Strong building activity evident in some categories of new housing across South Africa.

Building activity in the segment for flats and townhouses showed some strong growth in the first two months of 2013, with low growth evident in the segment for larger houses. In general the planning phase, as depicted by building plans approved for new housing, contracted by a small margin up to February, while the construction phase benefitted from double-digit growth in the categories of houses smaller than 80m² and flats and townhouses.

The real value of plans approved for new residential buildings was up by R592,3 million, or 14,2% year-on-year (y/y), to R4,76 billion in the first two months of the year. The real value of residential buildings constructed came to R3,38 billion in the same period, which was R524,6 million, or 18,4% y/y, more than a year ago.

Click here to read the full  report compiled by Jacques du Toit, Property Analyst of ABSA Home Loans