Fewer homes built as recession bites – Stats SA

2014-07-01 13:51

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Many building plans were passed but did not materialise due to the 2009 recession, Statistics SA has said.

Statistician-General Pali Lehohla said residential homes, which had already been passed but did not come to fruition as a result of the recession, were first to decrease followed by shopping centres and industrial construction.

The Tshwane Metropolitan Municipality was the quickest to recover from the recession as far as the completion of buildings plans is concerned, he said.

Tshwane trumped Joburg in the construction stakes in the past five years.

Of the six metros, the City of Cape Town had buildings with the highest value (R13.1 billion) followed by Tshwane (R9.6 billion), Joburg (R7.2 billion) and eThekwini (R5.1 billion).

Nelson Mandela Bay’s buildings built between 2012 and last year was last valued at R900 million.

Lehohla attributed the growth in construction in Western Cape to housing backlogs. As a result of the municipality playing catch up, the number of completed buildings had also increased.

Of all the buildings erected in the 2012/13 financial year:

» 34% were homes;

» 15.8% were additions to homes;

» 10.9% were offices;

» 8,1% were townhouses;

» 6% were shopping centres;

» 5.7% were flats; and

» Schools accounted for 1%, while casinos and churches accounted for 0,4%.

Lehohla said the findings of the building statistics survey also showed that there was “incongruence” in government’s policy directives on infrastructure and government’s spending on infrastructure such as transport, water, electricity and sanitation.

“Besides Johannesburg, other municipalities are growing rapidly. Interestingly, comparing Johannesburg and Tshwane in Gauteng, Tshwane building plans increased but an unfinished mall means that the number of completed buildings in Tshwane is lower than expected,” said Lehohla.

The less friendly economic climate made it difficult to determine whether approved building plans would be completed, said Lehohla.

Provincially, Gauteng leads the stakes with the highest value of buildings totalling just more than R21.3 billion between 2012 and last year, followed by Western Cape (R15.7 billion).

Values of buildings in other provinces:

» KwaZulu-Natal – R7 billion;

» Eastern Cape – R2.3 billion,

» Mpumalanga – R2 billion;

» North West – R1.7 billion;

» Free State – R1.1 billion;

» Limpopo – R700 million; and

» Northern Cape – R400 million.

“Johannesburg is still is the leader in terms of building plans passed. Generally building plans that were passed for shopping space and industrial areas were also affected in 2009, but there was an upward trend between 2010 and 2013,” said Lehohla.

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