21 Jan 2013
The value of recorded building plans passed (at current prices) increased by 9.7 percent (R5 964 3 million) during January to November 2012, according to Statistics South Africa (Stats SA).
Stats SA says the biggest increase was reported for residential buildings (12.7 percent or R3 447 6 million), followed by additions and alterations (7.7 percent or R1 510 5 million) and non-residential buildings (6.9 percent or R1 006 2 million).
The increase in the value of building plans passed was dominated by Gauteng (contributing 7.5 percentage points or R4 592 5 million) and Western Cape (contributing 4.1 percentage points or R2 529 4 million).
The decrease reported for KwaZulu-Natal (contributing -3.1 percentage points or -R1 894 3 million) counteracted the increases reported for building plans passed to a certain extent, reveals the report.
According to Stats SA, the real value of recorded building plans passed (at constant 2010 prices) increased year-on-year (y/y) by 3.6 percent (R2 122 5 million) during January to November 2012.
The biggest increase was reported for residential buildings (6.5 percent or R1 674 3 million), followed by additions and alterations (1.8 percent or R333 4 million) and non-residential buildings (0.8 percent or R114 8 million).
The report reveals that the value of buildings reported as completed (at current prices) increased by 5.1 percent (R2 005 3 million) during January to November 2012 compared with January to November 2011.
Increases were reported for non-residential buildings (16.2 percent or R1 519 5 million) and residential buildings (8.4 percent or R1 622 9 million), while a decrease was reported for additions and alterations (-10.7 percent or -R1 137 1 million) during the above-mentioned period.
Five provinces reported y/y increases in the value of buildings completed during January to November 2012.
The y/y increase was dominated by Gauteng (contributing 5.8 percentage points or R2 262 9 million). A large decrease was reported in KwaZulu-Natal (contributing 2.4 percentage points or -R960 5 million).
Meanwhile, the real value of buildings reported as completed (at constant 2010 prices) decreased y/y by 0.1 percent (-R46.5 million) during January to November 2012.
A large decrease was reported for additions and alterations (-15.0 percent or -R1 605 0 million), while increases were reported for non-residential buildings (11.7 percent or R1 114 8 million) and residential buildings (2.3 percent or R443.7 million) during the above-mentioned period.
According to Absa, residential activity for new housing improved in November 2012 when compared to the same period in 2011.
The bank reveals that 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 percent y/y.
The November 2012 figure was 1 897 units or 53.6 percent more than the number for which plans were approved in April last year, says Jacques du Toit, Absa Home Loans property analyst.
Du Toit explains that flats and townhouses were mainly responsible for the growth in the planning phase late last year, showing growth of 116.2 percent 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 percent y/y, to a total of 4 641 units in November last year from 3 721 units a year ago with all three segments of housing contributing to this increase.
“The real value of plans approved for new residential buildings was up by R1.67 billion or 6.5 percent y/y to R27.44 billion in the first 11months of 2012 compared with R25.76 billion in the corresponding period of 2011.”
He says the real value of new residential buildings completed was up by R443.7 million or 2.3 percent 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 calculated at constant 2010 prices.
According to Absa, 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, says the bank. –Denise Mhlanga
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