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Johannesburg - The levels of residential building activity in the South African market for new housing remained subdued in the first nine months of 2013, according to Jacques du Toit, property analyst at Absa Home Loans.
Activity levels in both the planning and construction phases contracted in the third quarter of the year compared with the corresponding period in 2012.
The category for flats and townhouses remained the major contributor to growth in residential building activity up to September this year.
From 1994 up to September 2013, a total number of 1 115 272 private sector-financed new housing units were built county-wide.
Of these 817 660 units, or 73.3% of the total, were constructed in the segments for smaller-sized houses of below 80m² and higher-density flats and townhouses.
The number of new housing units for which building plans were approved dropped by 5.7% year-on-year (y/y), or by 763 units, to a level of 12 611 units in the third quarter of the year, while declining by 1 161 units, or 8.4% quarter-on-quarter (q/q).
These year-on-year and quarter-on-quarter declines in the number of plans approved occurred in the segments for houses larger than 80m² and flats and townhouses.
Real value
The construction phase of new housing experienced a drop of 8.9% y/y to 10 062 units in the third quarter, while a decline of 355 units, or 3.4% q/q, was evident from the second quarter.
Both categories of houses contributed to these contractions, whereas the number of flats and townhouses completed showed growth of around 6% y/y in the third quarter.
In the first nine months of 2013 the real value of plans approved for new residential buildings increased by 15.8% y/y, or R3.35bn, to R24.55bn from R21.2bn in the corresponding period in 2012.
The real value of residential buildings reported as completed increased by 10.2% y/y, or R1.57bn, to R16.96bn in the period January to September from R15.38bn in the same period in 2012.
These real values of residential building activity are calculated at constant 2010 prices.
Residential building activity continues to be influenced by conditions and trends in the economy, household finances, consumer and building confidence, as well as factors related to the demand for and supply of new housing, said Du Toit.
These will remain the main driving factors of residential building activity.
The relatively strong focus on the supply of new housing in the segments of smaller-sized houses and higher-density flats and townhouses is expected to continue against the background of the affordability of housing and mortgage finance as well as changing lifestyles in general, he said.
- Fin24
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Activity levels in both the planning and construction phases contracted in the third quarter of the year compared with the corresponding period in 2012.
The category for flats and townhouses remained the major contributor to growth in residential building activity up to September this year.
From 1994 up to September 2013, a total number of 1 115 272 private sector-financed new housing units were built county-wide.
Of these 817 660 units, or 73.3% of the total, were constructed in the segments for smaller-sized houses of below 80m² and higher-density flats and townhouses.
The number of new housing units for which building plans were approved dropped by 5.7% year-on-year (y/y), or by 763 units, to a level of 12 611 units in the third quarter of the year, while declining by 1 161 units, or 8.4% quarter-on-quarter (q/q).
These year-on-year and quarter-on-quarter declines in the number of plans approved occurred in the segments for houses larger than 80m² and flats and townhouses.
Real value
The construction phase of new housing experienced a drop of 8.9% y/y to 10 062 units in the third quarter, while a decline of 355 units, or 3.4% q/q, was evident from the second quarter.
Both categories of houses contributed to these contractions, whereas the number of flats and townhouses completed showed growth of around 6% y/y in the third quarter.
In the first nine months of 2013 the real value of plans approved for new residential buildings increased by 15.8% y/y, or R3.35bn, to R24.55bn from R21.2bn in the corresponding period in 2012.
The real value of residential buildings reported as completed increased by 10.2% y/y, or R1.57bn, to R16.96bn in the period January to September from R15.38bn in the same period in 2012.
These real values of residential building activity are calculated at constant 2010 prices.
Residential building activity continues to be influenced by conditions and trends in the economy, household finances, consumer and building confidence, as well as factors related to the demand for and supply of new housing, said Du Toit.
These will remain the main driving factors of residential building activity.
The relatively strong focus on the supply of new housing in the segments of smaller-sized houses and higher-density flats and townhouses is expected to continue against the background of the affordability of housing and mortgage finance as well as changing lifestyles in general, he said.
- Fin24
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* Write a guest post
* Share a personal story
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