South Africa’s construction sector faced significant challenges in 2024, with weak economic growth, declining investment, and historically low project approvals. However, Q3 2024 showed early signs of recovery, with increased turnover and employment gains. While policy uncertainty continues to weigh on private sector investment, new public-private partnership regulations and infrastructure reforms aim to unlock growth….
The nominal value of building approvals continued on the more positive trajectory, with a more robust performance by the residential market for the month of December. Overall approvals however contracted by R3bn in 2024 to R98bn, but some provinces have outpaced the average. The strongest increase was reported in Kwazulu Natal, where approvals rose by…
In the fourth quarter of 2024, South Africa’s unemployment rate decreased to 31.9%, supported by Northern Cape, Kwazulu Natal, Mpumalanga and moderate improvements in Limpopo, and the Eastern Cape. The unemployment rate in the Western Cape was unchanged at 19.6 percent. The unemployment rate in the North West rose by 4.5 percentage points to 41.3…
Average house prices in South Africa reached 3.3 percent y-y in September 2024 (latest available data from Stats SA), showing the strongest annual increase since December 2022 (3.5 percent). September 2024 also saw the first cut in the prime lending rate to 11.5 percent, with two more 25 basis point cuts announced since then, that…
The 2025 State of the Nation Address (SONA), delivered by President Cyril Ramaphosa, presented ambitious infrastructure, housing, and local government reform plans, yet past failures raise doubts about their execution. While R940 billion has been pledged for infrastructure investment over the next three years (to be confirmed in the 2025 Budget), historical trends show that…
Construction material price inflation gained momentum towards the end of 2024, reaching an annual increase of 4.2 percent in December 2024, against an average consumer inflation increase of 3 percent. On average construction materials rose 6.1 percent in 2024, maintaining its above inflationary increase for the 2nd consecutive year. Several materials showed higher than average…
The Expropriation Bill of 2025 has sparked significant concern over its potential impact on property rights, investor confidence, and economic stability. While it aims to address historical land injustices and promote development, critics worry about the inclusion of “nil compensation” in specific cases and the broad interpretation of “public interest,” which could lead to misuse….
Contradictory to GFCF estimates for construction released by the Stats SA, the Q3 Quarterly Financial Statistical release, showed the strongest increase in construction turnover in 7 years (June 2016), up 10.8 percent y-y, excluding the post Covid period (2021). Turnover by medium size contractors, continued its robust growth trajectory for the 4th consecutive quarter with…
The Provincial Construction Pipeline Model (PCPM) reveals a mixed outlook for South Africa’s construction industry as of September 2024. While the overall pipeline contracted by -12.2% year-on-year, certain provinces like the North West (+20.5%) and Northern Cape (+17.9%) showed significant growth. Public sector building activity remained robust, with a 30% increase in awarded projects, though…
The Company Results Monitor Service (CRMS) index is a composite index of listed JSE companies performance in terms of market capitalisation values, active in the South African Construction Sector. The Composite CRMS Index ended flat in November 2024, following a near 4 percent drop in October, despite a gains reported in the Retailers and Suppliers’…
