Are three bedroom apartments worth it?

In South Africa, luxury is still associated with large yards and proportionally large property sizes but with the increase in population densities in metro areas, residential apartments might become a more feasible living option.

In Sandton, for example, the average freehold property is valued at approximately 150% more than a sectional title property.

"Even though the amount of bedrooms and bathrooms in these two types of properties generally differ, we expect a large portion of the price difference to remain when comparing like-for-like properties due to sought-after luxuries like a big lawn, a swimming pool and solitude that is generally associated with luxury freehold properties," says Hayley Ivins Downes, Head of Property at Lightstone.

A two bedroom house with a small yard of less than 900m² will only cost about 10% more than a two bedroom flat or apartment if you are looking to live in a relatively sparsely populated area. Moving to a more densely populated area increases this premium to about 20% but can reach as high as 40% in towns like Sandton and Randburg.

A larger yard of between 900m² and 1600m² is going to cost a lot more regardless of how many bedrooms are needed. Moving from a two bedroom apartment to a two bedroom house with a larger yard will in general cost no less than twice as much, while a three bedroom house will cost about 45% more than its sectional title counterpart.

"A good potential buy if you're not house-hunting in one of South Africa's luxury suburbs, is a freehold property with a smaller yard. Freehold houses with three bedrooms and a yard smaller than 900m²² will cost almost the same as a sectional title but with the added benefit the yard brings," explains Ivins Downes.