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• Create Date July 16, 2024
• Last Updated July 16, 2024

Output Building Cost Indices (Dashboard) 2nd Quarter 2024

The composite index for construction materials, measured by Stats SA, stabilised at a preliminary increase of 7.4 percent for the 2nd quarter of 2024, on par with the previous quarter, while the input costs for domestic buildings stabilised at an average increaes of around 5 percent for the past two quarters.  The output cost housing construction index has been muted since the end of 2022, as higher lending rates impacted negatively on consumer demand, but after a moderate 2 percent average increase in the 1st quarter, the residential construction output index increased by 8 percent y-y in the 2nd quarter of 2024.  Construction cost inflation in industrial developments slowed to less than 7 percent by the 2nd quarter as this market is showing signs of cooling, while retail construction inflation started showing a stronger acceleration. With a limited (and shrinking) sample to monitor office building construction, data has become increasingly volatile. However, based on preliminary estimates, construction cost inflation in office construction is on average 3 percent lower in the first six months of 2024 compared to 2023, with industrial up 4 percent and retail space construction up 17 percent, during the same period (Jan to June).

 

The Output Construction Index is compiled from the average building rate per m2 according to research provided by Databuild of building projects that have been awarded within a particular period. Outliers are removed and data is smoothed over a 5-quarter period to limit the impact of data volatility.

 

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