Metro sees surge in building plans passed.

Posted On Monday, 20 January 2003 10:01 Published by
Rate this item
(0 votes)
An apparent surge in the value and area space of building plans passed in the Nelson Mandela Metro over the past year has been described as a positive indicator of vibrancy in the local economy.
By Sicelo Fayo

An apparent surge in the value and area space of building plans passed in the Nelson Mandela Metro over the past year has been described as a positive indicator of vibrancy in the local economy.

A Statistics SA report released this week showed the total value (at current prices) of building plans passed in the metro during the 11 months to November 2002, rose by 41,8 per cent to R748,3-million compared with R527,8-million during the corresponding period the year before.

This figure constituted almost 60 per cent of the total value of building plans passed during this period for the entire Eastern Cape province.

The Stats SA report showed the biggest surge in building plans passed in the metro was for non-residential buildings.

These reflected growth of 130,1 per cent in value to R142-million, the highest growth of 337,2 per cent being in the value of building plans passed for shopping space.

Growth in area space planned for building in this sub category rose by 272,1 per cent from 5 579m² in 2001 to 20 574m² last year.

The report also reflected a similar growth in both value and area space of building plans passed for industrial and warehouse space, these reflecting increases of 124,4 per cent and 33,8 per cent respectively.

In terms of this, a total 32 782m² area space would be under development for industrial and warehouse purposes in the metro, compared with area space for similar purposes totaling some 24 507m² in 2001.

In rand terms, at current prices, this reflected a surge in investment growth from R22,97-million in 2001 to R51,55-million in 2002.

According to the Stats SA report, not to be outdone was the value of building plans passed for residential purposes in the metro.

This rose by 57,8 per cent to R366-million in the 11 months to end November 2002, the highest increase recorded being that of flat and townhouses planned for construction (119,5 per cent) and dwelling houses (99,9 per cent).

However, the report reflected a marked decline in both the number and value of building plans passed for social welfare and hospitality sector dwellings in the region.

These include social and welfare institutions such as institutions for the disabled, boarding houses, old age homes and hostels; and hospitality sector accommodation structures such as hotels, motels, guest houses, holiday chalets, entertainment centres and B&Bs.

This sub-category reflected a decline of 89,4 per cent in the total area space planned for building construction, with a resultant decline of 84,8 per cent in value of building plans passed.

In rand terms this reflected a decline in value from R3,63-million in 2001 to R550 000 in 2002.

However, the Stats SA report showed that while the value of building plans passed remained highly positive, the value of completed buildings in the metro during the 11 months to end November 2002 fell by an average 11,7 per cent, compared with that of the same period the previous year.

The highest decline recorded was in the value of two categories, non-residential buildings which declined by 50,2 per cent from R105-million in 2001 to R52,1-million in 2002; followed by additions and alterations whose value of buildings completed tumbled by 24 per cent from R125,3-million in 2001 to R95,6-million in 2002.

Eastern Province Herald


Publisher: Eastern Province Herald
Source: Eastern Province Herald

Most Popular

Investec Property Fund launches first REIT sustainability-linked ESG bond in Africa

Apr 22, 2021
Darryl_Mayers_CEO
Investec Property Fund (‘IPF’ or ‘the Fund’) today became the first South African real…

EPP’s new app takes tenant relations to the next level

Apr 22, 2021
Tomasz_Trzósło
Johannesburg Stock Exchange listed EPP, Poland’s biggest retail landlord, continues to…

Rethinking office space in post pandemic SA

Apr 20, 2021
90_Rivonia_results
Since the beginning of the pandemic, one of the biggest questions in real estate has been…

4 simple rules to getting a good credit score

Apr 21, 2021
Carl_Coetzee_BetterBond_CEO
Make buying your dream home an informed purchase by knowing your credit score.

Brokers perceive recovery in industrial and retail market activity, but little sign of improvement in the office market

Apr 15, 2021
John_Loos_fnb
1st Quarter 2021 FNB Property Broker Survey of Rental Market Conditions – Brokers…

Please publish modules in offcanvas position.