Building activity improves

The first seven months of 2015 saw improved levels of building activity with regard to new private sector-financed housing in South Africa, based on data published by Statistics SA.The number of new housing units for which building plans were approved was up by around 5% year-on-year (y/y) to more than 35 000 units since January, with strong growth of 15.5% y/y recorded in the category of flats and townhouses.

Housing developments normally taking quite some time to complete so the double-digit growth in the planning of these types of homes will result in substantial increases building activity over the next year.

Growth in the number of new housing units actually constructed was recorded at 6.3% y/y, with a total of almost 22 000 units built in the seven months up to July. This growth was largely the result of a relatively strong improvement in new houses built to the tune of 19% y/y to a total of 15 951 units,