Residential Estate Industry Journal 3 - Page 16

INDUSTRY OVERVIEW Yes, we are an industry – and a powerful one at that. Residential communities are in most cases companies and have to comply with the Companies Act. Other communities, while also not-for-profit, are common law associations. ARC research shows that there are around 4 000 free title developments governed by a homeowners’ association (HOA) and 56 000 sectional title schemes governed by bodies corporate. Our industry houses around six million people and occupies about 9% of developed land in South Africa. Recent research shows that the total property value within organised communities is R1 trillion, which is about a third of the country’s total residential property value. The industry collects around R12 billion annually in levies that are paid by every member of an HOA. Of particular interest are the average monthly levies collected per home, and the percentage split in expenditure on security, landscaping and salaries. The ARC 2016 annual survey conducted on over a hundred estates (below) gives these figures. average monthly levies and budget spend split r 2 500 q R 2 219,47 R 2 158,18 r 2 000 q r 1 963,81 R 2 310 R 1 846,30 R 1 634,99 R 1 500 q R 1 000 q R 500 q R0q National Gauteng Western Cape Average monthly levy (R) KwaZulu-Natal Security spend North West Landscaping spend Mpumalanga Salary spend