Building plans passed, buildings completed decline almost 6%

Building plans passed in the three months ending in January 2026, decreased by 10.5% compared with the previous three months. This is according to Stats SA selected building statistics of the private sector as reported by local government institutions.
The decrease was largely due to a lack of activity in non-residential buildings, additions and alterations.
Optimum Investment Group Economic Advisor, Dr Roelof Botha, says there was also little activity in residential building in the country since the record high interest rate hike in 2022.
“The value of building plans passed and buildings completed in South Africa are both a cause for concern. Because although there was a slight uptick in buildings completed, the building plans passed indicator in the Afrimat Index declined year-on-year by almost 6%. This is frightening stuff. And what that tells us is that we are heading for a shortage of houses, especially residential buildings in South Africa at some point in time, there has been very little activity ever since the record high interest rates when the prime rate went to a record highest level in 15 years, 11.75%.”
On a year-on-year basis, five of the nine provinces in the country saw a decrease in the value of buildings completed in January 2026.
The largest negative contributors were Gauteng and KwaZulu-Natal.
Dr Botha has also blamed lack of efficiency at municipal level.
“Year after year, the government tells us we’re going to spend R1 trillion on infrastructure. It’s not happening. Unless the municipalities are brought back in line and made more efficient and functional in South Africa, the construction sector will keep on battling if they do manage to fix the municipalities. And it can be done because there are role models in at least one province in South Africa. Then, you know, we’re home and dry. Viewers must just remember that construction is the most labour intensive sector of the economy. And I hope somebody at SARS is listening because for every job you create, you are broadening the tax base.”
www.sabcnews.com, https://www.sabcnews.com/sabcnews/1114395-2/