAGE PRICE)

  • Freestanding home: R1.8m
  • Sectional title apartment: R900000
  • Sectional title in complex: R1.1m
  • Sectional title in an estate: R1.7m.

Source: Lightstone and Propstats (provided by Seeff Property Group)

CLAREMONT (AVERAGE PRICE)

  • Free-standing home: R3.336m
  • Sectional title apartment: R1.275m
  • Sectional title in a complex: R1.764m
  • Sectional title in an estate: R4.044m.

Source: Lightstone and Propstats (provided by Seeff Property Group)

KENILWORTH (AVERAGE PRICE)

  • Free-standing home: R2.45m
  • Sectional title apartment: R1.185m
  • Sectional title in a complex: R1.983m
  • Sectional title in an estate: R2.075m.

Source: Lightstone and Propstats (provided by Seeff Property Group)

BELLVILLE – STELLENBERG (AVERAGE PRICE)

  • 3-bed/2-bathroom freehold: R2.290m
  • 3-bed/2-bathroom sectional title: R1.695mn

AVERAGE RENTAL PER MONTH:

  • 3-bed/2-bathroom freehold: R14500
  • 3-bed/2-bathroom sectional title: R9000

Source: Chas Everitt International

Sectional title gaining favour

GROWING MARKET Sectional title sales and rentals are increasing rapidly. Picture: Roberto Nickson

Sectional title rentals and sales have increased in popularity over the past two decades, says Tobie Fourie of Chas Everitt International.

He says Centurion in Gauteng has experienced “tremendous growth” in sectional title estate living, and in areas like Sandton the sectional title segment of the market has grown by 11% since 2013.

“Over the same period the Western Cape saw 3% growth in sectional title living and a 2% decline in freehold purchasing. The most growth in sectional title was seen in the Strand, with a 12% increase.”

In the Western Cape, Fourie says units sized 70m² and below account for 51% of sales. This is followed by Gauteng with 36% and KwaZulu-Natal with 34%. 

He says sales based on bedroom numbers varies. “In the Western Cape, one-bedroom apartments account for 20% of sales and two-bedroom units for 59%, for example.” 

Cities must adapt to cope

GOING UP Limited available land will mean more high rise buildings in cities. Picture: Victor Garcia

Evolving lifestyles are a big driver behind sectional title growth, with people adapting their lifestyles to find more convenience, says Seeff Property Group’s Samuel Seeff.

Transport costs and traffic, for example, are major drivers of the demand for mixed-use developments. “Petrol is becoming a major expense and sitting in traffic a real burden for most.”

Another lifestyle change is that years ago, homes had large dining rooms for the family to sit down to a meal every night, but this is slowly changing.

As the demand for urban areas increases and city population numbers expand rapidly, as has been the case in South Africa’s big cities, Seeff says limited available land will necessitate more sectional title property being constructed, and more high rises will be needed to cater for the growing city populations. 

“At the same time, city planners will need to look at the traffic and transport challenges.”

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