Balwin Properties slashes development pipeline by 30%
The country’s largest sectional title developer has had to cut back in a slow economy
Balwin Properties, SA’s largest developer of sectional title apartments, has cut its pipeline by nearly a third as it adjusts its projections in a weak economy, FD Jonathan Weltman says. Over the next eight years, the group would now develop 28,000 apartments and not the 40,000 apartments it had originally envisaged building. The majority of these would be for sale but a portion would be rented out so that Balwin could earn annuity income. Weltman said the gross profit margin on the group’s sales had come under pressure in the year to February, and that while there was optimism the economy would rebound as President Cyril Ramaphosa established a cabinet following the ANC’s election win last week, growth would only gain momentum in 2020.
“Balwin is operating in a very tricky environment. There is demand for our products but the economy isn’t soaring and that means our customers are feeling some pressure given that salaries aren’t rising. This is showing up in our margins but ...