Growth in building activity slows down in the first quarter of 2013 Year-on-year growth in the volume of building activity, i.e. the number of housing units for which building plans were approved and the number of housing units completed in the South African market, slowed down in the first quarter of 2013 from the fourth quarter of last year. However, growth in planning and construction activity in the segment for flats and townhouses remained strong in the first quarter of the year. Growth in levels of building activity in the category of housing larger than 80m² remained subdued in the first quarter compared with the corresponding period a year ago. The real value of plans approved for new residential buildings increased by 15,6% year-onyear (y/y), or R978,3 million, to R7,26 billion in the first three months of 2013 from R6,29 billion a year ago. The real value of residential buildings reported as completed was up by 6,6% y/y, or R318,3 million, to R5,18 billion in the first quarter of the year from R4,86 billion in the same period last year. Although the number of building plans approved for new housing increased by only 5% y/y in the first quarter of the year, March saw growth of almost 18% y/y, which was mainly the result of strong growth in the planning phase of around 57% y/y in the category for houses smaller than 80m². A significant contraction in planning activity occurred in this segment of the market towards the end of 2012 and early this year. The construction phase of new housing saw growth of just above 10% y/y in the first quarter of the year, impacted by strong growth of 37,4% y/y in February, but substantially lower growth of only about 2% y/y in March. In the category of smaller-sized housing, growth of 28,9% y/y was recorded with regard to the number of units reported as completed, while the construction of houses larger than 80m² and flats and townhouses contracted by 18,3% y/y and 21,9% y/y respectively in March. Residential building activity is expected to continue to reflect conditions with regard to the economy, household finances, consumer confidence and factors impacting the market for new and existing housing, which will show up in the demand for and supply of new housing, property market activity, transaction volumes, property price growth and the demand for mortgage finance.