The rise of new sectional title developments
Category Newsletter: Company Message
There can be little doubt that the sectional title sector of the property market is in for a busy year. We have seen this sector rise in prominence and it certainly is where the future of property lies in South Africa. While the sector may well come under pressure in volume and price terms in view of the wider economic climate, it is likely to continue to perform well.
The increase in sectional title developments across greater Cape Town presents a wealth of choice for new investment opportunities. It is estimated that over the next 4 years, new developments will be constructed to the value of R8 billion in the city centre alone. Cape Town is well ahead of other South African metros in terms of infrastructure, business growth and its ability to attract investment.
When considering what sectional title development to invest in, we suggest that strong due diligence is carried out on the developer and their track record before any commitment is made. We are currently working closely with Blok, Signatura and DA'Realty and manage a number of their new developments on the Atlantic Seaboard and in the City Bowl.
As I'm sure you are aware, the Managing Agent plays an equally important role, especially due to the added complexity brought about by the introduction of the Sectional Titles Schemes Management Act and the Community Schemes Ombud Service Act in early October last year. This new legislation has now firmly shifted the spotlight to the importance of appointing a reputable Managing Agent who is responsible for ensuring that the scheme concerned meets its financial obligations and all legal requirements according to the Acts.
For this reason our April newsletter articles specifically focus on the roles and duties of a Managing Agent, why appointing a good Managing Agent matters to your investment and an introduction to the ins and outs of sectional title schemes.
If you would like to discuss your scheme's sectional title requirements or if you require a quotation for the management of your scheme, please contact Kahn Hviid-Nielsen, our General Manager, at our Head Office on 021 418 2255 or alternatively, you can email her at kahn@coastalpropertygroup.co.za.
Author: Mark French
