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• Create Date June 4, 2024
• Last Updated June 4, 2024

Output Building Cost Indices: 1st Quarter 2024

The composite commercial cost index rose 7 percent y-y in 2023, to an average of R14 000/m2, as higher building rates in office and industrial space developments, were pulled lower by a decrease in average retail output costs. Given the depressed market conditions in residential demand, output costs declined by an average of 1 percent in 2023, but showed a 2 percent increase in the 1st quarter of 2024, coming off the low base in 2023. Input costs, measured by Work Group 180 (Lump sum domestic buildings composite index) published by Stats SA, slowed to an average increase of 4.9 percent y-y in Q1, from 6.3 percent in the 4th quarter of 2023. Higher input costs despite the rapid weakening in residential market activity, means the Residential Profitability Indicator fell by 18 percent y-y to an index level of 135.4.

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