Sectional Scheme properties have become an increasingly prominent part of South Africa’s residential property market, but their ownership profiles, property values, development trends and sales activity differ notably from those of Freehold homes. Lightstone has compared the two property types and traced the growth of Sectional Schemes since 1973, examining who owns them, what they are worth and how they perform.
Age of residential property owners
Age distribution of property owners
One clear distinction is the age profile of owners. Sectional Scheme properties tend to have younger owners than Freehold properties (see the “Age distribution of property owners” graph above).
The supply of Sectional Scheme properties has grown over time, with their share of new residential stock rising particularly during property-boom periods. The graph “New stock split between Sectional Title and Freehold” below shows that in 2024, the proportion of new residential stock comprising Sectional Scheme units approached its previous peak, recorded in 2007, over the period analysed.
Apart from the period between 1981 and 1985, Sectional Schemes have accounted for a consistently high proportion of new residential development since 2007.
New stock split between Sectional Title and Freehold
Development data shows that Gauteng has consistently led the country in the number of Sectional Scheme units built across the periods recorded from 1981 onward.
However, the graph, “Sectional Scheme units built by period and province” (below), indicates that the number of Sectional Scheme units built across the provinces has declined over the periods analysed, from 1981 onwards. Importantly, the data reflects the number of individual residential units within sectional title schemes, rather than the number of schemes developed.
A single sectional title scheme, for example, may comprise 40 individual units. The graph therefore measures the number of units built, rather than their share of new residential stock.
Sectional Scheme units built by period and province
The Western Cape (see “Average Sectional Scheme value per province” below) is home to the highest average value of Sectional Scheme properties at just over R2.2 million, followed by KwaZulu-Natal (R1.4 million) and Limpopo (just over R1.1 million), which puts volume-leader Gauteng (just under R1.1 million) in fourth place.
Average Sectional Scheme value per province
The ten locations with the highest average Sectional Scheme property values (see “Town values” graph below) are spread across four provinces.
The Western Cape accounts for six of the top ten locations. Noordhoek and Franschhoek have the highest averages, exceeding R4.3 million, followed by Drakenstein at R4.1 million. Herolds Bay, Hout Bay and Plettenberg Bay complete the province’s six entries.
Other locations in the top ten include uMngeni in the KwaZulu-Natal Midlands, Salt Rock on the province’s North Coast, Midstream in Gauteng and St Francis Bay in the Eastern Cape.
Towns with the highest average property values
Lightstone’s analysis also points to a difference in annualised value performance. Annualised growth in property values is generally lower for Sectional Scheme units than for Freehold homes.
For Sectional Scheme properties sold over a recent 18-month period, Lightstone calculated annualised value growth by comparing each sale with the previous sale of the same property, regardless of how long ago that earlier transaction occurred. Of these sales, 12% recorded annualised growth of 1–2%, while a high proportion experienced growth below 4%.
The data (see “Annual growth on value achieved”) shows that, across the measured growth bands above 4%, a greater proportion of Freehold properties than Sectional Scheme units recorded annualised value growth.
Annual growth on value achieved
Yet lower value growth does not necessarily translate into slower market activity. Sectional Scheme units show a higher turnover rate relative to their share of the housing stock. There are approximately 4.3 Freehold units for every Sectional Scheme unit, but the sales ratio is narrower: 1.7 Freehold sales for every Sectional Scheme sale. Lightstone’s analysis also shows that 44% of individual Sectional Scheme units were sold at least once between 2020 and in mid-2026, compared with less than 20% of individual Freehold properties.
Sectional Scheme units outpace Freehold in property sales
