20 May.
Residential building activity improved in the first quarter of 2011.
Building activity in respect of new housing in the South African residential property market showed some improvement in both the planning and construction phases in the first quarter of 2011 compared with the corresponding period in 2010.
The number of new housing units for which building plans were approved by local government authorities was up by 14,6% year-on-year (y/y), or 1 331 units, in the first three months of 2011. This increase in plans approved was driven by the segments of houses smaller than 80m², and flats and townhouses. These developments are regarded as an indication of a growing demand for smaller-sized and higher-density housing against the background of the affordability of housing and mortgage finance, impacted by the general state of household finances.
The construction phase of new housing, which lags the planning phase, also showed some improvement in levels of activity in the first quarter of the year compared with a year ago. The number of new housing units constructed increased by 0,7% y/y, driven by the segments of smaller-sized houses and flats and townhouses. The abovementioned improvement in the number of housing units for which plans were approved, are expected to be reflected in the construction phase in the second half of the year. …
Read more at Absa Property Research
Discussion
Comments are closed.