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.
"We're witnessing what can truly be described as a tale of two markets," says Richard Gray, CEO of Harcourts 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."
According to the latest market data, freehold properties are currently showing stronger price growth at 3.7%, while sectional title properties are growing at a more modest 2.1%. This represents a shift from previous years when sectional title units often outpaced freehold homes.
"The pendulum swings between these property types every few years," explains Gray. "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 slower price growth, sectional title properties remain attractive investments, particularly in high-density urban areas. The demand for these properties is expected to increase as urban centers continue to densify, with sectional title units now accounting for 46% of all residential plans passed in South Africa – a significant jump from just 13.6% in 2000.
When it comes to maintenance costs, the two property types present different financial models for owners. "Freehold ownership gives you complete control but also complete responsibility," explains Gray. "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 through levies, but owners have limited control over levy increases and special assessments. "The shared cost structure of sectional title schemes can be advantageous, but it's important for buyers to understand that body corporate decisions may sometimes lead to unexpected expenses," Gray cautions.
Legal risks also differ significantly between the two property types. Freehold owners enjoy greater autonomy but must navigate zoning regulations, building codes, and neighbourhood disputes independently. Sectional title owners, meanwhile, must contend with the complexities of the Sectional Titles Schemes Management Act, body corporate rules, and potential conflicts within the community governance structure.
"The legal framework for sectional title properties has become increasingly complex," says Gray. "While this provides better protection for owners, it also creates a more intricate ownership experience that requires greater awareness of rights and responsibilities."
Looking ahead, Gray 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 buyers navigating these two markets, Gray 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."
