The sectional title market in Morningside, north of Johannesburg, now accounts for 63% of the suburb’s property landscape. This is according to Di Kuhlenthal, new developments specialist for Lew Geffen Sotheby’s International Realty, who said compared with the freehold market, the sectional title sector provides potential buyers with a foot in one of Johannesburg’s most stable markets.
“Investors also have a broad range of property options from which to choose, with prices starting at around R900,000 for a compact one-bedroom flat, and ranging all the way to R20m+ for a luxury penthouse with all the bells and whistles,” said Kuhlenthal, noting that the most popular properties are modern two- and three-bedroom apartments and townhouses in the R1,5m to R3m price band. “According to Lightstone data, 40% of all sectional title sales recorded during the past three months – ending 31 August – were in this bracket.”
There were 73 sectional title sales during this period to a combined value of R211,8m, at an average sale price of R2,9m, according to Lew Geffen, chairman of Lew Geffen Sotheby’s International Realty.
“While the most sales (29) occurred in the R1,5m to R3m price band, 18 units sold for more than R3m at an average price of R6,7m,” said Geffen. “At the lower end of the market there were 25 sales in the R800,000 to R1,5m bracket and one apartment sold for below R800,000.”
On average, freehold houses have breached the R6m mark during the past three months, with top-end prices now nudging R20m.
Photo: Plaisir is a 20-unit complex due for completion in November. It comprises two- and three-bedroom units as well as a luxury penthouse with roof terrace, where prices start at R1,999m