Warning to South Africans looking to buy a house in a security estate

Demand for property in security estates and sectional titles is rising in South Africa, but experts urge potential buyers to consider all costs to avoid financial strain.

Several property experts told BusinessTech that estates and sectional title schemes have become the preferred choice for many prospective buyers in 2025. 

These property types top the list for those seeking security, community, and lifestyle amenities, which include first-time buyers, affluent families, and retirees. 

Just Property’s chief executive officer, Paul Stevens, said security estates and sectional-title properties are becoming more popular due to safety concerns and affordability.

“Developers are focusing heavily on gated communities, which appeal to a wide demographic,” said Stevens.

Lightstone data shows 274,500 property transactions occurred in 2024, 16% within security estates alone.

Although freehold properties still constitute a significant portion of the property market in South Africa, Stevens added that the shift towards sectional-title units and estates is gaining momentum.

While this momentum is seen in the major metros like Gauteng and KwaZulu-Natal, these property types are booming in the Western Cape. 

Brent Townes, Sectional Title Team Leader at Lew Geffen Sotheby’s International Realty, told BusinessTech that over 50% of properties sold in most areas in Cape Town are now sectional titles. 

He highlighted that new developments offer options to suit all budgets and lifestyles and secure living with CCTV, underground parking, lift access, backup generator, and facial recognition entry.

Interestingly, Townes noted that 40% of purchasers in sectional title units in the affordable segment are first-time buyers looking to enter a buoyant property market.

Townes added that these buyers typically buy in Observatory, Salt River, Claremont, Wynberg and Wynberg Upper, Rondebosch and Plumstead, with prices averaging R2,250,000.

However, he added that value for money can be found in the price ranges of between R800,000 and R1.3 million.

Giovanni Gaggia, CEO of Real Estate Services, agreed with Townes and highlighted that affluent buyers are paying between R5 million and R20 million or more for high-end estate properties.

These buyers are looking for homes in premium areas such as the Cape Winelands and the KZN North Coast.

He added that the Garden Route, particularly George, Mossel Bay, Knysna, and Plettenberg Bay, is another area seeing notable demand.

A warning to prospective buyers

While there are many benefits to living in a security estate or sectional title development, prospective buyers are urged to consider all the costs of such properties. 

“While many buyers enter the market with optimism, understanding the full cost of homeownership and purchasing a sectional title home is essential,” said Townes.

“While the purchase price is certainly the largest expense, additional costs can quickly add up, and they aren’t always factored in when buyers set their budgets.”

Using the average apartment price of R2,250,000, Townes lists the following as costs, some of which are often overlooked, and which can cause significant financial strain if not budgeted for:

• Bond Costs: R52,603

• Transfer Costs: R97,634

• Moving Costs: Variable (R10,000+)

• Deposit for Utilities: Variable (R2,000+)

• Fibre/Wi-Fi Installation: R1,500 – R5,000 (plus monthly costs)

• Homeowners Insurance: R500 – R2,500 per month

“This means that, beyond the purchase price, buyers should budget at least R200,000 to R250,000 in additional upfront costs,” he said.

“And another cost often not considered enough is the monthly levy that all sectional title and estate owners must pay.”

This is often paid to the Body Corporate, which covers the complex’s or estate’s management and includes factors like maintenance and security.

Townes stressed that buyers should do their homework and ensure that their budget includes all the property purchase extras such as bond registration, transfer costs, moving expenses, and setup fees.

He added that this includes a plan for long-term expenses, which include monthly levies, insurance, and maintenance costs that will continue beyond the initial purchase.

“Check their past annual escalation rates and project them into the future. This will help you get a good idea of what you’ll need to maintain your standard of living,” he said. 

“Levies can vary significantly, depending on what facilities are offered and will usually be much higher if amenities such as pools and gyms or if security includes manned entrances,” he warned.