Building activity expanded at its highest rate since the start of the recession in 2008.
Jeffreys Bay has been no exception and there are a number of new residential houses being built, with Marina Martinique experiencing a surge in building activities.
The demand for building materials increased during 1Q2013. This has resulted in the confidence of retailers of building materials registering the biggest increase of the sub-components of the FNB/BER building confidence index.
Confidence now stands at 59 index points. In addition, wholesalers of building materials (not included in the index) also saw an improvement in in confidence on the back of rising sales and order volumes during 1Q2013.
“The rising demand for building materials shows that the building recovery is gaining some traction. The increase in building activity of main contractors seems to be leading to higher growth in building material sales. However, further sales growth could be inhibited if consumer finances come under more pressure” said Sizwe Nxedlana, chief economist at FNB.
The building pipeline also looks more promising, especially that of architects. This resulted in an increase in architects’ confidence from 29 to 38 index points. Quantity surveyor confidence also increased, despite a modest deterioration in activity.
Sub-contractor confidence remained largely unchanged, slipping by one index point to 41 during 1Q2013. This was the only component to register lower confidence during the quarter.
Sub-contractors are further down the building cycle. This means that much of the increase in main contractor activity in 1Q2013 will likely only filter through to this sector later on.