Depressed housing market continues to demand building demand

In January 2024, building approvals nationally declined for the 7th straight month, with a 13% decrease year-on-year. Free State saw a significant increase, while other regions like Limpopo and Kwazulu Natal showed modest improvements. However, overall national trends indicate a challenging start to the year, with lower approval rates compared to the previous year. Gauteng and the Western Cape led in approved square meters, but Western Cape experienced the strongest decline year-on-year. Affordability issues persist, especially in provinces like Western Cape where house prices are high. Free State was an exception with increased demand, mainly in retail, industrial, and housing sectors. Despite the market decline, there are opportunities in smaller provinces and specific market segments. Rising inflation and increased bond repayments are putting pressure on consumers. The 2024 budget reflected adjustments in energy and water, but social infrastructure funding was reduced, impacting sectors like health, education, and housing. National Summary and Provincial Summary is now available to download.