Building statistics: Residential building activity improves towards end-2012

Posted On Thursday, 17 January 2013 16:00 Published by eProp@News
Rate this item
(0 votes)

Building activity in the South African market for new housing showed some improvement towards late 2012, with both the planning and construction phases recording higher levels of activity in November compared with a year ago.


November 2012 saw residential building activity in the South African market for new housing improving compared with a year ago. Levels of activity increased in both the planning and
construction phases of new housing in the penultimate month of last year.

The number of new housing units for which building plans were approved, increased by 764 units to 5 439 units in November last year from 4 675 units in November 2011, which translated
into growth of 16,3% y/y. The November 2012 figure was 1 897 units, or 53,6%, more than the number for which plans were approved in April last year. The segment for flats and townhouses was mainly responsible for the growth in the planning phase late last year, showing growth of 116,2% y/y in the number of units for which plans were approved in the period of September to November.

This will positively impact the construction of higher-density housing in 2013. In the construction phase of new housing, the number of units completed increased by 920, or 24,7% y/y, to a total of 4 641 units in November last year from 3 721 units a year ago. All three segments of housing contributed to this increase.

The real value of plans approved for new residential buildings was up by R1,67 billion, or 6,5% year-on-year (y/y), to an amount of R27,44 billion in the first eleven months of 2012 compared
with R25,76 billion in the corresponding period of 2011. The real value of new residential buildings completed was up by R443,7 million, or 2,3% y/y, to a level of R19,47 billion in the period January to November last year, from R19,03 billion in the same period in 2011. These real values are calculated at constant 2010 prices.

The demand for and supply of new housing, as reflected by levels of activity with regard to building plans approved and housing units completed, will continue to be driven by economic
developments, property investment sentiment, and trends in and the state of household finances. 

These factors will affect property buying trends, taking account of property prices, property running costs, financing and transaction costs, as well as the availability and accessibility of
mortgage finance. 

Last modified on Wednesday, 12 March 2014 18:37

Most Popular

Equites Property Fund’ prime logistics portfolio delivers exceptional returns

May 04, 2022
Andrea Taverna-Turisan
Equites Property Fund Limited today announced growth in its distribution per share of…

When is eviction legal? All you need to know about dealing with problem tenants

May 04, 2022
Buying an investment property is great, especially when you’ve chosen a good location.…

Money laundering risks on the rise in real estate

May 05, 2022
James George
Property practitioners in South Africa have been identified as potentially vulnerable to…

Fairvest to list on A2X

May 04, 2022
Fairvest Limited has been approved for a secondary listing on A2X Markets and will be…

Dipula reports solid interim results; all conditions precedent for the repurchase of Dipula A-shares fulfilled

May 05, 2022
Izak Petersen
South-African focused JSE-listed diversified REIT, Dipula Income Fund, today announced…

Please publish modules in offcanvas position.