/ 18 November 1998

Building falls by R1,27bn

SARAH BULLEN, Johannesburg | Wednesday 3.30pm.

THE real value of building plans fell by 10,3% during the first nine months of the year, representing a loss of R1,27-billion to the economy, according to the latest building statistics released by Statistics South Africa on Wednesday. This continues a falling trend since the second half of 1996.

The real value of building plans passed over the period fell to R1,2-billion from R11,0-billion in the same period in 1997. The real value of buildings actually completed increased only slightly by 0,3% over the period.

Decreases in the real value of building plans passed were reported by six of the nine provinces. Leading the slide was Gauteng, down 19,4% (R1,07-billion), KwaZulu-Natal 18,7% (R340,5-million) and the North West 19,9% (R101,3-million). Large increases, however, were recorded by the Northern Cape 69,9% (R57,2-million), the Free State 23,4% (R74,1-million) and the Western Cape 7,8% (R214,0-million).

The increase of 0,3% (R20,7-million) to R7,71-billion in the real value of buildings completed during the first nine months of 1998 against the same period in 1997, was mainly due to real increases reported for residential buildings and non-residential buildings which rose 7,7% and 1,1% respectively. Decreases in the total real value of buildings completed were reported by six of the nine provinces.

Large provincial decreases were reported by KwaZulu-Natal 5,4% (R80,3-million), Northern Province 27,5% (R54,6-million) and the Eastern Cape 7,9% (R32,0-million). Gauteng, however, reported an increase of 7,0% (R204,8-million).