This property trend is shaking up South Africa’s housing market

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As some cities in South Africa start running out of room to expand, they’re turning to making better use of the space they do have.

Despite the country’s economic woes and the somewhat lacklustre performance of the housing market, stock shortages are looming in many parts of the country – and not only in areas where ongoing semigration has led to a spike in demand.

“However, what many people don’t know is that the option to split their properties into double or even triple dwellings is actually available to most homeowners and not only to developers.” “You can also sectionalise properties in developments if the constitution of the homeowner’s association allows for it – or doesn’t specifically prevent it,” Maritz said.

“However, although the process is much simpler than it was in the past, it is a little more complex than merely completing a standard Offer to Purchase and then selling off and transferring the units, especially if construction is involved. “Furthermore, the agreement that will most probably fall under the Consumer Protection Act and/or the Housing Consumer Protection Measures Act will have to contain certain obligations and clauses required to comply with such legislation.”“Sectional Plans cannot be drawn before a building is roof height – and these plans are required to open a Sectional Title Register which is required to transfer these units to third party end users.

 

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