Townhouses: The perfect investment for both living and profit
Category Newsletter: Latest News
Townhouses typically cost less than free-standing homes or apartments, making them an affordable option for first-time buyers or investors looking to enter the property market without breaking the bank.
Additionally, townhouses often have shared amenities, such as swimming pools, gyms, and parking, which can further reduce costs.
"We're definitely seeing a growing demand for townhouses in Johannesburg. This is largely driven by urbanisation, affordability, and changing lifestyles. As more young professionals seek secure, low-maintenance and cost-effective housing, townhouses have become an attractive option," says Cobus Odendaal, CEO of Lew Geffen Sotheby's International Realty in Johannesburg and Randburg.
Odendaal says townhouses offer unique advantages that make them attractive for both investment and living purposes.
He shares some of the advantages of investing in a townhouse:
Affordability: Townhouses are more spacious than an apartment and usually have small gardens but they typically cost less than free-standing homes, making them an affordable option for first-time buyers or investors looking to enter the property market without breaking the bank.
Shared Expenses: Costs for services like security, gardening and maintenance are divided among the property owners, reducing individual financial burdens.
Facilities: Many townhouse developments have shared amenities like swimming pools, gyms, play areas and communal gardens.
Security: Enhanced security features like gated access, security personnel or surveillance systems and the presence of other residents provides a higher sense of safety.
"Affordability is certainly starting to play a bigger role in the purchasing. Scaling down, lower maintenance and other factors as mentioned herein seem to be at the forefront in many buyer's decisions," he says.
David Jacobs, Regional Sales Manager for the Rawson Property Group, says more South Africans have been opting for townhouse/ sectional title property purchases over the last few years. It offers a hassle-free choice for modern living.
"They are more affordable to buy than their freehold counterparts, and have the added bonus of predictability when it comes to ongoing maintenance, repair, and upgrade costs that come out of your monthly levies. Townhouse living is all about being part of a community and feeling safe with great security as they have better access control and tend to encourage neighbourly behaviour, which means more people are looking out for you and your home.
"Townhouse properties attract a variety of buyers from young families, and young professionals to retirees looking for safety and convenience and the lock up and go lifestyle," he says.
Meanwhile, Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, says according to the Q2 2023 RE/MAX National Housing Report, a total of 21,037* freehold properties and 12,757* sectional title units were sold countrywide.
"Reviewed against previous RE/MAX National Housing Reports, the number of freehold properties registered dropped by 44% YoY and sectional titles dropped by 38% YoY. Average prices for sectional titles also grew by 7% YoY compared to just 3% growth for freehold properties.
"Largely owing to their affordability, there seems to be a growing demand for sectional title homes, which include properties like townhouses, apartments, and semi-detached homes," says Goslett.
Author: Property24
