More than half of all property sales in most Cape Town suburbs are now sectional title, a trend driven by the city’s sharply rising real estate prices.
Now Africa’s most expensive city for real estate, Cape Town’s housing market has surged in recent years. According to Lightstone data, it is also outperforming Johannesburg in both price and volume of sales. In 2024, Cape Town recorded R81 billion in property sales, up from R74 billion in 2021.
Meanwhile, Johannesburg’s figures declined from R59 billion to just over R47 billion in the same period.
Despite escalating prices, Lew Geffen Sotheby’s International Realty’s Brent Townes believes the sectional title segment still offers value.
These properties—typically apartments or townhouses in shared developments—allow individuals to own a defined section of a building along with a stake in the common property. They’re increasingly popular among first-time buyers, who now account for 40% of purchases in this segment.
Forty percent of sectional title purchasers are first-time buyers looking to get a foot on the ladder of Cape Town’s buoyant property market, said Townes.
First-time buyers now account for 72.71% of the market—up from 71.34% a year ago—indicating growing confidence among new entrants, according to MyProperty Home Loans’ latest data comparing March 2024 to March 2025.
Despite financial pressures from the March Budget, several positive shifts have improved conditions for buyers, including a reduced prime lending rate (from 11.75% to 11%), a higher transfer duty exemption threshold, and zero transfer duty on homes under R1.2 million.
The average first-time buyer purchase price rose slightly to R1,215,522, while the average approved bond amount jumped from R1,029,192 to R1,567,694.
Among the city’s most desirable areas for sectional title are the Southern Suburbs, where proximity to top schools, the University of Cape Town, commercial hubs and green spaces has pushed demand—and prices—higher.
However, for those looking for more accessible pricing or lock-up-and-go convenience, there’s a multitude of sectional title options, especially in Observatory, Salt River, Claremont, Wynberg and Wynberg Upper, Rondebosch and Plumstead, said Townes.
While average property prices in these suburbs sit around R2.25 million, sectional title units can range from R800,000 to R1.3 million.
Thanks to rampant development in recent years, which has seen the number of sectional title properties soar, coupled with rising freehold prices and lifestyle choices, more than 50% of the properties sold are now sectional title with options to suit all budgets and lifestyle needs, said Townes.
Townes also highlighted robust interest from investors—many purchasing for rental income or for their children attending university:
These buyers tend to either buy for their children attending university, for third-party tenants in the rental sector, and also for the purposes of having a diversified investment outside of their current metro where they reside.
He cautioned buyers to prepare for costs beyond the purchase price. 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.
For a R2.25 million apartment, additional upfront costs can exceed R200,000, including:
- Bond registration: R52,603
- Transfer fees: R97,634
- Moving expenses: R10,000+
- Utility deposits: R2,000+
- Wi-Fi/fibre setup: R1,500–R5,000
- Insurance: R500–R2,500/month
- School fees/uniforms: R5,000+
Beyond the purchase price, buyers should budget for at least R200,000 to R250,000 in additional upfront costs, Townes explained.
Monthly levies are another key consideration, especially in complexes offering premium amenities.