Ballito a Boon for Resilient KZN Property Market
KwaZulu-Natal has emerged as one of South Africa’s most resilient and well-performing residential property markets.
Staying the course amid the headwinds
of a global pandemic, civil unrest and extreme
weather, KwaZulu-Natal has emerged as one of
South Africa’s most resilient and
well-performing residential property markets.
It is being driven in large part by the demand for homes along the KZN North Coast, especially if located in a secure, lifestyle estate, says Bradd Bendall, BetterBond Head of Sales.
With its balmy, subtropical climate and a laid-back, coastal lifestyle, KZN has become a very popular place to live. Ballito and surrounds, including Salt Rock, family estates like Seaward Estate, Simbithi Eco Estate, Dunkirk, Brettenwood Coastal Estate and Palm Lakes, have been transformed into significant growth nodes, says Kim Peacock, broker owner of RE/MAX Dolphin. These areas have also been earmarked for further development and work has already started on upgrading main roadways, she adds. Located less than half an hour from King Shaka International Airport, these areas offer tremendous access and convenience.
Traditionally seen mainly as holiday destinations, coastal villages like Ballito, Salt Rock and Sheffield have become sought-after primary residences. Peacock explains that they appeal to different markets: buyers of holiday homes and purchasers of primary residences. This dual demand has seen house prices in these areas increase steadily year on year, offering existing homeowners some very positive returns on their investments.
The addition of new primary schools and large-scale development and refurbishment of existing locations, has helped to create a vibrant and varied housing market. Property24 data shows that the largest portion of buyers in recent months – 32.6% – were between the ages of 36 and 49, suggesting that many of them were looking for family-friendly homes. Retirees make up almost one-third of all buyers and there is growing interest from younger buyers aged 18 to 35, particularly in sectional title properties, adds Bendall.
Peacock observes that Ballito and surrounding areas are also home to some of South Africa’s premier lifestyle estates. Lightstone reports that almost 45% of all homes in Ballito are located in estates, including Zimbali, Simbithi and Dunkirk. This is one of the reasons why this part of KZN attracts buyers from around the country. Many of them semigrate from Gauteng, or even other parts of the province, to settle in one of the luxury estates along the North Coast, says Bendall. So great is the demand for estate living that the average price of a freehold home in one of these estates is 168% higher than other homes, according to Lightstone.
Ballito’s sectional title market is performing well, with average prices increasing from R1.7 million in 2020 to just under R2 million this year. Just over 60% of all homes in Ballito are sectional title properties. “Many of these are buy-to-let properties that are used as rental units to cater for holiday visitors as well as long-lease tenants,” adds Bendall. “The future for the KwaZulu-Natal North Coast is looking bright for investors and homeowners alike,” concludes Peacock.