Building plans passed down

The value of South African recorded building plans passed at constant 2000 prices in June decreased for the first time this year by 1.4% year-on-year (y/y) from a revised 5.9% y/y (6.2%) in May, Statistics South Africa (Stats SA) data showed.

Notably, residential building plans came off by 6.3% y/y - the first time they have registered a decrease since February. The June decrease in this category is the largest decrease of the year with the next highest the -4.5% recorded in January.

Non-residential building plans, however, continued to buck their previous losing streak to move upwards by 27.4% y/y - the second highest increase of the year. Decreases had been recorded in March and April.

The value and percentage of buildings reported as completed rose at a slower 3.4% y/y from the revised 18.5% (19.3% y/y) at constant prices in May.

Completions of non-residential buildings tailed off to 9.8% y/y from the revised 31.4% (30.6% y/y) in May and after the record 120.6% y/y growth recorded in April.

Residential building completions were up just 1.0% in June from the revised 22.1% (23.5% y/y) in May.

The seasonally adjusted real value of recorded building plans passed by larger municipalities during the second quarter of 2007 decreased by 1.4% compared with the previous quarter, mainly due to decreases reported for residential building plans passed (-4.4%) and additions and alterations (-0.5%). This decreases was partially counteracted by an increase reported for non-residential buildings (6.6%).

Article by: Evan Pickworth - www.sundaytimes.co.za