South Africa’s public sector tender values continued to plummet in October 2024, dropping 73% year-on-year, reflecting persistent declines since the May 2024 elections. Year-to-date building tender values fell 29% year-on-year to R13.8 billion, a stark contrast to the 23% growth seen in 2023. Despite this national downturn, provinces like Gauteng, North West, and Western Cape…
The South African construction industry saw mixed trends in Q3 2024. Commercial building costs rose by 12.1%, driven by a 43% surge in retail space costs to R16,407/m², while office space costs dropped 8.8% to R18,000/m². Industrial space costs grew 10% to R13,292/m², and residential costs moderated to a 5.7% increase, averaging R11,380/m². Stats SA…
South Africa’s estimated civil tender values have shown a mixed trajectory in 2024. While provinces like Gauteng and Limpopo have experienced significant growth, the national trend reflects a decline compared to 2023. In October, Gauteng’s estimated tender values surged to R1.3 billion, marking a 59% year-over-year increase, while Limpopo increased by 86%, exceeding R1 billion….
South Africa’s cement market is facing intense competition from rising imports, with imported cement volumes increasing by 20% year-over-year up to August 2024. Imports, mainly from Vietnam, Mozambique, and Namibia, continue to challenge local production, which saw only a modest 0.4% year-over-year recovery in August after three months of contraction. As of September 2024, imports…
The October 2024 Construction Monitor report highlights key trends, challenges, and growth areas in South Africa’s construction sector, offering critical insights into the nation’s infrastructure development. Despite challenges such as public sector project delays and a decline in private sector building approvals, interest rate cuts and a slight economic boost from public investment could stabilize…
In August 2024, private sector building approvals fell by 1.5% year-on-year to R8.4bn, despite moderate growth in square meters approved. Residential approvals rose, with strong growth in home renovations and smaller dwellings. However, approvals for multi-unit housing and office/retail spaces remained weak. Industrial building approvals surged by 197%, driving growth in several provinces. The Western…
The South African Reserve Bank (SARB) cut interest rates by 25 basis points in September 2024, lowering the prime lending rate to 11.50%. Further cuts are expected, with the repo rate projected to reach 7.25% by the end of 2026. SARB forecasts modest economic growth of 1.1% for 2024, with inflation slowing to 4.4%, the…
Local governments underspent their capital budgets by R27 billion for the 2023/24 financial year, marking an increase of R7 billion compared to the previous year, 2022/23. Cumulatively, 66% of the annual capital budget of R78.6 billion was spent. Metropolitan municipalities underspent by R10 billion, achieving an expenditure rate of 71%, down from 76% in 2022/23….
The public sector contributed 21% (R25bn) to the building pipeline in the past 12 months up to July 2024, while the private sector saw an accelerating 16% year-on-year (y-y) decline, contributing R95bn. Public sector project values grew by 33%, slowing from 37% in May 2024. Post-election, public sector tenders dropped sharply, with a 50% monthly…
Public building tender values experienced a significant downturn, plummeting by 78% year-on-year in August to an estimated R964 million, compared to over R4 billion in August 2023. Since May 2024, tender values have fallen by an average of 46% year-on-year, a stark contrast to the 160% surge seen between January and April. The Western Cape…
