Latest news with #BalwinProperties
IOL News
12-05-2025
- Business
- IOL News
Balwin Properties reports significant uptick in apartment sales as interest rates decline
Balwin Properties' De-Aanzicht Milnerton, Cape Town. The group delivered a strong rebound in sales and financial performance in the second half of its financial year to February 28, 2025. Image: supplied Balwin Properties, a prominent developer known for its environmentally efficient and affordable apartment estates, has announced a remarkable rebound in property sales during the latter half of its financial year. Following the commencement of a new interest rate cutting cycle, which has seen rates reduced by a total of 75 basis points since September 2024, the company reported substantial improvements in trading conditions. In the six-month period leading up to February 28, the company recognised revenue from the sale of 1 109 apartments, a significant increase of 73% compared to just 640 units sold in the first half. Additionally, pre-sales surged, with 814 apartments being contracted for future financial periods, up from 520 the previous year. Group CEO Steve Brookes attributed this increase to heightened buyer interest driven by the easing of interest rates. 'The year under review was a tale of two halves, with a strong recovery in profitability in the second six months of the year, supported by ongoing cost-saving initiatives and a strong performance from the Balwin Annuity,' Brookes commented. Despite this positive trajectory, while the interest rate relief was a welcome development, it fell short of expectations, and further interest rate cuts were anticipated for the new financial year. The company's monthly average gross sales rate surged by about 30% since the start of the interest rate cuts, positioning Balwin to expedite construction activities as market conditions improve. Even amidst a challenging economic landscape, Balwin reported an 8% increase in taxed profit to R234 million, with group revenue standing at R2.2 billion—a 6% decline from the previous year, reflecting ongoing pressures in the residential property market. The anticipation surrounding the Government of National Unity formed in June 2024 was overshadowed by political uncertainty, amplified by global economic volatility. Nevertheless, earnings per share experienced a modest increase, rising to 49.74 cents, while headline earnings per share slipped 4% to 45.95 cents. To adapt to the challenging market conditions, Balwin implemented measures to align construction rates with sales, which included better cost engineering, ongoing marketing, and incentives, as well as strict control over operating costs, which remained steady at R351m. The company's gross margin did improve to 30% from 28%, buoyed by contributions from its annuity businesses. Focusing on regional performance, Gauteng emerged as the largest contributor to revenue with 856 apartments recognised, while the Western Cape demonstrated strong demand, with 801 apartments contributing to the sales figures—an impressive 99% of market offerings in the area were recognised in revenue. Despite a subdued performance in KwaZulu-Natal due to planning delays, management expressed optimism for future improvement as progress is made on these challenges. Balwin's directors expect further interest rate cuts will likely stimulate a gradual recovery in the residential property sector. The company is committed to maintaining operational and development cost containment strategies to bolster profit margins and maximise returns on invested capital. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ With a robust pipeline of about 36 000 apartments slated for development over the next 12 years across major metropolitan nodes, Balwin'sdirector said the group is poised to emerge more efficient and focused, optimising operational processes for improved profitability.
IOL News
12-05-2025
- Business
- IOL News
Exploring the surge of co-living spaces and micro-apartments in South Africa's major cities
During the six months leading up to August 2024, Balwin Properties, an apartment developer, encountered difficult trading conditions within the residential property market as a result of high interest rates. Image: Supplied Is the rapid rise of co-living spaces and micro-apartments in Johannesburg, Cape Town and Durban an innovative urban adaptation, or merely a symptom of the country's broken economy? Yael Geffen, CEO of Lew Geffen Sotheby's International Realty, poses this question. This is as developers are aggressively repurposing underutilised buildings into shared living hubs where tenants trade private space for affordability and community. In Cape Town's Woodstock and Johannesburg's Braamfontein, companies like The Student Hub and CoLiv report waiting lists for their R6 500 to R8 000 per month rooms that include servicing and WiFi. Geffen said this is a necessary market correction right now when consumers are drowning in debt, and the vast majority are battling to keep their heads above water. 'For most young professionals, buying a home is an impossible dream at the moment, with the cost of living remaining so high. They're even being priced out of conventional rentals, but they still need proximity to urban work hubs. Co-living fills that gap intelligently by optimising space and reducing costs through shared amenities,' Geffen said. Siphamandla Mkhwanazi, a senior economist, recently told this publication that a city like Pretoria occupies a unique position within the broader South African property sector. He said it benefits its status as the administrative capital, providing stability and a consistent demand for housing. He added others included a diverse economy, encompassing government, education, and research institutions, relatively more affordable/value for money property options compared to other major cities, attracting a range of buyers and renters and was also seeing a growth in the student rental market, due to the large amount of tertiary education institutions in the city. Lew Geffen Sotheby's International Realty said sub-30m² micro-units, never thought of in South Africa's historically spacious housing market, are now said to be selling out in developments like Cape Town's 1 on Albert in Woodstock and Sandton's The Bryant. Prices start at 20% below standard studios, appealing to singles who prioritise location over square metres. Geffen said the success of micro-apartments proves that in the current economic climate, affordability trumps size for many buyers. 'But developers must innovate-think modular furniture, premium finishes, and tech integration-to avoid these feeling like glorified hotel rooms." She says Cape Town's developments tend to be the most successful in the country at the moment, because the market thrives on scarcity. 