Ballito Junction rides wave of high-income migration

Ballito Junction Regional Mall, located on KwaZulu-Natal’s affluent Dolphin Coast, has posted a 14% increase in consolidated turnover for March and April 2025 compared to the same period last year, capitalising on a growing local economy and sustained influx of wealth into the region.

Foot traffic over the two-month period also rose by 4.85%, according to centre management, with significant contributions from both local shoppers and visiting holidaymakers.

April emerged as a particularly strong month, with year-on-year turnover climbing by 21%, driven in part by favourable school holiday timing and a cluster of long weekends that extended leisure shopping opportunities. Footfall in April was up 12%.

These results, which outpaced both inflation and visitor growth, reflect real trading gains and a marked increase in shopper spend per visit.

Ballito Junction’s performance is closely tied to the rapid wealth growth seen along the Durban–Umhlanga–Ballito corridor. Two areas specifically – Salt Rock and Ballito – have seen dramatic increases in average monthly household income, rising from around R12,500 a decade ago to over R145,000 in 2025.

According to Rainmaker Marketing’s 2025 Property Market Report, Salt Rock led regional growth with a 645% increase in income, while Ballito followed with a 504% rise. Salt Rock households now earn between R115,000 and R145,000 per month on average, while Ballito sits at R91,500 to R124,000.

These increases point to a growing concentration of wealth on KZN’s North Coast, with Salt Rock now home to 70% wealthy or super-wealthy households. Ballito shows more income diversity, but half of its residents fall into high-income brackets.

Salt Rock has become a key player in the regional property market, accounting for 47% of all sales in the greater KwaDukuza NU region between March 2024 and February 2025. It also outpaced Ballito in recent average sale prices—R4.06 million vs. R3.14 million, a 30% premium.

Between 2008 and 2018, the region recorded a 25% increase in total wealth, according to AfrAsia Bank’s South Africa Wealth Report. The area is now home to a significant population of high-net-worth individuals and is considered a key node for luxury living and premium consumer demand.

The growth of Ballito as both a residential and leisure destination has created a strong foundation for retail success, said Geraldine Jorgensen, CEO of Ballito Junction.

The mall’s recent performance highlights a notable consumer shift toward experience and lifestyle-driven retail. Year-on-year category growth for the season included:

-Outdoor goods and wear: +224%
-Jewellery, watches, and accessories: +172%
-Travel and luggage stores: +144%
-Fast food and casual dining: +78%
-Entertainment outlets: +66%

The mall’s recent results are also attributed to an aggressive leasing strategy that has introduced high-impact tenants designed to appeal to a diverse, affluent customer base.

New openings include:

-Workshop17: A 2,560m² flexible office space catering to remote professionals
-The Pro Shop and Cycle Lab: An 850m² outlet serving Ballito’s active, health-conscious demographic
-Bluff Meat Supply: A 647m² store aimed at family shoppers

Additional new tenants-such as Marcels Frozen Yoghurt, Neovision, Salomon, Nomination, Velo, and The Skatepark—have helped activate the mall’s recently revamped Piazza area, now a vibrant family-friendly zone anchored by Starbucks and Krispy Kreme.

Ballito Junction is owned by a joint investment consortium comprising Menlyn Maine Investment Holdings and Flanagan & Gerard Property Group, with hands-on management credited for its operational responsiveness and tenant alignment.

The mall now boasts a 99.7% occupancy rate and continues to attract national and international brands.

Mthatha mall upgrade sparks double-digit trading growth

Mall of Mthatha is undergoing a significant transformation following its acquisition nearly a year ago by Flanagan & Gerard Property Group and retail REIT Vukile Property Fund.

The R800 million acquisition paves the way for an extensive R210 million redevelopment strategy aimed at improving flow, accessibility, and the overall shopping experience, said the developers.

A key aspect of Mall of Mthatha’s transformation has been the expansion and diversification of its retail mix. Under its new ownership, the mall’s vacancy rate has decreased dramatically from 18% to just 1.85%, reflecting the strong demand for quality retail space in the region.

Notable new tenants include Dis-Chem (opening March 2025), Spur and News Café (both opening June 2025), and Shoprite and Shoprite Liquor (scheduled to open in August 2025).

Recently opened retail entrants include fast food outlet Burger King, clothing retailers Pick n Pay Clothing, Queenspark, Sergeant Pepper Clothing Company and JAM Clothing, along with Homechoice, Pep Home, Mr Price Cellular and Van Schaik Bookstore.

Additionally, expansions of Studio 88, Sidestep and Skipper Bar further strengthen the mall’s retail offering.

Since August 2024, Mall of Mthatha has recorded consistent double-digit trading growth, culminating in a 9.7% turnover increase from January to December 2024 compared to the previous year. Foot traffic has also shown double digit growth in recent months.

Categories such as homeware and speciality foods have demonstrated remarkable sales performance, each exceeding 50% year-on-year growth.

The addition of a new mezzanine level and lobby are set for completion by the end of May. Its new escalator installations will be completed outside Woolworths this month and outside Checkers by the end of May.

Infrastructure investments as part of the project are ongoing, with enhancements in lighting, CCTV, HVAC systems, access control, and Occupational Health and Safety compliance.

Additionally, a new 1.8MW solar installation is being implemented to support sustainability initiatives.

Paul Gerard, Managing Director of Flanagan & Gerard, says of the mall’s transformation: “Our investment in Mall of Mthatha reflects our shared confidence in the economic potential of the region. Through strategic upgrades and a strengthened retail mix, the potential of this exceptional shopping destination is being unlocked to better serve the broader community, its shoppers and retailers.”

The mall’s upgrade project is set to be complete by September 2025.