Gauteng's best-kept secret: The rise of sectional title units

Buyers are snatching up Gauteng’s section title units, driven by their affordability and security needs

Data from the South Africa Deeds Office reveals that 31% of all property transactions last year were sectional titles, with an impressive 52% in Gauteng. Seeff Property Group reports that buyers are using these sectional title opportunities as a stepping stone into the property market due to the affordability and security benefits of sectional title units. 

Should You Buy Sectional Title Units? 

If you're looking to buy a home for exceptional value, a sectional title unit might just be your ticket to living the dream.

Within Gauteng’s housing market, the allure of sectional title properties isn't just in the budget-friendly price tags. Imagine a home where you don't have to fret about endless maintenance, security isn't just an afterthought, and your backyard could include shared amenities like swimming pools, lush gardens, and even a playground for the kids. Some modern developments are even throwing in gymnasiums as part of the package.

The 'lock-up-and-go' lifestyle is another irresistible feature. With the collective power of a corporate body, the burden of building maintenance and insurance costs are spread across the community of owners, lightening your individual financial load.

According to Charles Vining, the Managing Director for Seeff Sandton, sectional titles offer an accessible entry point for those with aspirations of living in the upscale neighbourhoods of Sandton. And don't worry about sky-high price surges; these properties have remained a reliable and steady investment over the last few years, escaping any drastic increases in pricing. 

Common Challenges within the Sectional Title Sector

While sectional title units offer various perks, it's essential to understand the broader context to make an informed choice. The sector is booming, but like any evolving market, it has its own set of challenges.

One key area of focus is adapting to the growing demands for alternative power solutions. Bodies corporate must actively explore ways to make complexes more self-sufficient to meet these budding considerations.

In terms of new developments, it's worth noting that escalating construction costs and regulatory hurdles have made the establishment of new sectional title schemes more challenging.

However, this only amplifies the value of existing properties and highlights the importance of location. If you're a student or a young professional, you'll be pleased to know that sectional titles situated near universities and emerging business hubs are increasingly sought-after.

How Much Are Sectional Title Units?  

Charles Vining notes that the affordability and range of options are particularly pronounced in Midrand, while Gerhard van der Linde of Seeff Pretoria East observes a shifting preference toward sectional titles for their affordability and convenience, especially in the R2 million range.

Whether you're eyeing a cosy starter home or a lavish penthouse, Gauteng has a diverse range of sectional title units for everyone:

• Budget-Friendly Choices: In areas like Weltevredenpark, Wilgeheuwel, and Allens Nek, you can expect average prices to hover around R650,000
  
  
• Mid-Range Options: Midrand stands out as a hotspot, contributing to 66% of all sectional title sales worth about R2.2 billion over the last year. Interestingly, this makes up just 35% of the property stock in the area. More than half of all transactions fell within the R400,000 to R1.5 million range.
  
  
• Centurion's Popularity: This area consistently attracts interest, with around half of all sales taking place in the R800,000 to R1.5 million bracket. Top-tier sectional title units have sold for as high as R3.7 million at The Paddocks in Southdowns and R3.5 million at The Lofts.
  
  
• Luxury Lifestyles: For those seeking the high life, there's a growing appetite for luxury units and penthouses, priced from R4 million to R6 million and even higher.

Popular Areas for Sectional Title Units 

The urban hubs of Johannesburg, Randburg, Sandton, Midrand, and Centurion top the charts in sales volume for sectional titles.

• In Sandton, a staggering 60% of all sales last year were sectional titles, even though they make up just 55% of the property stock. The sector is also flourishing with new developments.
  
  
• In Randburg, 51% of all transactions in the last year were sectional title units - compared to its 44% share in property stock - indicating that Randburg is clearly on the rise. Detmar Nuttal of Seeff Randburg notes that the area is well-loved for its affordability and secure complexes, attracting a diverse crowd ranging from first-time buyers to young families and downsizers.
  
  
• Keep an eye on Bryanston, Morningside, Lonehill, Sunninghill, Paulshof, Douglasdale, and Sandown for high volumes of sectional title properties. Buccleuch and Edenberg are also gaining traction.
  
  
• Bedfordview accounts for about 74% of its property stock as sectional titles, while Edenvale has about 35%.
  
  
• Tiaan Pretorius, manager for Seeff Centurion, highlights that sectional titles in this locale form about 56% of all sales transactions over the past year while making up just 46% of the property stock. And this trend shows no signs of slowing down.

Are you interested in buying a sectional title unit? Reach out to Seeff Property Group for expert assistance, as our Property Practitioners have the area knowledge and experience to offer advice and insights.

If you’re unsure whether sectional title property is for you, here’s what you should know about sectional title units before you buy.