The pandemic-induced premium for larger homes seems to be waning says FNB.

For the first time post-Covid-19, equity values (a property’s value minus the amount owed on the asset), generated by sectional title properties, marginally outpaced freestanding homes.

Year-to-date (July 2025) , the supply of new apartments and townhouses rose to 4 866 units (+13.5%) however, pipeline supply remains weak with building plans approved by municipalities down 21.2%. Economist Siphamandla Mkhwanazi says this imbalance is likely to support further price growth in the sectional title market.

“The lag in new sectional title development approvals may reflect developer caution amid regulatory delays, rising costs, and uncertainty around municipal service delivery,” he says. “Overall, current and projected supply dynamics support a sustained upward trend in sectional title property values. These developments reinforce our view of a broader residential price cycle, underpinned by easing inflation, lower borrowing costs, and modest real wage gains.”