building plans private sector

Photo: pixabay.com

Stats SA: Private sector struggles to get building plans passed by municipalities

According to Stats SA, more building plans have been thrown out by municipalities in the first half of 2019, than in the same period last year.

building plans private sector

Photo: pixabay.com

Based on the data laid out in Statistics South Africa’s latest monthly survey on ‘selected building statistics of the private sector as reported by local government institutions‘, it appears that there is a level of disconnect between the private sector and local government in terms of officiating the improvement of our infrastructure.

Stats SA: How to interpret the data

South Africa’s stats authority makes the point of collecting data on building plans passed and buildings completed that are financed by the private sector.

This information, it says, is crucial in analysing ” the state of economy and formulation of economic policy.”

“Furthermore, the results are important inputs to estimate the gross domestic product (GDP) and to calculate the Composite Leading Business Cycle Indicator. The data are extensively used by the private sector,” Stats SA notes.

The scope of this survey covers the business relationship between local government and the private sector, in terms of:

  • the passing of building plans; and
  • the final inspection of completed buildings

Private sector and local govt: What do the numbers say?

According to the data collected by Stats SA, a look at the number of private-sector building plans passed in the last six months (from June 2019), compared to the same period in 2018, shows a gaping drop.

The stats authority found that the value of building plans passed decreased by 6.1%, a negative R3.4-billion drop in January-June 2019, compared to the same period in 2018.

This is where these decreases were seen:

  • Non-residential buildings: -R1.7-billion
  • Residential buildings: -R1.5-billion
  • Additions and alterations: -R123.6-million

Provinces with the highest pass-rate in building plans

The Western Cape led as the province with the largest negative contribution towards the drop in building plans passed in the first half of 2019.

The table below shows data on provinces that had positive and negative contributions to the current state of building plans submitted to local governments by the private sector.

statistics south africa private sector local government
Source: Statistics South Africa

Buildings reported as completed to larger municipalities

Of the six provinces that recorded year-on-year increases in the value of buildings completed in the first half of 2019, these three had the largest positive contributions:

  • Gauteng: R9.9-billion
  • KwaZulu-Natal: R2.5-billion
  • Western Cape: R1.1-billion

The table below shows data on provinces that had positive and negative contributions to the current value of buildings completed.

statistics south africa private sector local government
Source: Statistics South Africa