There is good value to be had now in Ballito, the North Coast town that has bloomed as the darling of upcountry holiday home buyers.
"But," says Virginia du Toit, principal of the local Aida office, "it takes an investor who can read the market to appreciate the bargains currently on offer".
She explains: "Ballito, like many other coastal markets, is under severe pressure. Disposable income among homebuyers is very limited and even more so in the second home market. Traditionally, Ballito buyers are from upcountry but with the high cost of living, those 'weekend getaways' are becoming too costly.
"The second home market is often also more affected by market confidence than interest rates and confidence is very low at the moment. Brave investors, however, will be very aware of the underlying value of properties here."
She says some sellers are highly motivated to sell and are pricing their properties accordingly. "This is a healthy development, since properties are being offered at prices that the market will bear.
"Some sellers have affordability issues while others are selling up and emigrating, In both these classes, sellers are under pressure to set realistic prices. For example, we are currently marketing a luxury penthouse with four bedrooms and stunning views at R1,7m, well down from the R2,5m the owner initially wanted."
Prices for holiday units now start at around R750k, which will buy a sectional title unit with two bedrooms. Top prices in this sector are around R3m.
Prices in the residential sector start at around R1,5m for family homes. There is very good supply in the middle market where prices typically range between R3m and R5m. Top residential properties start at prices of R10m but Du Toit says they are very rarely offered for sale.
Issued by Aida National Franchises
Aida head office: 012 682 9600
Contact: Young Carr
Aida Ballito:032 946 2844
Contact: Virginia du Toit