Ballito becoming the new Cape Town

The migration of permanent residents from the country’s major cities to Ballito has doubled from approximately 12000 in 2005 to almost 25 000 in 2012.

“This is not surprising,” says Keith Brown, principal at Jawitz Properties, Ballito. “The North Coast of Kwa Zulu Natal is the new ‘Cape Town’ when it comes to property.  It’s about a preferred location because of the many opportunities for business and local economic growth. The King Shaka International Airport continues play its part for easy access to KZN,”  he says.
Investors wanting good yields and the influx of families relocating to enjoy the coastal lifestyle, are boosting the buyers’ market. Secure estates make up the majority of sales in Ballito as the properties are newer and security and quality of life are priorities.

Interestingly, the number of realistic sellers whose properties are priced in line with market demands has increased over the last couple of months. On the other hand, there are still sellers who ignore prevailing market price trends. Consequently, these properties remain on the market for a good twelve months and in some cases even longer.

“A well priced property will always sell first as buyers tend to be in touch with market conditions. However, many buyers discover they are unable to get the required bond and in many instances have to resort to renting.  Statistics show that 80% of buyers with good cash deposits obtain mortgage finance easily. However, only 50% of those needing larger bonds are successful.
Admittedly, bond approvals have increased during the last 18 months, thanks to the banks’ more lenient attitude to lending.  This is expected to continue for the remainder of 2012.

Construction is booming along the North Coast, as new developments mushroom in Ballito and Salt Rock. Sea Breeze in Mt Richmore, Salt Rock, is a case in point. Since the launch in December 2011, 40% of the units have already been sold. Construction is expected to start by the end of April 2012.

Demand for buying off-plan in gated-estates is increasing particularly among those who are looking to buy land and build their own homes. They, of course benefit from savings on transfer duty and end up with equity in their immovable asset on completion of construction.
The number of registered deals at the deeds office for 2011 was 157. So far this year, there has been a slight improvement on 2011 figures with the average sales price for the first quarter being up by 9%.

There is still an abundance of stock available ranging from R700 000 for small apartments going up to R50-million plus. The demand in the R1.8-million sales bracket is increasing, simply because of bond affordability in this bracket.
“The rental market is buoyant and the demand has driven up prices. Indications are that this will continue due to supply and demand. Many of the new developments are getting over 8% and upwards on rentals. Previously the return on rental income averaged 5%,” he says.

  Comment on this Article

  Please login to post comments

Post to my facebook wall
Characters remaining

    Latest Property News
    • 21 Nov 2017
      The buying process is over, and the moving truck has delivered your household goods to your new property. Now it’s time to unpack and turn your new house into a home.
    • 21 Nov 2017
      When an offer to purchase a property is signed by both buyer and seller, this constitutes a binding agreement or “Deed of Sale” between the two parties. However, in most cases the “standard contract” might not be enough to cover all the specifics pertaining to the sale. The agreement may require some additions or alterations to clauses, which needs an expert hand in the drafting of such
    • 21 Nov 2017
      As more and more South Africans look to invest in property abroad, Spain is offering them one of the best deals in global real estate.
    • 20 Nov 2017
      Since 2012, sectional title complexes have been leading the South African property market, not only in terms of price growth, but sales volumes as well. Remaining relatively strong, even in the face of 2017’s political and economic turmoil, experts say this market segment could offer valuable insight into South Africans’ property purchase priorities.
    • 20 Nov 2017
      Regardless of whether you are purchasing your first start-up home, downsizing or moving in with roommates, finding ways to maximise small spaces can be a big advantage, says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa.
    • 20 Nov 2017
      Property valued at approximately R1 billion is on High Street Auctions’ sales floor during the month of November, including the much-anticipated sale of the Tshwane Mayoral Residence and the land occupied by one of South Africa’s oldest operating gold mines.
    • 17 Nov 2017
      FWJK has announced the launch of its latest residential brand, the Lil’ Apple, which will be launched simultaneously in two developments in Cape Town and Umhlanga totaling 600 apartments. The Lil’ Apple is set to be a brand of FWJK’s New York style apartments which will be rolled out nationally.
    • 17 Nov 2017
      It’s been a tumultuous year on many fronts, with socio-political uncertainty setting the tone for much of South Africa’s economic activity yet despite this and seemingly counter-intuitively, the residential property market has held up well.
    Subscribe to the MyProperty Newsletter

    Last Name  
    Email Address  
    Email Frequency
    Share this Page

    For Sale Property
    Rental Property
    More Options
    Connect with us