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South African Construction Activity Profile 2024Q3

Please find the Q3 2024 update of the quarterly Construction Activity Profile (CAP) for the South African construction industry. It includes quarterly updates of construction project awards, tenders, postponements and cancellations by province for the building and civil sectors.

The pace of awards deteriorated in the 3rd quarter of 2024, with a predictable slowdown in building awards, and a moderate decline reported in the number of civil projects awarded.  Over a 5-quarter average, the civil sector continues to outperform the building industry, but has also shown a notable slowdown in recent months.  A few larger mixed use developments favourably impacted the nominal rand value of building projects awarded (although these projects will be completed over a longer period of time), against a R2bn decline in the value of civil projects awarded in Q3 compared to the same period in 2023. Tender activity was significantly weaker in Q3, in both market sectors, and fell into double digit declines measured on average over the last 5 quarters. Aggrevating the decline in tender activity is the rapid increase in postponements, that has more than doubled in the civil sector over the last 5-quarters, with project cancellations also on the rise. The postponement rate in the building sector outperforms the civil sector, sensitive to economic growth prospects, affordability constraints and sentiment concerns.  With over 2 300 tenders released during the first three quarters of 2024, CIDB Grade 9 projects represented only 3 percent of the total number of tenders, with a postponement rate of 28 percent, the highest across all CIDB Grades (not including Grade 2 where project information is limited due to the high level of fragmentation). Grade 7 projects represented 21 percent of the total, with a below average postponement rate of 12 percent.

Provincial details included in the attached report.

For more details please contact our offices.

 

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