Search:  
Western Cape Business News
797
VIEWS

Send  Share  RSS  Twitter  07 Sep 2011

BUILDING: In Search Of A Silver Lining

 



Recent Western Cape Business News

DARK clouds remain fixed over the building-construction industry as non-residential building activity is now also contracting, according to Bellville-based Rode & Associates.

In contrast to the residential sector, building activity on the non-residential front has until now been able to put up a brave face. But, in the first quarter of 2011, real gross fixed capital formation in non-residential building contracted (-1%) for the first time in eight years. Over the same period, real gross fixed capital formation in residential buildings were down by 5%.

As a silver lining around the dark cloud, fewer contractors are now reporting that building activity is down when compared to a year earlier. This is according to the BER at Stellenbosch University. In its survey, the Bureau for Economic Research ask a panel of residential and non-residential contractors to rate whether building activity was ‘up’, ‘the same’ or ‘down’ when compared to a year ago. The percentage reporting ‘down’ is then subtracted from the percentage respondents saying ‘up’ to arrive at a net percentage balance. Despite still being negative in the second quarter of 2011, the northward trend of the metric since 2009 does imply that fewer respondents are now of the opinion that conditions are getting worse.

Building activity is, of course, driven by property fundamentals. The first hesitant stirrings of an improvement in the commercial property market are discernible, but don’t hold your breath as yet. As for residential properties, there is not even a hesitant stirring. Hence, the prospects for the building-construction industry remain rather poor. To survive, players in this industry will have to exploit niches,” says John Lottering of Rode & Associasiates.


 
 
 
calvert-gasAfriwire and Steel (Pty) Ltdit-online-studies-western-capeconference-venue-cape-town
 
   
 
 
 
  Accomodation
Accommodation


Online Foreign Exchange
Foreign Exchange


Directory
Directory


Fax
Fax 2 Email


Finance
Finance


Furniture
Furniture


Casino
Online Casino


Restaurant
Restaurant


Auctions
Shop Online


Study IT
Study IT Online


Web design
Web Design


Weddings
Weddings


Work
Work from Home
 
 
 
 
 
Company News
 
 

 

© 2019 www.wcbn.co.za. All rights reserved.

Daily Newsletter Subscription

 

Subscribe to the Western Cape Business News Daily News and information email (it's free).

Thank You
Your email address has been added.

Name:
Email Address: