The cost of construction continues to rise in South Africa
The cost of construction has increased as data released by Statistics South Africa reveal construction price indices for March 2019, and the price index increased by 4,4% on the month to month rate in Contract Price Adjustment Provisions (CPAP).
Construction: What do the numbers mean?
These numbers prove the increasing cost of construction in the country, as the construction materials price indices have increased. Furthermore, in March the sector experienced a 6,6% increase caused by the producer price index of bituminous mixtures.
The producer price index for padlocks, clasps and keys also increased by a steady 5,2% for the month to month rate in this category.
The Construction Input Price Indices increased by 1,1%
The Steel and Engineering Industries Federation of Southern Africa gained a 7,6% increase through the sale of 7,9mm copper rods.The data also proves that the index for total Construction Input Price Indices (CIPI) increased by 1,1% in the month to month rate, and this is brought by the civil engineering category.
In the same month of March, a visible 9,1% increase in civil engineering came through the construction input price index, for materials purchased through the category. The data also proves that mechanical and electrical engineering input price indices have respectively increased from March 2019 compared to data from March 2018.
The construction input price index for material purchases for the whole industry has reached 6,9% between March 2018 and 2019. The biggest contributor to that rate is the sales in sand which accumulated 13,9% in its’ category. The price index for mining, construction plant and equipment reached 5,8% accumulated through the prices of lorries, trucks and vans exceeding 3,5 tons.
Which province has the most affordable construction costs?
In 2018 Stats SA data, the North West was recorded to be the cheapest in construction costs in South Africa, while KwaZulu Natal was the most expensive. The second most affordable province is Limpopo coming in at R5 270 per m2. Thereafter, Mpumalanga comes in third sitting at R5 690 per m2.
Which province has the most expensive construction costs?
The second most expensive construction province is Gauteng at R7 870 per m2 followed by the Western Cape at R7 020 per m2. KwaZulu Natal still leads the pack as the province with the most expensive construction costs.
What causes the increase in construction costs?
The cost of the actual building materials increase the construction prices, items such as bricks, cement, timber are taken into account.