'Sectional title attractive to first-time buyers'

It's no secret that property prices have soared in Cape Town in recent years but there are still excellent investments to be made, especially in the sectional title sector, with 40% of purchasers being first-time buyers looking to get a foot on the ladder of a buoyant property market.

- PROPERTY WRITER

"The southern suburbs region is one of the most sought after as it offers many compelling drawcards, including proximity to good schools and the university, a vibrant commercial component and excellent lifestyle and this has seen house prices increase exponentially," says Brent Towns, Sectional Title team leader for Lew Geffen Sotheby's International Realty in the southern suburbs.

"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 (Upper and Lower), Wynberg and Wynberg Upper, Rondebosch and Plumstead, with prices averaging R2 250 000, although sectional title prices in this area range between R800 000 and 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."

He adds that there is also strong demand from investment buyers, who either buy for their children attending university, for third party tenants (rental sector), and also for the purposes of having a diversified investment outside of their current metro where they reside.