Year-on-year growth in the volume of building activity in the planning phase of the South African market for new housing remained in the low single digits in the first two months of 2016. The volume of activity in the construction phase of new housing showed relatively strong growth compared with a year ago, which was the result of a sharp improvement in one segment of the market on a year-on-year basis since the start of the year.
The South African economy is expected to experience tough times in 2016, with growth forecast at a much subdued 0,6%, while inflation and interest rates are in an upward cycle. Consumers are facing increased financial strain, with confidence levels set to remain low. Against this background, residential building activity may see some downward pressure in the rest of the year.
Read more here: ABSA Building stats Feb 2016