Balwin knocked it out of the park with its maiden results, with pretty much all the numbers going the right way for shareholders. On the back of these results, a number of people have asked me if I am considering buying back into the company and my answer is no. Now maybe it is more about not wanting to re-enter a stock I sold late last year, but I still have concerns about the broader housing market. Rising interest rates and inflation are adding further pressure on consumers, and I expect to see an uptick in home-loan defaults and hence falling house prices. Further, I still hold some Calgro M3*. It’s different to Balwin in that it focuses on lower LSM markets, but that is likely to be the more resilient space.
Balwin's Amsterdam development in Olivedale, Johannesburg.