BUY SECTIONAL PROPERTY FROM THIS FRIDAY

MBABANE – The wait is over.

The Sectional Titles Act (Amendment) Act, 2018, and Regulations 2020 come into force this coming Friday. The Act and Regulations pave way for the ordinary liSwati to own separate, single sections of buildings. Sectional title simply describes the separate ownership of a unit within a complex or development. This is in contrast to a freehold, or ‘full title’, where you purchase full ownership rights to a property, including the building and the land upon which it’s built. Minister of Housing and Urban Development Prince Simelane has made the announcement through Legal Notice No. 88 of 2022 published in the Eswatini Government.

Market

Analysts had always suggested that an average residential property in Eswatini was typically priced higher when compared even with exclusive suburbs, such as Sandton in South Africa, mainly due to the absence of a functional competitive sectional title market. Developers were anxiously awaiting the introduction of sectional title. Not only will this unleash opportunity in the kingdom but most importantly, it will also allow home ownership to those for whom owning a home seemed impossible in the past. All necessary amendments had been effected on the Act itself and the Sectional Titles (Amendment) Act was passed in February 2018. The major hurdle that needed to be overcome was the promulgation of the Sectional Titles Regulations.

The Sectional Titles Board concluded drafting the same and it was vetted and approved by the office of the Attorney General at the end of May 2019. Cabinet also approved the Sectional Title Regulations. As such, they were submitted to Parliament. Parliamentary processes conceivably included public consultations, so it  was difficult to provide an accurate timeline for these regulations to pass into law. The Ministry of Housing and Urban Development had stakeholder engagement on the Sectional Titles Act Regulations.  

Consultations

During the consultations. the minister, said he was hopeful the Sectional Titles Act would stimulate the property market in Eswatini. Meanwhile, neigbouring South Africa is one of the countries where sectional title is popular. Thursday. Sectional title properties are said to be more popular than ever in Gauteng suburbs and indeed around South Africa. The demand for these types of homes continues unabated, despite the inflationary pressures currently felt by many households. The latest Pam Golding Residential Property Index, which provides an in-depth analysis of property trends in South Africa, points out that nationally in 2000 just 10.9 per cent of residential building plans passed were for sectional title properties; in 2015 this figure was 38 per cent. There are a number of reasons for the rise in the sectional title property market in the Gauteng Province and at the national level, particularly over the last 10 years. Among these are the fact that sectional title developments have begun to be perceived as offering good value for money and sound security.

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