Weekend Argus (Saturday Edition)
Sectional titles are rising in popularity
SECTIONAL title homes in South Africa are the fastest growing sector in the residential property market, with recent statistics showing their prices rose at a faster pace than freehold properties.
Recent home loan data shows this sector accounted for 67.4% of all investment properties sold last year, says Alexa Horne, the managing director of DG Properties. The separate ownership of a unit within a group-owned complex or development is hot property at the moment, she says.
“Sectional title properties often offer a more affordable entry point into the property market compared to freehold properties. This makes them attractive to first-time buyers, young families and people looking to invest in property. For investors, sectional title is particularly appealing as they offer good capital appreciation and rental income.”
Horne says most sectional title developments offer security features such as gated access, security guards and CCTV surveillance. The developments also often include shared facilities such as a pool, gym and communal garden areas – features that can be cost-prohibitive, and possibly unattainable for freehold homeowners.
“These common areas are maintained via the body corporate which further reduces costs as well as the burden of responsibility.
“Added to this is the fact that many of the sectional title developments are in prime urban areas close to schools, shopping centres, entertainment, restaurants and public transportation.
“They also offer a lock-up-and-go lifestyle which is increasingly in demand among homeowners and tenants – both young and old.”
Horne says another perk of sectional title ownership is the legal protection afforded under the Sectional Titles Act, which regulates the management and governance of sectional title schemes.
Paul Upton, the head of developments for DG Properties says one of the most popular sectional title developments on the market is The Fynbos in the Cape Town CBD.
“This first-of-its-kind biophilic building is currently under construction on
Upper Bree Street in the heart of Cape Town’s CBD, and will feature 689 apartments, a rooftop sunset terrace with a lap pool and co-working space, a rooftop fitness centre, as well as a groundfloor plant-based restaurant, a tearoom and a botanical bar.
“Apartments here are priced to appeal to a diverse audience, with the studio units starting at R1.152 million. One-bedroom apartments start at R1.968m and the two-bedroom apartments start at R4.920m.”
Another cutting-edge development in Cape Town’s CBD is The Rubik, nearing completion on the corner of Loop and Riebeek Streets.
“The Rubik consists of luxury residential apartments above premium offices and high-end retail space – all housed within a highly distinctive modern glass-clad ‘tiered’ building that promises to become an icon in Cape Town’s central business district,” says Upton.
“Apartments here start at R3.349m and there are one-bedroom, two-bedroom and apartment units.”
A sectional title development on the Atlantic Seaboard that has proved to be popular is Station House, at 19 Kloof Road in the heart of Sea Point, with only three units left of the 201 luxury flats housed within this 12-storey building.
“Station House also features a signature Pick n Pay
supermarket, restaurants by the Kove Collection at street front and the 9th floor levels, a private residents lounge, braai areas, kinetic gym and pet park, a residents pool, a laundry, a water-less car wash, and pods which include yoga, gym facilities, and a co-working area.
“The development is also able to function off the electrical grid, with generators providing full power to the entire building. There is also a water reticulation and water filtration system.”
Upton says these are just a few examples of some of the ground-breaking sectional title developments on the market in Cape Town that are drawing high levels of interest for obvious reasons.
“There are many other options available to suit buying tastes, budgets and location preferences and all of them continue to see robust demand from buyers.”
For more information on sectional title developments visit www.dogongroup.com