The real value of building plans passed in South Africa rose by 23.4% year-on-year (y/y) in March 2005 to 3.2 billion constant 2000 rand compared with a 0.9% y/y rise in February 2005 to 2.8 billion constant 2000 rand after increasing by 29.7% y/y to 2.2 billion constant 2000 rand in January compared with a 32.1% y/y rise in December, Statistics South Africa reported.

The seasonally adjusted real value of recorded building plans passed by municipalities during the first quarter increased by 2.1% compared with the fourth quarter and rose by 24.5% y/y.

The increase of 2.1% was due to increases in the seasonally adjusted real value of non-residential buildings (+11.5%) and additions and alterations (+9.2%). However, a decrease of 3.7% was reported for residential buildings, due to the large increase in the recorded building plans passed for residential buildings during the fourth quarter of 2004.

The real value of building plans passed in South Africa increased by 33.0% y/y to 31.947 billion constant 2000 rand in 2004 after a 11.3% rise in 2003.

The largest increase in 2004 in the value of recorded building plans passed was reported for residential buildings (up 39.6% to 19.29 billion constant 2000 rand), followed by additions and alterations (up 27.6% to 8.177 billion constant 2000 rand) and non-residential buildings (up 18.1% to 4.521 billion constant 2000 rand).

The 2004 peak increase of 51.9% y/y was set in August. August's increase was the third month that the y/y increase exceeded 40%, beating March's 47.7% y/y and February's 40.7% y/y.

South Africa is currently experiencing a housing boom with South African house prices increasing by 32.2% in 2004 compared with 21.4% y/y in 2003 and 15.2% y/y in 2002 according to South African commercial bank Absa's (ASA) monthly House Price Index (HPI).

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