South African Sectional Title Schemes Face Collapse Amid Rising Levy Defaults

South Africa is experiencing significant challenges in its sectional title schemes as many community schemes face collapse due to rising levy defaults, leading to issues like interrupted water and electricity supplies and threats to sewage and garbage services. Legal recourse such as Section 66 applications allow creditors to seize movable assets of owners who default on payments, but unlawful actions like disconnections or restricting access are prohibited. Concurrently, the property market is shifting with buyers favoring lifestyle-driven coastal areas, especially in the Western Cape, while traditional economic hubs like Johannesburg and Durban are seeing declines due to factors like economic uncertainty, poor municipal services, crime, and semigration. KwaZulu-Natal's coastal regions suffered significant setbacks after the 2021 riots and 2022 floods, impacting buyer confidence and sales volumes, though areas like Umhlanga and Ballito are showing recovery signs. Meanwhile, luxury estates like Zimbali in KwaZulu-Natal highlight ongoing development with a focus on conservation and quality of life, offering a contrast to struggling schemes and urban markets. These dynamics collectively illustrate a complex real estate landscape shaped by economic, social, and environmental factors across South Africa.