Ballito, North Coast, Land For Sale

One of the last remaining sea-facing sugar farms in close proximity to the beach and the burgeoning area of Ballito, this magnificent property has been developed into a sub-tropical residential paradise. Over 75% of the sites of offer in phase one, have been snapped up.

These range in size from 700m² to 1900m², with prices from R635 000 to over a million. Stands surrounded by coastal forest, glade forest or grasslands have magnificent mountain views, dam views or breathtaking sea views.

Here your new neighbours will include the most beautiful of South Africa's flora and fauna. Stroll along a historic 3km walking trail leading to bird-hides and forest walks or down to the beach only 600m from the estate boundary. Live in a perfect balance with our precious wildlife heritage.

Are you involved in commercial or residential property development?

Residential development.

What are the major risks facing developers in the current market? How will these translate for buyers?

As in all bear markets, sentiment overtakes rationality. In other words, negative emotions cloud rational decision-making. This is, in fact, the best time to be acquiring property.

Fundamentally, the South African property market has never been in a stronger position to deal with a downturn than now. Developing markets around the world are where the economic growth is happening, and international investors have their eyes on us. South Africa is the gateway into Africa; it has First World infrastructure and world-class facilities. Our land and property is cheap by international standards; we have a growing, aspirant middle class and a wonderful marketing opportunity in 2010.

Developers have had four to five years of excellent conditions – now with the price of development land, steel and other building materials rising so sharply, combined with negative economic factors (NCA, higher interest rates, food and petrol price hikes etc.), it seems this is a market in correction.

How do you see that affecting the face of the new developments that will come on line in the next two to three years?

New developments will be leaner and meaner – as always happens after a market downturn. Property and land developers will have to ensure that they have an end-user market and not rely solely on investors, and they will have to gear the developments conservatively.

Having said this, though, we are fortunate that we have some of the most conservative bankers in the world, who still insist on development pre-sales. This will mitigate the amount of developments that may foreclose during a downward cycle.

What would you advise buyers to consider when looking at new developments in the current market?

Look at the developer’s track record, enquire about the level of end users – be they residents or tenants – and shop around. Understand the different products on the market and what each development has to offer.

Which of your current developments offers the best value for money to buyers? Why?

Brettenwood Coastal Estate at Sheffield Beach on the Natal north coast. It is only 16 kilometres from the new King Shaka Airport and Dube TradePort, close enough for a 10-minute drive but far away enough to be out of any flight path. It is 20 minutes from Gateway, 35 minutes from a major new Dubai-funded resort and tourist development – which is planned to attract over 100 000 tourists per month – and only one hour from Richards Bay. Within a six kilometre radius there are four championship golf courses, a 25 000m² shopping centre, two fantastic schools and a state-of-the-art private hospital.

It is also within walking distance of the magnificent Dolphin Coast, with Salt Rock and Sheffield Beach on its doorstep. At present, sites can still be purchased from R700 000 and up. This kind of price tag is unheard of in Umhlanga or anywhere on the Cape coast. Once the airport is operational in early 2010, there will be substantial appreciation in this area to the point that most average South Africans will no longer be able to afford property in estates like Brettenwood.

What deposits do you require upfront from clients for them to secure properties-units in new proposed developments?

Generally, 10 to 20 per cent, depending on bank lending criteria; never less than 10 per cent, though.