(3 minutes read)
· Buildings completed in South Africa measured in real terms; fell by -11 percent for the year-to-date (YTD) ending April 2021, compared to the same period last year
· This is underpinned by the non-residential segment of the market, which has to bear the brunt of the pandemic, according to Investec Bank economist Lara Hodes
· Only 30% of the surveyed builders are upbeat, while 70% of respondents still dissatisfied with prevailing conditions including bottlenecks in the supply of building materials
Buildings completed in South Africa measured in real terms; fell by -11 percent for the year-to-date (YTD) ending April 2021, compared to the same period last year. This is underpinned by the non-residential segment of the market, which has to bear the brunt of the pandemic, according to Investec Bank economist Lara Hodes.
Completions within the non-residential space also declined. It fell by -52.2 percent yon year (y/y) in the first four months of the year. Residential completions were up 20.9 percent y/y over the same period, though from a low base of April 2020.Importantly, the BER’s second quarter building survey underscored that confidence among residential sector builders was up on first quarter 2021 levels.
However, only 30% of the surveyed builders are upbeat, while 70% of respondents still dissatisfied with prevailing conditions including bottlenecks in the supply of building materials. Pipeline activity, as measured by building plans passed, was up 24.9 percent y/y for the YTD ending April, although the base level for the comparable period was very low.
