Why sectional titles are winning the rental race in Midrand
Midrand-based property experts unpack why sectional title living is dominating the rental market in Midrand, and what landlords must do to stay competitive.
As South Africa’s residential property prices continue their upward climb, landlords and tenants alike are being urged to better understand the realities of the rental market, particularly in fast-growing urban nodes such as Midrand.
According to Statistics South Africa’s residential property price index (RPPI) for March 2025, annual national residential property price inflation rose to 5.2%, up from a revised 5.1% in February.
Month-on-month, prices increased by 0.5%. The Western Cape was the biggest contributor, recording 9.5% inflation and contributing 3.7 points, followed by Gauteng at 1.7%, contributing 0.6 points.
Midrand continues to position itself as one of Gauteng’s most attractive rental nodes.
Speaking on the importance of educating the local community on residential rentals, Midrand-based real estate agency Millennial Realty Gauteng confirmed that demand, particularly for sectional title properties, remains strong.
The agency’s principal property practitioner, Ernst Reyneke, said: “For many property owners, renting out a home or investment property can bring financial uncertainty, especially when tenants fall behind on payments.”
Reyneke said that areas such as Noordwyk, Halfway Gardens, and Vorna Valley are experiencing notable growth, largely due to their strategic location and competitive price points. “Sectional title properties are, without a doubt, the most sought-after.
This is due to affordability, the amenities on offer, and the convenience that comes with the daily running of a complex or estate.”
The sectional title rental market is largely driven by young professionals aged between 25 and 40. Reyneke explained that newer developments are reshaping tenant preferences, often at the expense of older properties.
“Young people are looking for convenience. If new developments offer that, then older properties tend to suffer the most. Amenities, such as gyms, pre-schools, concierge services, swimming pools, and safe play areas, play a major role in tenants’ decision-making.”
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Sharon Letsoalo, a candidate property practitioner at Millennial Realty, said Midrand continues to accommodate both lower and middle-income earners through a variety of developments.
“We see Midrand as one of the cities that caters to low-income earners through subsidised property developments. This ensures that no one is left behind as development takes place.”
She added that while Midrand is perceived as a high-value rental area, this perception is not without merit. “A standard apartment outside Midrand may cost slightly less than one in Midrand, largely due to the area’s infrastructure and accessibility.”
The agency also cautioned property buyers and investors against common mistakes that often lead to distressed sales. Madimetja Maja, a non-principal property practitioner, stressed the importance of market research before committing to a property investment.
“Some owners price their rental properties based on their bond repayments, levies, and municipal costs, which is incorrect. Rental pricing is determined by the market, not by the owner’s expenses. The rental income does not necessarily have to be higher than the bond amount.”
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