Building plans up 51.4% in 2005

Preliminary estimates indicate that the value of recorded building plans passed by larger municipalities (at current prices) during 2005 increased by 51.4%, or by 22.777 billion rand compared with 2004, Stats SA said on Wednesday.

Large increases in the value of recorded building plans passed were reported for non-residential buildings (+72.5%), additions and alterations (+56.7%) and residential buildings (+44.0%), Stats SA said.

The preliminary estimates also indicate that the value of buildings reported as completed to larger municipalities (at current prices) during the past year increased by 40.2%, or 9.083 billion rand.

Large increases in the value of buildings reported as completed were reported for residential buildings (+49.1%), additions and alterations
(+30.4%)and non-residential buildings (+15.7%), Stats SA added.

South Africa's construction sector is the major winner of the 2006 Budget tabled by Finance Minister Trevor Manuel on Wednesday.

Most analysts have already factored in the doubling of public sector capital expenditure (capex) from 65 billion rand in the 2002/3 fiscal year to 133.8 billion rand in 2008/9.

However, the reduction in transfer duties, the 18.1% increase in the budget for the housing department and the raising of the capital gains exempt limit of the primary residence to 1.5 million rand from 1 million rand, are new elements unveiled for the first time on Wednesday.

These budgetary measures should boost construction activity in the private residential market.

To help the construction industry achieve its potential, the government will prioritise civil engineering and project management skills when it recruits overseas.

Already construction jobs have risen by more than 50% over the past three years and a further increase of similar magnitude is anticipated over the next few years.