If figures issued by Statistics South Africa can be believed, the Western Cape lagged badly behind the other provinces in providing low-cost subsidised housing in the year ended March.
According to these figures, only 2 040 low-cost houses were built in the province in this period. This compares with 16 874 built in the Eastern Cape, 17 635 in the Free State, 21 603 in KwaZulu-Natal, 23 409 in Gauteng and 21 973 in Limpopo. These houses all cost just under R26 000.
However, the provision of low-cost housing in the Western Cape province has been on a downward path for some years. In 2002 a total of 19 534 houses were built. This number fell to 16 926 in 2003 and to 12 751 in 2004.
This does not seem sufficient to provide for the more than 30 000 people which Statistics South Africa reported migrate to the Western Cape every year.
In the private sector there are signs of some levelling off in new construction. In the four months ended April, local authorities approved the construction of new buildings worth R5.2 billion. This was 8.1% more than in the same period last year. However, when increases in costs are taken into account the physical volume of work is probably no more than last year.
There was a big increase in the first four months of this year in the number of small houses (less than 80m2) built. However, there was a marked falling off in the construction of new houses, flats and apartments. There was also a significant decline in cost increases and it seems possible that this and the reduced amount of business on offer could be connected.
Plans for 2 088 houses with a floor area of less than 80m2 were approved. The average cost was R67 562, which was only 1.6% above the 2005 price.
In contrast there was a distinct drop from last year in the number of houses planned with a floor area of 80m2 from 2 627 to 2 274.
But the average cost rose some 4% from R649 000 in the first four months of last year to R676 000 in the same period this year.
A little surprising was the decline in the number of flats and townhouses planned.
In the four months ended April this year only 1 603 were approved, which was sharply down from 1 941 last year. However, the 12% increase in average prices from R345 000 last year to R386 000 this year is possibly constraining developers.
But a development that should gladden the local construction industry is the big increase in the number of commercial buildings in the pipeline.
Plans for office and banking space costing R277 million were approved, which was 144% higher than last year. The amount of money to be spent on new industrial and warehousing space was also substantially higher, jumping 82% from R408m to R742m.
The strong increase in the cost of new buildings over the years has made it more effective for house owners to improve their existing houses.
This resulted in plans for additions and alterations to dwelling houses costing R1.24bn to be submitted to local authorities in the Western Cape for their approval this year.
Alterations and additions to non-residential buildings costing R444.5m were also approved. This was 16% more than last year.
The half-a-percent increase earlier this month in the interest rate is not likely to have much effect on the building industry.
The increase is seen as extremely modest and not likely to push up building costs.
Only if it is regarded as the start of a trend towards dearer money will the increase in rates begin to have an impact on building plans. - Cape Argus
According to these figures, only 2 040 low-cost houses were built in the province in this period. This compares with 16 874 built in the Eastern Cape, 17 635 in the Free State, 21 603 in KwaZulu-Natal, 23 409 in Gauteng and 21 973 in Limpopo. These houses all cost just under R26 000.
However, the provision of low-cost housing in the Western Cape province has been on a downward path for some years. In 2002 a total of 19 534 houses were built. This number fell to 16 926 in 2003 and to 12 751 in 2004.
This does not seem sufficient to provide for the more than 30 000 people which Statistics South Africa reported migrate to the Western Cape every year.
In the private sector there are signs of some levelling off in new construction. In the four months ended April, local authorities approved the construction of new buildings worth R5.2 billion. This was 8.1% more than in the same period last year. However, when increases in costs are taken into account the physical volume of work is probably no more than last year.
There was a big increase in the first four months of this year in the number of small houses (less than 80m2) built. However, there was a marked falling off in the construction of new houses, flats and apartments. There was also a significant decline in cost increases and it seems possible that this and the reduced amount of business on offer could be connected.
Plans for 2 088 houses with a floor area of less than 80m2 were approved. The average cost was R67 562, which was only 1.6% above the 2005 price.
In contrast there was a distinct drop from last year in the number of houses planned with a floor area of 80m2 from 2 627 to 2 274.
But the average cost rose some 4% from R649 000 in the first four months of last year to R676 000 in the same period this year.
A little surprising was the decline in the number of flats and townhouses planned.
In the four months ended April this year only 1 603 were approved, which was sharply down from 1 941 last year. However, the 12% increase in average prices from R345 000 last year to R386 000 this year is possibly constraining developers.
But a development that should gladden the local construction industry is the big increase in the number of commercial buildings in the pipeline.
Plans for office and banking space costing R277 million were approved, which was 144% higher than last year. The amount of money to be spent on new industrial and warehousing space was also substantially higher, jumping 82% from R408m to R742m.
The strong increase in the cost of new buildings over the years has made it more effective for house owners to improve their existing houses.
This resulted in plans for additions and alterations to dwelling houses costing R1.24bn to be submitted to local authorities in the Western Cape for their approval this year.
Alterations and additions to non-residential buildings costing R444.5m were also approved. This was 16% more than last year.
The half-a-percent increase earlier this month in the interest rate is not likely to have much effect on the building industry.
The increase is seen as extremely modest and not likely to push up building costs.
Only if it is regarded as the start of a trend towards dearer money will the increase in rates begin to have an impact on building plans. - Cape Argus
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