In June 2024, tender values for civil projects declined by 32% year-on-year (y-o-y), with decreases observed in most provinces except North West and Northern Cape. The Western Cape experienced the most significant drop, with tender values falling by R16 billion compared to June 2023. The value of road project tenders decreased by 38% y-o-y, and…
Based on key construction indicators released for the 1st Quarter of 2024, the annual change in the Provincial Construction Pipeline Model (PCPM) decelerated to a nominal increase of 3.3 percent by the end of March 2024, down from a 4.1 percent increase at the end of December 2023. Significant provincial variations are evident, with provinces…
The composite CRMS index (including market capitalisation values of contractors, suppliers, retailers, selected residential and non-residential property funds) gained 12.8 percent m-m in June 2024, (compared to the previous month), with gains shown across all the sub-indices. The Contractors Index showed a double digit increase for the 2nd consecutive month, with the retailers sub-index up…
Property prices are influenced by various factors including economic conditions, interest rates, credit availability, inflation, supply and demand, government policies, location, and market sentiment. In South Africa, COVID-19 caused significant semigration, particularly from poorly governed provinces like Gauteng to better-managed ones like the Western Cape, driving up demand amid low interest rates. Residential property prices…
In May 2024, the value of public sector building tenders fell below R900 million from over R2 billion in April 2024 and May 2023. Despite this decline, tender values for the first five months of 2024 still showed a 54 percent year-over-year increase. The Eastern Cape and KwaZulu-Natal led in tender values for May 2024,…
In Q1 2024, GDP fell by 0.1%, with most sectors underperforming except agriculture, which grew by 13.5%. Construction was the hardest hit, declining by 3.1%, followed by mining (-2.3%) and manufacturing (-1.4%). Construction investment dropped significantly, with residential and non-residential investments contracting sharply. Despite challenges, the civil industry showed positive signs with increased project awards…
The Preferred Supplier & Competitor Survey (PSS), a monthly survey pioneered by Industry Insight, is conducted among contractors to determine material suppliers and brands involved in building and civil projects across the country. Most of the projects surveyed during May 2024 were in the road and water sectors, followed by the education sector. Notably, water…
The 2024 elections in South Africa have caused significant shifts in political power, with the ANC losing representation in all provinces and the DA gaining marginal representation in four provinces. The rapid rise of the MK party in Kwazulu Natal, Mpumalanga, and Gauteng introduces uncertainty in infrastructure development for 2024/25. Potential coalition talks and policy…
Mpumalanga and the Northern Cape lead in construction growth, despite slowing pipelines and declining private sector demand, with significant future investments in civil related and renewable energy investment construction, while Gauteng and Western Cape face mixed construction outlooks amid private investment declines. Read the full report here
In the first quarter of 2024, South Africa’s unemployment rate increased to 32.9 percent, with the construction sector seeing a significant downturn. The labor force in construction dropped by 8 percent from the previous quarter, resulting in an annual growth of only 1.2 percent. Limpopo experienced the most severe job losses, with 57,000 positions lost,…
