VALUATION OF…
Sectional Title
Individually titled residential or commercial units within a sectional title scheme, valued by unit against comparable unit sales.
Content status: Methodology and evidence log — Sources, Caselaw and Market Information are added incrementally.
Methodology
Sectional title units are valued primarily using the Direct Comparison Method, applying adjustments for floor level, aspect, size and finish against sales of comparable units within the same or similar schemes. Where let, an Income Capitalisation cross-check may be applied to the achievable rental.
The Big Five framework applies only loosely to individual sectional title units, since each unit is valued independently rather than as part of an income-generating whole; where relevant, the valuer should have regard to the scheme’s body corporate levies, reserve fund adequacy and any special levies, as these directly affect net achievable income and marketability.
A Direct Comparison cross-check against recent sales within the same scheme is the most reliable test of value; where insufficient scheme-specific evidence exists, sales from comparable schemes in the same node should be used, adjusted for differences in levy structure and amenity.
Caselaw
Case law, regulatory rulings and expert-determination disputes relevant to valuing this asset class. Each entry cites its source and summarises the practice implication for valuers — this is not investment, financial, or legal advice.
The Evidence Log is for VDH Members
The Evidence Log for Sectional Title — sourced sales, disposals and rentals with Valuer’s Lens commentary — is included in VDH Membership: from R125/month for SACPVP candidates and students, R399/month standard. All prices include VAT.
The methodology and case law on this page remain free to read.