'Developers convert heritage buildings into chic spaces, achieving an average of 22% gross margins - nearly double Johannesburg's conversions.' Others are new developments like 1 on Albert, offering semi-furnished micro-apartments starting at 21m² that include 24 hour security & CCTV surveillance, biometric access controls, a heated swimming pool, communal recreation area with braai facilities and super-fast internet connectivity. Prices at this state-of-the-art development that is less than 2km from the CBD begin at below R1 million. Despite the buzz, challenges loom, warned Geffen. These include investor scepticism as banks remain hesitant to finance micro-developments, seeing them as untested. Cultural resistance as many South Africans still view compact living as a downgrade and oversupply risks as Durban's Umhlanga corridor already shows signs of co-living saturation. 'The danger is that we mistake a stopgap solution for a cure. Co-living can't replace the need for broader housing reform, including faster planning approvals and incentives for mid-income developments.' Geffen said industry leaders are split on whether this trend will last. While some predict co-living will grow to 15% of South Africa's urban rental market by 2030, others argue it is merely delaying a reckoning with unaffordability. 'The real test is whether these models can evolve beyond student and young professional niches to serve families and older demographics. That's when we'll know if this is truly transformative or just a Band-Aid,' added Geffen Geffen noted key market questions going forward include whether local government entities will relax density restrictions in a greater number of suburbs to enable more micro developments, whether these developments will be the turning point for inner city decay and whether more relaxed density zoning in wider areas will make it more affordable for buyers to get onto the property ladder. 'South Africa's housing crisis won't be solved by one solution alone. 'This trend isn't a total fix, but for now, co-living and micro-apartments are to some extent rewriting the rules of urban residential design and offering a solution to younger professionals struggling to make ends meet with the immensely high cost of living in the country's stagnant economy,' Geffen said. Today's savvy buyers are said to be embracing starter homes like one or two bedrooms, a single bathroom, and enough room to live well without the stress of major upkeep. According to Jonathan Spencer from these homes typically range from 70m² to 116m², offering the perfect blend of comfort, affordability and personal style potential. 'Starter homes are the ideal launchpad for new homeowners. They tick all the essential boxes without overwhelming you financially. Plus, there's more room in your budget to create a space that really feels like you,' Spencer said. Independent Media Property
The Citizen
08-05-2025
- Entertainment
- The Citizen
Mayday, mayday, runners coming through!
Over 250 runners swapped a public holiday lie-in for a morning of active fun last Thursday. They did so as part of the May Day Dash, a community run organised by We Do Creative in aid of the Salt40 Foundation – a local NGO that focuses on youth upliftment through sport. Runners took on the same route used for the popular race which starts and ends at Hops Ballito on the first Sunday of every month. The route is a 5.6km loop which includes a good bit of hill training up Hillary Drive. The Hops run was recently rebranded as Rock Up & Run with new partner Balwin Properties, but the rest of the activities remain the same. 'It's the same format on the first Sunday of every month, starting at 7am, and runners get a free beer, wine or coffee at Hops afterwards,' said We Do Creative's Amanda Howard. 'We also do three fundraisers for Salt40 every year, the first of which was the May Day Dash. The next will be the Run Your Roots event on Heritage Day and Run Out 25 on New Year's Eve.' You can enter via – search Hops to find them. The first 200 entries at all the fundraising runs receive commemorative shirts. Stay in the loop with The North Coast Courier on Facebook, X, Instagram & YouTube for the latest news. Mobile users can join our WhatsApp Broadcast Service here or if you're on desktop, scan the QR code below. At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!
Yahoo
07-03-2025
- Business
- Yahoo
Balwin Properties' (JSE:BWN) Returns On Capital Not Reflecting Well On The Business
If we want to find a potential multi-bagger, often there are underlying trends that can provide clues. Firstly, we'll want to see a proven return on capital employed (ROCE) that is increasing, and secondly, an expanding base of capital employed. This shows us that it's a compounding machine, able to continually reinvest its earnings back into the business and generate higher returns. However, after investigating Balwin Properties (JSE:BWN), we don't think it's current trends fit the mold of a multi-bagger. Just to clarify if you're unsure, ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business. To calculate this metric for Balwin Properties, this is the formula: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.039 = R215m ÷ (R7.7b - R2.1b) (Based on the trailing twelve months to August 2024). So, Balwin Properties has an ROCE of 3.9%. Ultimately, that's a low return and it under-performs the Consumer Durables industry average of 9.3%. View our latest analysis for Balwin Properties While the past is not representative of the future, it can be helpful to know how a company has performed historically, which is why we have this chart above. If you're interested in investigating Balwin Properties' past further, check out this free graph covering Balwin Properties' past earnings, revenue and cash flow. When we looked at the ROCE trend at Balwin Properties, we didn't gain much confidence. To be more specific, ROCE has fallen from 20% over the last five years. Given the business is employing more capital while revenue has slipped, this is a bit concerning. If this were to continue, you might be looking at a company that is trying to reinvest for growth but is actually losing market share since sales haven't increased. We're a bit apprehensive about Balwin Properties because despite more capital being deployed in the business, returns on that capital and sales have both fallen. And long term shareholders have watched their investments stay flat over the last five years. With underlying trends that aren't great in these areas, we'd consider looking elsewhere. If you want to know some of the risks facing Balwin Properties we've found 5 warning signs (2 are concerning!) that you should be aware of before investing here. If you want to search for solid companies with great earnings, check out this free list of companies with good balance sheets and impressive returns on equity. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
