JSE-listed residential developer Balwin Properties has reported an uptick in developments under construction, showing growing confidence in the housing market as improving economic conditions create a more supportive environment for residential property growth.
The group cashed up 928 apartments in revenue, up sharply from 640 units a year earlier — a surge driven by solid demand and fuelling a 44% rise in revenue, the group said in its results for the six months ended in August.
“Despite global trade risks and weak GDP growth, moderating inflation and the Reserve Bank’s 50-basis-point rate cut have supported consumer demand, improved loan affordability and boosted investment in fixed property,” Balwin said.
Regional trends show the Western Cape overtaking Gauteng as the group’s top revenue contributor, with 486 apartments recognised in revenue in August, up from 295 in August 2024, accounting for 52% of total apartments, it said.
Headline earnings per share rose 29% to 20.91c, while basic earnings per share increased 28% to 20.91c. Net asset value per share grew 8% to 946.03c, and total profit climbed 33% to R102.4m.
However, Balwin has resolved not to declare a dividend for the 2026 interim period due to the board prioritising allocation of capital towards reducing the group’s debt exposure in the current environment.
The group’s loan-to-value ratio fell to 39.3%, down from 40.4% in February, while it ended the period with a cash balance of R303.4m, up from R254.8m in February, while continuing to carefully manage and plan cash flows, it said.
Balwin saw a slight dip in gross margin to 29%, down from 32% in the previous year, mainly because there were no land sales in this period, unlike last year when land disposals boosted profits.
Meanwhile, gross margins on apartment sales held steady at 23%, matching last year’s performance, supported by strong earnings from Balwin Annuity — income from buyers on structured payment plans. Stringent cost management played a key role, helping to drive a 35% jump in group operating profit.
The demand for the group’s Classic apartments at De Aan-Zicht in Milnerton and The Huntsman in Somerset West remained strong, driven by steady sales at De Kuile along the N1 Corridor and Greenbay in Gordon’s Bay, the region’s only Green Collection development.
“Gauteng contributed 390 apartments to revenue, up from 326 in August 2024, a 20% increase in sales volume, with Munyaka in Waterfall continuing to be the flagship development in the node,” the group said.
Independent economist Sandra Gordon noted that, following a sluggish start to 2025, SA’s residential building sector was bouncing back, largely due to a rise in approvals for flats and townhouses.
“In the Western Cape, this momentum is particularly strong, with approvals over the past eight months nearly double those in Gauteng, highlighting the shifting geography of housing demand,” Gordon said.
She noted that over the past 25 years rising construction costs, land scarcity and evolving lifestyle preferences had seen a steady structural shift in new builds toward higher-density formats. Increasingly, South Africans were opting for compact, affordable homes, especially in urban growth nodes.
