Ballito’s permanent population has more than doubled from 12,000 to 30,000 in just over a decade, creating a big rental demand in the coastal town.
Mark Johnson, Seeff’s licensee for the North Coast, said families are semigrating to Ballito for the lifestyle by the dozens – many of whom are still working in other provinces and need to commute to work weekly.
Regular commuting is made possible by the King Shaka International Airport – a 20 minute drive from Ballito.
He added that even though the rental market in the area is buoyant, stock is a major issue – especially with regard to property in gated communities priced from R8,000 to R18,000 per month.
“Many of them choose to rent while deciding where to settle,” Johnson said.
“While we expect more stock to come onto the market in the medium term, rental demand is predicted to increase even further as a result of the growth in the area.
“We are a growing market and this makes it a fairly safe purchase for an investor. There is also good capital growth to be had when investors buy smart – regardless of the price bracket.”
Johnson said that like in many other areas in the country, tenants in Ballito are prepared to pay a premium to live in property within gated communities – sometimes up to between 25% and 40%.