Research

Improvement in residential building activity in early 2018

  • Building activity in the planning phase (the number of building plans approved by local government institutions) dropped on a year-on-year basis, with the construction phase (the number of housing units reported as completed) contracting compared with a year ago.
  • The number of building plans approved for new housing increased by 18,8% year-on-year (y/y), or 3 079 plans, to 19 423 plans in the period January to April this year.
  • New housing units reported as being completed dropped by 22,7% y/y, or 3 062 units, to a total of 10 440 units in the first four months of the year.
  • The average building cost of new housing completed increased by 5,5% y/y to R7 437 per square meter in the first four months of 2018, compared with R7 049 per square meter a year ago.
  • Building activity with regard to alterations and additions to existing houses remained under pressure, with both the building area approved and the building area reported as completed contracting marginally year-on-year in January to April.
  • In view of economic trends and expectations, levels of residential building activity are forecast to remain largely in line with those of the past few years.

Read more here: Absa Building Building Stats April 2018