The Half Time Score Is Looking Healthy

Copy by Graham White Managing Director, Local Real Estate

As schools close for the holidays, and many families begin to wind down for the first major break of the year with the Ballito Pro having attracted many holidaymakers to our shores, it is
a perfect time to reflect on the year so far and consider what has transpired in the North Coast property market.

I am happy to report that at the halfway mark; there are many reasons to positive. KZN has been quietly recovering from its low point of the first half of 2023 when the province went into a house price deflation, albeit only 0.5%. But in a market that has seen considerable growth over the last 10 years, that will quite a surprising statistic for some.

Since then, we have been slowing ticking back up and KZN is currently registering a year-on-year house price inflation of 3.3%. This is likely to still grow and it’s a positive upward movement that I predict will continue for a little while longer as the current growth rate is almost certainly higher than that as I write.

It’s been well reported recently that 193 families are moving to Ballito each month and it’s clear that the number of new homes being built will struggle to keep up with this demand. The feeling that the well spoken about “Club Med effect” is starting to come through in reality and with certain infrastructure improvements also now being seen to be being delivered, these factors are also continuing to have a positive effect on house price inflation.

Certainly, all the anecdotal evidence is pointing in the right direction with more asking prices being met again, buyers competing for the same property and just good old activity levels being healthy, even during periods where you would expect a seasonal drop off.

Based on day-to-day figures from my own office (with the disclaimer that this is a localised view, but I’d like to think it is indicative of the wider market) we’ve seen a 56% increase in accepted offers in the first half of this year compared to the same period in 2024 — a significant upswing by any measure, with demand still showing no signs of slowing.

Rental activity, which has surged over the past few years, has also showed an upward trend with an 8% increase over the same period — a healthy performance in a market that may be starting to cool slightly. Notably, high-end rentals remain particularly strong.

So the game’s far from over at half-time when the refreshing oranges are handed out, but so far the Ballito property market is comfortably ahead on the scoreboard.