Balwin Properties, which launched the largest sectional title development in SA’s history six months ago, said on Tuesday that talks with the government over the rollout of bulk infrastructure such as water and electricity, were still continuing.
The government has committed to providing bulk infrastructure to the multibillion rand Mooikloof Mega City, a public-private partnership, as part of its drive to reviving the economy and create jobs.
The housing project aims to address the so-called gap market, where people earn too much to qualify for free housing but too little to qualify for a bank bond — between R3,500 and 22,000 a month.
Once completed in 2030, the first phase of the housing project will have 50,000 units and aims to address the legacy of spatial planning, created by the previous apartheid order.
Balwin Properties also updated shareholders about the trading conditions and financial performance in the year to end-February.
Headline earnings per share, which is the main profit measure in SA that excludes one-off items, are expected to fall between 18% and 23% from a year ago.
The company delivered 2,550 apartments to clients, which was down slightly from 2,715 apartments delivered in the previous year. That would result in a revenue drop of about 8% year on year, it said.
Demand for one- and two-bedroom apartments remained strong and comprised about 77% of the total apartments, the company said in a statement
The gross margin held steady at 27%, while the average selling price per apartment also remained stable.
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