The real value of building plans passed in South Africa increased by 29.7% year-on-year (y/y) to 2.17 billion constant 2000 rand in January compared with a 29.9% y/y rise in December, according to Statistics South Africa.

The seasonally adjusted real value of recorded building plans passed by municipalities during the three months ended January 2005 increased by 4.9% compared with the previous three months.

The increase of 4.9% was due to increases in the seasonally adjusted real value of additions and alterations (+15.2%), non-residential buildings (+2.6%) and residential buildings (+1.1%).

The real value of building plans passed in South Africa increased by 32.8% y/y to 31.947 billion constant 2000 rand in 2004.

The largest increase in 2004 in the value of recorded building plans passed was reported for residential buildings (up 39.6% to 19.292 billion constant 2000 rand), followed by additions and alterations (up 27.6% to 8.178 billion constant 2000 rand) and non-residential buildings (up 17.0% to 4.478 billion constant 2000 rand).

The y/y rise in December slowed to 29.9% from 37.3% in November and the 2004 peak increase of 51.9% y/y set in August.

August's increase was the third month that the y/y increase exceeded 40%, beating March's 47.7% y/y and February's 40.7% y/y.

South Africa is currently experiencing a housing boom with South African house prices increasing by 32.6% y/y in December.

This brought the annual average increase to 32.1% for 2004 compared with 21.5% in 2003 according to South African commercial bank Absa's (ASA) monthly House Price Index (HPI).

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