Balwin H1 HEPS up 44%

Balwin Properties, a mid to upper residential property developer, has reported a 44% gain in first-half headline earnings per share (HEPS) as demand for its properties continues to recover. Founder and CEO, Steve Brookes, shared in an interview with CNBC Africa that the company is seeing strong demand for its various property brands across different market segments. Balwin Properties is known for its focus on good design, great execution, and affordable housing solutions in the South African market. Brookes highlighted the success of the company's green brand, which caters to the lower middle class and offers 'damn good affordable housing.' This segment has experienced the biggest growth, reflecting the high demand for affordable housing solutions in the country. Balwin Properties also offers a classic brand aimed at the middle class and a signature brand for aspirational buyers, covering a wide range of market sectors. The company's development pipeline includes 29 developments with a total of 56,139 apartments, representing a 15 to 20-year development horizon. Balwin Properties is focused on expanding its offerings within its key nodes, which include Swain, Houteng, Omchlanga, and the Western Cape. The company is also exploring new areas for development, such as Nelspruit and Limpopo, to further strengthen its pipeline. One of the key challenges facing Balwin Properties is inflation within the building industry. Brookes emphasized the importance of monitoring construction inflation and house prices closely to ensure they remain in balance. While the current steel prices pose a challenge, he noted that the steel component in their buildings is relatively small. Looking ahead, Brookes expressed optimism about the sector's outlook despite potential challenges like a fourth wave of the pandemic and lingering inflation concerns. He highlighted the company's commitment to vaccination and emphasized the importance of economic stability for sustained growth. Brookes underscored the role of property ownership in creating wealth for clients, particularly those from disadvantaged communities, making the properties a valuable asset for long-term financial growth. In conclusion, Balwin Properties' strong financial performance and focus on affordable housing solutions underscore its position as a key player in the South African property market. With a diverse range of offerings catering to different market segments and a robust development pipeline, the company is well-positioned to capitalize on the growing demand for quality housing in the country.