Residential building statistics: Planning of new housing improves

Posted On Thursday, 13 December 2012 15:23 Published by eProp Commercial Property News
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The planning phase of new housing in the South African property market showed a rising trend from July up to October 2012, whereas the construction of new housing saw a contraction in September and October this year.

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However, in the first ten months of 2012 the volume of building plans approved for new housing was down from the corresponding period a year ago, with the construction phase recording low single-digit growth over the same period.

The real value of plans approved for new residential buildings was up by R1,2 billion, or 5,2% y/y, to an amount of R24,24 billion in the first ten months of 2012 compared with R23,03 billion a year ago.

The real value of new residential buildings completed increased by a marginal R233,97 million, or 1,4% y/y, to a level of R17,16 billion in the period January to October from R16,92 billion in the same period last year. These real values are calculated at constant 2010 prices.

The volume of new housing units for which building plans were approved increased from 3 701 units in June to 5 304 units in October. This translated to a cumulative rise of 1 603 units, or 54,1%, in the four-month period. September and October this year saw a year-on-year (y/y) increase of 26,4% and 46,2% respectively in plans approved. The improvement in the planning phase was evident in especially the segments for smaller-sized houses and flats and townhouses.

The construction phase of new housing saw volumes increasing marginally in the first ten months of the year compared with the same period last year, driven by the segments for small houses and flats and townhouses. However, in the months of September and October 2012 the number of new housing units constructed was down by 15,2% y/y and 2,3% y/y respectively.

With planning activity in the categories of smaller-sized houses and flats and townhouses contracting during the course of the year, this may adversely affect construction activity of these types of housing during next year.

Building activity in respect of alterations and renovations to existing houses remained subdued up to October 2012, which is believed to be related to the state of home-owner finances.

Against the background of economic developments, the state of household finances and the level of consumer confidence, residential building activity may remain subdued in the short to medium term, although the recent uptick in planning activity is expected to lend some support to new housing construction in 2013.

Last modified on Wednesday, 12 March 2014 18:15

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