Business Report

Property price inflation slows to 5.2% in February amid demand for affordable sectional title units

Nicola Mawson|Published

Sectional title schemes continue to attract buyers due to their affordability, shared amenities, and security.

Image: Karen Sandison / Independent Newspapers

Annual residential property price inflation came in at 5.2% in February 2025, slightly down from a revised 5.3% in January, according to the latest Residential Property Price Index (RPPI) from Statistics South Africa.

The index rose 0.4% month-on-month in February. Overall inflation is currently 2.8%.

The Western Cape was the largest contributor to the annual national inflation rate, recording growth of 8.5%, with Gauteng following with house price increases of 2.5% inflation.

In metropolitan areas, prices increased by 4.9% year-on-year. The City of Cape Town saw the largest metro-level rise at 7.6%, while the City of Johannesburg recorded gains of 2.9%.

The RPPI for first-time sales rose by 5.5% compared to February 2024, and by 0.3% month-on-month.

Resales increased by 5.6% year-on-year and by 0.4% for the month.

By property type:

  • Sectional title properties increased by 3.2% year-on-year and 0.4% month-on-month
  • Freehold properties increased by 6.3% on an annualised basis and 0.4% month-on-month

According to Andrew Schaefer, MD of property management company Trafalgar, sectional title (ST) schemes continue to attract buyers due to their affordability, shared amenities, and security. ST properties now make up more than a third of home sales nationally, and over 50% in some areas, compared to just 10% in 2010.

Schaefer says demand for ST units has supported price growth in the segment, driven by both buyers and developers. The average ST home price in South Africa is currently around R1.2 million, compared to R1.5m for freehold homes. The recent increase in the Transfer Duty threshold from R1.1m to R1.21m has also put more pre-owned ST units into the tax-free bracket.

ST properties are often seen as entry points for young professionals and provide rental potential for investors. They are also becoming more popular among retirees due to lower maintenance costs, regulated levies, and built-in security features.

Schaefer adds that well-managed ST schemes benefit from clear governance rules under the Sectional Titles Schemes Management Act, which helps maintain property values and financial stability for owners.

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