2016’s residential building activity subdued; similar to 2009

Levels of building activity in the South African market for new housing remained largely subdued in 2016, which were in line with trends since 2009 when the economy experienced recessionary conditions.

The planning phase of new housing, as reflected by the number of building plans approved by local government institutions, showed some contraction last year compared with 2015. The construction phase of new housing, i.e. the volume of housing units reported as completed, recorded growth of much in line with that of 2015.

Against the background of the continued relatively low level of consumer and building confidence, as well as recent trends in and the outlook for the economy and household finances, residential building activity is expected to remain largely subdued in 2017.

Read more here: Absa Building Stats December 2016