Balwin rides market recovery with strong first-half growth

• Revenue surges 44% to R1.2 billion as demand rebounds.
• Profit up 33%, earnings per share up nearly 30%.
• Green innovation, annuity growth, and solid regional performance lead gains.

Building for growth in a recovering market

‍Balwin Properties, one of South Africa’s largest listed residential developers, has delivered a strong set of interim results for the six months ended 31 August 2025. The company, known for its energy-efficient, lifestyle-focused apartment developments across Gauteng, the Western Cape, and KwaZulu-Natal, says the first half of its financial year marked a clear turning point in the residential market.

Balwin’s model blends property development with lifestyle integration offering residents secure, high-quality apartments supported by green technology, on-site amenities, and digital connectivity. The group also earns recurring income from its Balwin Annuity division, which manages services such as internet, solar, and rental operations.

Performance highlights

‍Revenue rose by 44% to R1.2 billion, driven by the handover of 928 apartments, up from 640 a year earlier. A further 1 028 apartments were pre-sold and will be recognised in future financial periods a sign of growing buyer confidence as inflation eased and interest rates moderated. Operating profit climbed 35% to R156.6 million, while profit after tax improved 33% to R102.4 million. Headline earnings per share increased by 29% to 20.91 cents.

Chief Executive Steve Brookes said the results reflect the company’s resilience and adaptability in a shifting market.

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“Our performance is very encouraging, supported by lower interest rates, improved affordability, and renewed investor sentiment. While it follows a tough 2025 financial year, we’ve kept a tight focus on cost management and operational efficiency, while Balwin Annuity continues to strengthen our bottom line,” he said.

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Operating costs rose 24% to R193.1 million, largely due to higher construction activity and annuity expansion. The gross profit margin dipped slightly to 29% (from 32%), mainly because last year’s figures included a once-off land sale. Despite this, the group maintained solid cash flow discipline and avoided excessive incentives, helped by natural demand recovery.

Regional and segmental growth

‍The Western Cape reclaimed its place as Balwin’s top revenue generator, contributing 51% of total turnover after a 70% jump in sales. Gauteng followed with 40%, buoyed by developments in the Mooikloof Smart City project, while KwaZulu-Natal delivered 9% of revenue, rising strongly off a low base.

Balwin’s Classic Collection mid-market apartments that anchor the brand accounted for 81% of total revenue and grew 74% year-on-year. The Green Collection and Signature Collection maintained steady performances, reflecting robust pricing momentum and reduced need for discounts across product lines.

Balwin annuity and sustainability

‍The Balwin Annuity division, which provides recurring income streams through digital, rental, and green energy services, increased its revenue 55% to R101.5 million. The division now manages over R1 billion in assets and contributed 8.3% to group revenue. Internet services, rentals, and solar installations continue to expand sharply with The Eastlake rental development maintaining 97% occupancy.

Balwin’s sustainability credentials remain unmatched in South African residential property. Over 39 000 apartments have received EDGE Advanced certification, ensuring significant energy and water savings. Ten lifestyle centres plus the company’s own head office  have achieved Net Zero Carbon status. The group also facilitated 865 green bonds during the period, saving homeowners an estimated R58 million over 20 years.

Looking ahead

‍Brookes said the company is well-positioned for steady growth through 2026:

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“Balwin has emerged leaner, more focused, and well-prepared for disciplined expansion. With a strong brand, solid forward sales, and rising demand for quality, sustainable apartments, we’re optimistic about the road ahead provided market stability continues.”

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With its disciplined cost management, expanding annuity base, and firm grip on sustainable design, Balwin is not just riding South Africa’s housing recovery, it’s helping build it.

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