Red flags for South Africa’s property market

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Construction companies are not putting together as many building plans as they used to – indicating a worrying trend.

Residential building plans have slowed into negative growth territory in South Africa, reported Absa.

The property strategist found that growth turned negative by a total of -12.9% when compared to last year. Interestingly, this comes off the back of a +11.8% increase over the second quarter of this year. “However, it was still too early to see negative growth in completions as of the 3rd quarter of 2022, with the number of units completed still growing positively year-on-year by +3.5% in that quarter. However, this growth rate represents a marked slowdown from the +19.6% rate of the prior quarter,” said Loos.

 

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