Shifting dynamics in South Africa’s property market: sectional title vs freehold in 2025
As South Africa's property landscape continues to evolve in 2025, a clear divergence has emerged between sectional title and freehold properties, each responding differently to current economic conditions and buyer preferences.
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As South Africa's property landscape continues to evolve in 2025, a clear divergence has emerged between sectional title and freehold properties, each responding distinctly to current economic conditions and buyer preferences.
"We're witnessing what can truly be described as a tale of two markets," says Giovanni Gaggia, CEO of Real Estate Services South Africa.
"While both property types have their distinct advantages, they're performing quite differently in terms of growth, costs, and appeal to various buyer segments."
Current market data reveals that freehold properties are showing stronger price growth at 3.7%, contrasting with sectional title properties, which grow at a more modest rate of 2.1%. This marks a significant shift from previous years when sectional title units frequently outpaced freehold homes.
"The pendulum swings between these property types every few years," explains Gaggia.
"What we're seeing in 2025 is renewed interest in the autonomy and space that freehold properties offer, particularly as remote work continues to influence buying decisions."
Despite the slower price growth, sectional title properties remain attractive investments, especially in high-density urban areas.
The demand for these properties is expected to surge as urban centres become increasingly congested, with sectional title units now accounting for 46% of all residential plans passed in South Africa — a remarkable jump from just 13.6% in 2000.
When examining maintenance costs, the two property types present different financial models for their owners.
"Freehold ownership gives you complete control but also complete responsibility," Gaggia explains.
"Our data shows that annual maintenance budgets for freehold properties typically range from 1–3% of the property value, depending on age and condition."
In contrast, sectional title properties offer more predictable monthly costs via levies, but owners have limited control over levy increases and special assessments.
"The shared cost structure of sectional title schemes can be advantageous," Gaggia cautions, "but it's important for buyers to understand that body corporate decisions may sometimes lead to unexpected expenses."
Legal risks also differ significantly between the two property types. Freehold owners enjoy greater autonomy but must independently navigate zoning regulations, building codes, and neighbourhood disputes.
Sectional title owners, however, must contend with the complexities of the Sectional Titles Schemes Management Act and the intricate rules of body corporate governance.
"The legal framework for sectional title properties has become increasingly complex," says Gaggia.
"While this provides better protection for owners, it also creates a more intricate ownership experience that requires a greater awareness of rights and responsibilities."
Looking ahead, Gaggia believes both property types will continue to serve important roles in the market.
"Freehold properties will likely maintain their appeal for families seeking space and autonomy, while sectional title units will continue to attract first-time buyers, investors, and those seeking lock-up-and-go convenience."
For potential buyers navigating these distinct markets, Gaggia recommends focusing on long-term objectives rather than short-term performance trends.
"The right choice between sectional title and freehold isn't about which is performing better today, but rather which aligns with your lifestyle needs, maintenance preferences, and investment goals."
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