The popular holiday town of Ballito is situated just 40 kilometres north of Durban along the KwaZulu-Natal shoreline.
The town was established in 1954 and what started out as a quaint coastal town, soon became the sought-after holiday destination that you see today. The first advertisements inviting potential property investors to the Ballito Bay area had property priced in the region of about R790. By the early 1960’s Ballito had grown extensively and stretched from Willard Beach to Clark Bay, Salmon Bay and Port Zimbali, attracting numerous buyers to its shores, increasing the area’s status and worth.
Adrian Goslett, CEO of RE/MAX of Southern Africa, says: “The King Shaka Airport, which is situated just ten minutes away from the town, in addition to the N2 interchange, has ensured that Ballito was earmarked as the biggest growth area in KwaZulu-Natal. Now boasting all the top-notch amenities one would expect from a cosmopolitan town, the development in the area has been incredible in terms of new shopping centres, hotels, restaurants, yet it still maintains its picturesque coastal village charm.”
With a substantial commercial business park neighbouring the N2 motorway, Ballito’s large business sector has also grown and become a dominant financial nucleus of the northern KwaZulu-Natal coastline. With a full service industry within the commercial business park, Ballito now caters to an emerging business community. The region’s investment arm, Enterprise iLembe, has been formed to develop both Ballito and the iLembe area as the preferred investment destination of choice.
Ballito is often described as the Caribbean of the north coast and it has become a firm favourite among South African holiday makers and property investors alike. It is a thriving community that offers buyers some of the best schools which are situated both in Ballito as well as in the surrounding areas such as Umhlanga, Stanger and Tongaat.
Area property information
Statistics supplied by Lightstone, a property statistics and information provider, reveal that the current market stock of property available in the area consist of 40.51% estates, 32.32% freestanding homes and 27.18% sectional title units. As many as 31.07% of recent buyers in the area are between the ages of 18 and 35 years old, while 39.81% are between the ages of 36 and 49 years old.
Goslett says that even though the recession had a severe impact on property pricing, Ballito has held its own compared to other parts of the country. The price for a freestanding home is approximately R1, 659 million, while the average price of a sectional-title unit is around R1, 276 million. An entry-level property such as a two-bedroom apartment will cost in the region of between R800 000 to R1,1 million, while mid-level homes with special features could fetch a price tag around the R3,5 million bracket and top-end homes could sell for anything between R6 million and R14 million mark, depending on location and features.
Demand for property
According to Goslett, demand for property in Ballito has remained consistently high over the past few years and the market continues to perform well among investors. “Sales volumes in Ballito have increased since the beginning of 2011. A large portion of the buyers to the area are young professionals who are currently working abroad and are investing in property in South Africa while the conditions are favourable towards buyers. The remaining buyers are divided equally among families looking to move into Ballito as a lifestyle choice and business people looking to purchase second homes for holiday purposes,” says Goslett.
According to Goslett, gated security estates are the first choice among the young professionals and families wanting to purchase in the area. This is due to the security and lifestyle benefits that these type of properties offer. He explains that this is not just a trend found in Ballito but in all parts of the country. “Gated estates are highly sought-after and therefore generally provide a good return on investment,” says Goslett.