Residential Estate Industry Journal 4 | Page 12

ARC ANNUAL SURVEY RESULTS ARC’S INDUSTRY STATISTICS Homeowners’ Associations (HOAs) and community associations are a stand-alone industry, and a very powerful one at that. Research shows that there are over 3,000 free title developments governed by an HOA and over 56,000 sectional title developments governed by bodies corporate in South Africa. This industry is home to more than five million people and occupies almost nine percent of developed land in South Africa. In-depth research into the industry shows that the total property value within community associations is close to R1 trillion, which forms around 20 percent of the country’s total residential property value. Average Monthly Levies and Budget Spend Split As a whole, the industry collects on average more than R12 billion annually in levies that are paid by every member of the HOA. Results from the ARC 2017 Annual Survey show that average monthly levies per home are R2 262,90 nationally (a 15 percent increase from 2016), while the national average budget spend split equates to 37 percent on security (up four percent from 2016), 11 percent on landscaping (down six percent from 2016) and 22 percent on salaries (up one percent from 2016). Gauteng and Mpumalanga show the highest spend on security (44 percent), Western Cape shows the highest spend on landscaping (14 percent) and Mpumalanga also shows the highest spend on salaries (29 percent). The province that spent the most on items that are not related to security, landscaping or salaries was the North West Province (39 percent). Average Monthly Levies and Budget Spend Split R3,000.00 R2,500.00 R2,781.70 R2,683.22 R2,254.00 R2,262.90 R2,070.57 R1,822.01 R2,000.00 R1,500.00 R1,000.00 R500.00 R National Gauteng Average Monthly Levy PAGE 10 Western Cape Security Spend KwaZulu-Natal Landscaping Spend North West Salary Spend Mpumalanga Additional Spend