The latest stats released by ooba, show that the overall demand for sectional title property has risen.
Statistics released by ooba, South Africa’s largest bond originator, show that the overall demand for sectional title property has risen year-on-year (yoy) by almost 7%. First-time homebuyers (FTBs) are driving the sectional title market, with 56% of all sectional titles applications received by ooba in the last 12 months originating from this market.
33% of FTB’s are currently opting to purchase a sectional title unit as opposed to freehold property, an increase of just over 6% yoy. “This indicates that there is a steady increase in demand for sectional title property by FTBs – primarily due to affordability. Prices of sectional title units are generally cheaper than full title homes and the running costs are lower. This is appealing to those eager to get their foot onto the first rung of the property ladder,” says ooba CEO, Rhys Dyer.
The average age of the FTB buying a sectional title unit is 33 years, while the average age of this market buying a full title property is 39. The age gap in the second-time homebuyer category is much smaller, with those acquiring a sectional title property being 42 years, compared to the average age of 43 years for those buying a full title property. SA’s national police service’s latest annual crime statistics show that there was a 5.2% increase in house robberies in the last year, with 20 281 robberies having taken place at residential premises.
“Sectional title complexes also generally offer the benefit of added security through, for example, access control, electric fencing, night and day-time guards, or improved neighbour vigilance. The advantage of living in a more secure community has also added to the increasing popularity of sectional title units amongst both FTB’s and second-time homebuyers. The increased demand for sectional title units is expected to continue into 2016,” concludes Dyer.