17 Oct 2012
The town of Ballito is becoming more of a permanent residential destination, rather than just a holiday location.
The coastal areas north of Durban continue to attract home buyers and are further boosted by commercial growth in areas such as Umhlanga, but the demand for housing is spreading even further north, says Clive Greene, Pam Golding Properties area principal in Ballito.
Ballito is easily accessible to the King Shaka International Airport, and has large estates, such as Zimbali and Simbithi, Brentonwood and Dunkirk. Greene says it has evolved into a prime residential area among families and those commuting to work in Umhlanga Ridge or La Lucia Office Estate.
He says the market in coastal towns is determined by its location, and by what industry is nearby. The fact that Ballito is becoming an area of primary residence bodes well for the property market, as it is less susceptible to the changes experienced by the leisure market.
Ballito and the surrounding areas are becoming residential rather than holiday towns although the mix is presently still 50:50. Many more businesses have opened up in the last five years, which includes three shopping centres, and these have attracted more employees, Greene says.
He adds that the estates of Zimbali and Simbithi have been well marketed and are proving popular, while new gated communities are becoming available and offer an exclusive lifestyle in a secure environment.
Greene says that while this market has been impacted by the recent economic trading conditions, there has been an increase in enquiries for residential property in the area, as buyers and investors are noticing that the current market offers sound buying opportunities. “By its very nature, coastal property around the world is both desirable and limited, which ultimately translates into limited availability coupled with price appreciation.”
Greene says even though Ballito is considered an upmarket area, the demand is coming from the lower end, with homes in the R800 000 to R1 million price range being the most sought after. This can be seen by the success of some of the affordable developments, where one bedroom apartments are R559 000 and range up to R1 million for a three bedroom unit.
Other estates offer units from R3 million to R10 million, while the beachfront properties and homes in Zimbali range from R1.8 million to R12 million for apartments, and homes up to R40 million.
He says the proximity of Ballito to the airport has certainly positioned the town for growth, both from a commercial and residential perspective. “There is no doubt we are seeing this area targeted as being attractive for long-term investment. Town planning has taken into account growth for the next 15 years, with this now moving beyond planning and being put forward for development in the long term.”
He says there is a need for more affordable housing, which is a factor being considered by developers. Land is expensive which makes it difficult for developers to build lower priced developments.
For those wanting to acquire leisure property, a weekend retreat or a future or imminent retirement property, there are beachfront apartments, homes and apartments in the gated estates, which offer a secure environment for a lock-up-and-go home with quick access to the airport.
“There are great beaches and festivals which have become synonymous with Ballito, creating an ideal place for young people to holiday."
"There is a good demand for holiday rental property in the area, which at least takes care of running costs for your investment,” Greene says.
He adds that Ballito has a wide range of property, while Zimbali and the beachfront offer houses of up to R40 million. It is easier to say that property is being valued on a square metre basis with prices in Zimbali ranging from R40 000 per square metre to R15 000, while beachfront homes are from R12 000 to R30 000 per square metre, and the suburbs from R8 000 to R15 000.
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