Continued subdued residential building activity up to late 2016

Building activity with regard to new private sector-financed housing in South Africa remained much subdued in the first eleven months of 2016 compared with the corresponding period in 2015, based on data published by Statistics South Africa.

The economy is estimated to have grown by only 0,4% in 2016, with real growth of 1% forecast for 2017. Headline consumer price inflation is expected to subside to around 5% y/y by the end of the year from 6,8% y/y in December last year, with interest rates projected to remain stable at currently levels throughout the year. With both consumer and building confidence levels that were depressed in 2016, as well as trends in and the outlook for the economy and the household sector, residential building activity is to remain relatively subdued in the foreseeable future.

Read more here: Absa – Residential building statistics