The Property Sector Charter Council has recently released its latest study, The South African Property Sector Economy Contribution.
The report’s analysis uses the life cycle of a property; from origination to transaction and to its end cycle stage. It was (and remains) the most resourceful study of its kind in the country, highlighting the contribution of the property sector to the economy.
The research is continued from its 2015 report which measured the size of South Africa’s property market at a massive R5.8 trillion.
A key finding within the study reveals that the South African Reserve Bank (in the same year) estimated the total value of all fixed capital stock; property, machinery and transport at R7.6 trillion, meaning that property constitutes 78% of all fixed capital stock in the country.
2015’s total direct expenditure of the property sector was R132 billion and the sector made an important total tax contribution of R62 billion, showing a growth of 35% from the previous 2013 report with a R46 billion tax contribution. The report confirmed a total number of 278 000 jobs in the property sector. The highest recorded levels of employment are during the transaction phase which are sustained over time versus project-based jobs. All of these figures are expected to play a significant role in the socio-economic transformation of South Africa.
“The property sector makes a significant contribution to the country’s economy and it is important to continually review this research. Aside from the fact that no reliable figures have existed on the size and impact of the sector before this, in a sector this big and this important as property there should be ample opportunity for transformation to take place” commented Portia Tau-Sekati, CEO of the Property Sector Charter Council.
Tau-Sekati explains that detailed research is being carried out in various phases, with each phase providing a valuable understanding of the sector and ultimately enhancing the consolidated body of knowledge about the property sector that will foster a consistent understanding of the sector for measurement and evaluation.
This event was sponsored by Standard Bank. Jonas Malebye, Head of Investment banking South Africa, says that the event holds substantial value for the property sector: “Standard bank is proud to sponsor this event that enhances the knowledge base of the sector, contributes to its growth and benefits all participants.”
The research was commissioned by the Property Sector Charter Council and compiled by the Stratecon Applied Economic Research.