PROPERTY IN BALLITO IS BOOMING
Category News
Regarded as one of the fastest growing towns in the country, Ballito has much to offer the investor. Whether investing in the lower price-bracket for immediate rental returns, or at the middle-to high-end of the market, the long-term outlook is positive.
“Housing demand has been boosted by the introduction of the ultra-modern 'green' hub in the heart of Dube TradePort - situated 20km from Ballito. The King Shaka International Airport, as well as a dedicated cargo terminal, warehousing, offices, retail, hotels and agriculture are occupied by some of the major corporates. Given that this space offers employment opportunities, housing will be in demand for some time to come. As a result, the rental market has reached an all-time high,” says Keith Brown, Jawitz Properties’ Ballito franchise principal.
Gated estates, the largest being Zimbali followed by Simbithi, have sprung up around the town on land that was once sugar-cane farms. Many new hotels and resorts have opened, attracting tourists and buyers to this picturesque part of the KwaZulu-Natal coast.
The supply and demand for rentals has increased in the more expensive areas due to exponential growth over the past five years. However, demand outweighs supply at the middle to lower end of the market.
Sectional-title apartments, vary in price from R700K for a one bedroom unit, and go upwards of R1.3m for three bedrooms. There is high demand from first-time entry-level buyers, creating opportunities for investors.
At the lower-end of the freehold market prices range from R1.3m to R3m but there is a shortage of affordable homes for first-time buyers. As the town grows, and more developments come on stream, the market will be able to meet the demand for affordable housing. The middle-bracket ranges from R3m up to R6m, including the gated-estates. The high-end exclusive coastal estates such as Zimbali, Brettenwood, Dunkirk and the eco-estate Simbithi as well as beachfront properties are realising prices in excess of R20m. The average priced home sells within three to six months, but higher value properties of R5m and above take longer.
Infrastructure prospects look good with the expansion of local private schools that offer tuition from grade 0 up to grade 12. In addition, the National Shopping Centre, currently under construction, will open early next year. Road upgrades from the main N2 highway are completed allowing easier access to the town for locals, shoppers and holiday-makers.
Much interest has been shown in renovating many of the older Ballito homes that overlook the sea. The demand has increased despite the shortage of stock. Renovation gives buyers the benefit of building a modern family home with the bonus of beautiful sea views.
“There are plans afoot to develop the Ballito surrounding areas and many opportunities lie ahead for the short- and long-term development plans of the town. This is a clear indication that Ballito is at the beginning of a growth cycle and a population boom. The town will not be the smaller relative to Umhlanga for much longer,” says Brown.
Author: Jawitz Website
