• Version
• Download 4
• File Size 483.93 KB
• File Count 1
• Create Date July 22, 2024
• Last Updated July 22, 2024

Pulse - Public and Private Sector Provincial Building Pipeline Profile as at May 2024

For the purpose to evaluate the potential pipeline in the building industry, it is important to also monitor activity within the public sector. For this purpos,  we include a summary of the private (value of building approvals) and public sector (estimated value of building projects out to tender) with a primary focus on the building pipeline.  The comparative analysis is at provincial level, and monitors the value of the building pipeline over a running twelve month period in current prices. There is also strong provincial differentation in the weight of the public sector in the overall value of the pipeline, where in some provinces, the public sector may play an even larger role than the private sector for example Limpopo. In the Eastern Cape, the public sector also has a higher than average impact on the pipeline.

The public sector's contribution to the overall value of the building pipeline over the last 12 months (up to May 2024) was 21 percent, or R26.2bn, compared to the value of private sector building approvals that fell by 12 percent y-y to R98bn or 79 percent of the total pipeline value. Despite a 37 percent increase in the total value of public sector building projects to tender, the decline in the value of private sector building approvals resulted in an overall 5 percent contraction in the building pipeline over the last 12 months.  Some provinces bucked the trend, including Eastern Cape, and Free State, with moderate overall increases also reported in Kwazulu Natal, Limpopo and North West Province. Despite a rather robust improvement in Gauteng, the steep decline in private sector demand pulled the pipeline lower by 10 percent.

Please refer to the accompanying report for a summary of the provincial trends.

Attached Files