While freestanding homes saw stronger price growth in 2025 (+4.0% vs +2.7% for sectional title), investors are clearly favouring sectional title properties.
According to ooba Home Loans, 66% of individual buy-to-let investors opted for sectional title properties in 2025. This preference has steadily grown over the past five years.
Why Sectional Title Appeals to Investors
- Lower purchase prices
- Reduced maintenance responsibilities
- Better security features
- Strong demand from tenants
- Attractive yields in high-density areas
Impact on the Rental Market
As more investors enter the sectional title space:
- Rental stock in complexes and apartments increases
- Competition may stabilise rental growth in certain nodes
- Tenants benefit from more choice and modern amenities
However, high-demand coastal and urban areas are likely to continue experiencing tight rental conditions, particularly where lifestyle and security remain key drivers.
For landlords, strategic property selection and professional management will be essential to maximise returns.
