Low business and consumer confidence are placing the property sector under pressure. Construction activity is concentrated in upper-market business hubs, as the rising costs of building prompts property developers to scale down or concentrate on projects abroad. The value of recorded building plans passed in SA was down 8.5% (down R2.19bn) in the first quarter of 2017 compared with the first quarter of 2016. Planned non-residential building fell by a dramatic 31.2% (down R2.5bn). There were also large year-on-year decreases in plans passed for shopping space in KwaZulu-Natal (which was down R1.4bn), Gauteng (down R730m) and the Western Cape (down R717m). The value of buildings reported as completed rose by 23.7% (up R3bn) in the first quarter of 2017 compared with the first quarter of 2016.
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