Jerry Monaghan, sales manager of estate agent Bushells, says prices in the area have rocketed in the past five years and are continuing to rise, despite the market faltering elsewhere in London.
'Balham has something for everyone - great schools and green spaces for kids, and a lively nightlife. There are family areas such as the Nightingale Triangle and trendier areas such as the Heaver Estate.
'The Art Deco Du Cane Court by Balham Tube station is popular, especially with single women, because of the security it offers. It is a Thirties portered block with almost 700 flats, and studios cost from £110,000 while two-bedroom flats go for around £250,000.
'A lot of couples move here if one is working in the City and the other out of London, as SW12 has transport links to both. While other markets, such as Clapham, seem sluggish, Balham is booming.'
Hugh Crossley, 31, son of Lord Somerleyton and subject of last year's television documentary To The Manor Born, owns Persian restaurant Dish Dash, beloved of celebrities such as Angelina Jolie, Gail Porter and Jamie Oliver.
It has just relocated from the West End to Balham and, although Crossley spends much of his time at his 300-room stately home in Suffolk, he spends several days a week in South London.
'Times are changing in London restaurant circles,' he says. 'People no longer want to go all the way to the West End for an expensive meal. They want to go out to a local restaurant with the minimum of hassle. The best restaurants in London will all be in the suburbs soon.
'Balham has a great mixture of single people and young families so we get the best of both worlds with a really buzzy crowd.'
Nick Reeves, 28, an advertising executive and first-time buyer, bought a two-bedroom flat in Balham last summer when he found he couldn't afford to buy in Battersea.
'I was worried Balham might be a bit grotty but in fact there are some stunning houses around here. My parents quoted " Gateway to the South" at me, but Balham has moved on.'