Ballito's unspoiled nature makes it popular among tenants
Category Chas Everitt Ballito Sales
The residential rental market in KwaZulu-Natal is diverse and each small town and large city experiences its own growth or decline which is dependent on changing market conditions as well as political and economic factors.
The Chas Everitt International sales manager in Ballito, Bernadine Roos, says the town is currently experiencing favourable rental conditions, characterised by high demand for rental homes among both investors and tenants.
"This stretch of the North Coast is attracting phenomenal interest from tenants looking for homes to rent for between R6000pm and R18 000pm.
"And as expected, this trend has come to the attention of savvy buy-to-let investors who are currently investing in the types of properties that tenants prefer.
"In this way, their properties get quickly occupied and they can start growing their wealth by generating a secondary or even primary income from the monthly rentals."
She says the most in-demand homes among tenants are those located in secure estates and ranging in size from one-bedroom starter homes to four-bedroom family homes.
"Alongside this, I've also noticed that pet-friendly properties are rarely vacant and have a low tenant turnover rate."
Best performing town
Citing current market statistics, Roos says rental homes make up about 43% of the total residential stock in KZN, and that Ballito is the best performing town in terms of rental returns.
"This is according to a report from TPNcredit bureau, which took into account both yield and capital growth when arriving at this finding."
The appeal of nature
When speaking to prospective clients about their reasons for choosing to rent specifically in Ballito, she says, many respond that it's because of the beautiful natural environment that surrounds the properties here, such as nature reserves, forests and beaches.
"Today, many people don't want to live in a concrete jungle; they prefer living close to nature where they can enjoy a range of healthy activities such as walking, hiking, swimming and bird watching.
"But more than this, this type of environment promotes a stress-free lifestyle that is far removed from the hustle and bustle of the big cities.
"And an added benefit is that Ballito experiences less traffic congestion than some neighbouring areas such as uMhlanga and Durban North."
A balancing act
Roos says developers who have built and grown the real estate market in Ballito have always been and continue to be very respectful of the natural environment found here and embrace it.
"However, it is important to note that even with this approach, the town has well-established residential, commercial, holiday-letting and retail markets that consistently expand."
The attitude adopted among developers has given rise to renowned and game-changing residential estates such as Simbithi Eco Estate and Zimbali Coastal Resort and Estate, which are great examples of how urban development can coexist with nature, she notes.
"Take Simbithi Eco-Estate as an example - located on 430ha of natural coastline with distinctive tropical vegetation, it is a very popular option for both buy-to-let investors and residential tenants."
The highly sought-after status of Simbithi, says Roos, can be found in the ecological surroundings such as indigenous vegetation, grasslands, wetlands, and panoramic ocean views.
"And while enjoying these surroundings, residents of Simbithi also have access to a number of amenities such as swimming pools, entertainment areas, beach access, a sports field and a Peter Matkovich-designed golf course."
She says selling prices can start from R2,6m for a three-bedroom house to R5,4m for a four-bedroom house. Rentals, on the other hand, can start from as little as R15 000pm for a two bedroom house.
For 2019 and beyond, Roos believes that Ballito will remain a strong rental node and experience rising demand for buy-to-let properties within eco and coastal estates.
Author: Chas Everitt International Property Group