When it comes to Real Estate, one term that often arises is “Levy price per SQM (square meter)”. Levy price per sqm is calculated by taking the total levy, including any special levies, security levies etc. and dividing it by the sqm under-roof.

The Primary Levy is calculated by the body corporate by taking the total budgeted amount and multiplying it by the participation quota which is a percentage

What is Levy Price?

A levy, in the context of property, typically refers to a fee charged by a homeowners’ association (HOA) or a strata management organization for the maintenance and management of common areas and shared facilities. This can include expenses for landscaping, building repairs, insurance, and utilities.

Key Components of Levy Pricing

Common Expenses: These are costs associated with shared facilities, such as swimming pools, gyms, and parks.
Maintenance Fees: Regular upkeep of communal areas, including cleaning and landscaping.
Reserve Fund Contributions: Savings set aside for future repairs and replacements.
Calculating Levy Price per Square Meter
The levy price per square meter is determined by dividing the total annual levy by the total area of the property, measured in square meters.

Formula:

Levy Price per sqm

Total Monthly Levy
Total Area in sqm
Levy Price per sqm= Total  Monthly Levy/ Total Area in SQM
​

For example, if a property has an monthly levy of R4,000 and covers an area of 100 square meters, the calculation would be:

Levy Price per sqm

Levy Price per sqm= R12,000/400 =
R30 per sqm

Tips for Managing Levy costs

If you find your property’s levy excessively high, it may be worth exploring other communities or types of properties. Whether you’re budgeting for a new home or evaluating an investment property, keeping a close eye on levy prices can significantly impact your financial health.

By staying informed and actively engaging with your property management, you can ensure that your levies are fair and beneficial for your community.