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.
16/11/2023
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.