Keeping up with community scheme living in South Africa: Growth, demand and emerging challenges
24 June 2026 | Brendon Levin and Matthew Kapp
Community Scheme living has become an increasingly prominent feature of South Africa’s residential property market. In the context of ongoing infrastructure challenges and rising security concerns, many buyers are gravitating towards community schemes that offer enhanced security, shared amenities, and a more controlled living environment. Many of these community schemes provide owners various amenities such as 24 hour access controlled security and on-site recreational facilities such as pools and clubhouses as well as outdoor play areas.
Market growth
With thousands of community schemes throughout the country, industry research indicates that estate living remains one of the fastest-growing segments of South Africa’s residential property market, with sustained growth over the past two decades. As early as 2021, sectional title properties accounted for upwards of 30% of all property transfers in South Africa. These schemes form a significant component of the country’s urban housing landscape with some community schemes ranging in size from 2 units to 4000 units.
The size and number of sectional title units registered in South Africa, gives only a brief but eye opening glimpse of the responsibility carried by the industry stakeholders in the management and recovery of the levy income necessary to maintain infrastructure, security, and shared services. Without this levy income, a community scheme, regardless of size will falter and the shared benefit becomes the shared burden.
Price trends
In 2025, Lightstone industry data also showed the differing property price inflations across the various provinces, with Limpopo being the highest at 6,82% followed by the Western Cape at 5,67%. In terms of this inflation, the 2 lowest reported provinces were Gauteng at 2,17% and the Free State at 0,49%.
Infrastructure and demand drivers
Ongoing disruptions to essential services, driven by deteriorating infrastructure and climate-related pressures, alongside rising crime rates, are accelerating the shift toward sectional title living. This trend reflects a growing preference among buyers for environments that offer greater control over infrastructure reliability, enhanced security, and more stable asset protection, thereby safeguarding both lifestyle quality and long-term investment value. This is further supported by industry trends, with the July 2025 First National Bank (“FNB”) Residential Property Barometer indicating that, for the first time since the Covid pandemic, sectional title properties generated higher equity growth than full title properties, at 3.8% compared to 3.7%.
This growth however is not without its challenges. Plans for new development approvals often experience delayed turnaround times due to municipal constraints. The interest rate environment has also played a significant role in buyer affordability. Prime lending rates increased materially between 2020 and 2024 before stabilising more recently, currently sitting at approximately 10.25% as at March 2026.
Regulatory environment
The past several months has also seen the community scheme sector come under scrutiny due to regulatory compliance requirements, challenges within the Community Schemes Ombud Service (“CSOS”), delays in the Fidelity Fund Certificate (“FFC”) renewals by the Property Practitioners Regulatory Authority (“PPRA”) for managing agent firms, and the potential introduction of regulations relating to short-term letting in the Western Cape, largely driven by increased Airbnb activity, are all contributing to a more complex operating environment.
Governance and education
Furthermore, many industry professionals and role players within this sector have also continued to advocate for and highlight the need for continued training and knowledge sharing between sector role players such as managing agents, trustees and buyers. Community scheme living also introduces additional financial and governance considerations. Monthly levies are payable over and above municipal charges, and residents are required to adhere to scheme rules and conduct regulations. These may include maintaining external aesthetic standards, restrictions on short-term letting, and limitations on occupancy levels per unit. In addition, many schemes continue to face financial pressure due to levy non-payment, which places strain on overall scheme sustainability and impacts all owners. Community schemes are also subject to annual financial audit requirements and must be registered with CSOS, including compliance with prescribed reporting and levy obligations.
As the sector continues to expand, the importance of effective governance, financial management, and regulatory compliance has become increasingly critical to ensuring long-term sustainability.
Looking ahead
Whilst there is no crystal ball to determine what 2026 will mean for the South African community scheme sector and what challenges this will face, as the country continues to battle with corruption, infrastructure backlogs and high levels of crime, it is evident that based on historical industry trends and the continued growth and demand for this specific type of asset class. This trend suggests that buyers continue to value the relative stability, security, and managed environment that community schemes provide.
As a result, the sector is likely to see continued focus on improving governance standards, streamlining compliance requirements, and upskilling key role players - particularly first-time buyers - who are often making one of the most significant financial investments of their lives.
This evolving landscape further highlights the growing need for integrated financial, legal, and operational solutions to support community schemes and ensure their long-term success.
Contact us today on 061 536 3138 or at info@tvdmconsultants.com if you require more information on the above.