Building activity in the South African market for new housing, as reflected by the number of building plans approved and the number of buildings completed, started 2015 on a relatively low note, with both the planning and the construction phases recording a decline in volumes in January from a year ago.
Residential building activity will continue to be driven by economic developments, the state of household finances, consumer and building confidence and consumer lifestyles, which will be reflected in the demand for and supply of new housing. Based on the outlook for the economy and the household sector, residential building activity is in 2015 set to continue around the levels of the past few years. However, a continuation of these trends will increase the pressure on available housing stock and eventually house prices, driven by a growing population and an increasing number of households.
