GAUTENG has become the first province in SA to get an unqualified report for all 12 of its departments and the legislature from the auditor-general for the 2002-03 fiscal year.

A proposal by the Gauteng Superhighways Consortium to extend the Ben Schoeman Highway between Johannesburg and Pretoria has been put on hold by the National Roads Agency while more studies are undertaken to determine the feasibility of some of the routes.

Established in 2000, to 92,7% in December 2002 and 91,7% in May this year. Each percentage point drop costs the city about R50m in lost income a year.

Gauteng must reduce traffic congestion on its roads urgently if it wants to maintain its competitive edge as the economic powerhouse of Africa, transport MEC Khabisi Mosunkutu warned yesterday.

BUSINESS conditions in the building sector have deteriorated in the second quarter as high interest rates take a bite out of residential property demand, a survey from the University of Stellenbosch's Bureau of Economic Research shows. 

The bureau's business confidence index for the building industry slipped to 54 last quarter from 58 in the first quarter as economic growth slowed. The delayed effect of last year's four interest rate hikes "have now left a mark on the industry", the bureau said.

Residential property was worst hit by the high interest rates and a slowdown in gross domestic product growth, with building contractors' profit margins coming under pressure in the second quarter, resulting in job losses. 

Domestic demand has been fairly resilient in the first quarter, with the construction sector benefiting from capital expenditure projects in both the public and private sector, according to last month's Reserve Bank quarterly bulletin.

However, the survey results signal much weaker conditions in the second quarter.

"Growth is slowing down in the building sector, which has hurt business confidence. Retrenchments have increased, especially in the residential sector, as business conditions have deteriorated," said the bureau's senior economist Charles Martin.

Civil engineers, typically involved in large government infrastructural projects, experienced far better business activity in the second quarter compared to other sectors of the construction sector.

Civil engineering firms said competition for tenders was intense and profit margins were under pressure, according to the bureau.

"The majority of contractors polled expect the market to weaken somewhat in the third quarter," said Martin. A lower interest rate this year was likely to boost the industry's prospects, but this would materialise only next year.

"Conditions are weaker, but this is not a recession. We will see a gradual pick-up in business confidence by the fourth quarter, but a full turnaround is only likely next year," said Martin.

The confidence index has a tendency to lead the official building figures released by Statistics SA by at least two quarters.

Stats SA's April release of building figures shows an 8,4% year on year drop in actual building plans passed, with less building plans passed in Gauteng, Eastern Cape, Mpumalanga and Northern Cape this year compared to last year.

The real value of buildings completed in April increased by 2,7% year on year, mainly due to a sharp rise in non residential buildings, according to Stats SA's figures.

The survey shows building costs have remained high, despite the strong rand reducing the price of imported inputs.

However, costs are likely to moderate during the year, with the bureau forecasting building costs to grow 8% this year.      

DEVELOPMENT OPPORTUNITIES IN :

• Precinct 3: JIA Logistics Centre

• Precinct 8: ACSA Park

 JIA LOGISTICS CENTER

• The Logistic Center will copmrise of a 10 hectare park for small and medium sized freight de-grouping and logistic activities.

• New customers can start planning their facilities and land can be obtained through a long term lease with ACSA.

ACSA PARK

• More than 140 hectares of gross usable land for development of commercial and industria land.

• Exellent access to Gauteng main Road network i.e. the N12, R21and R24.

• Perfectly located at conversions of North/South and East/West Commercial Development axis.

• Land availible for development through joint ventures with risk and capital sharing partners. Land to be contributed as part of ACSA share in joint Venture.

• Land values in feasibilities competitive with surrounding market and values.

• Land not for sale, but availible for development through long term arrangements with proposed stakeholders.

• Conceptual planning completed allowing flexibility for any tenant requirement.

“BIGGER is better” is the message being sent out by the property loan stock and property unit trust management industry. However, it’s one that property loan stock group Spearhead is choosing to ignore.

GEDA has a number of promotional activities in support of Gauteng's Blue IQ infrastructural investment drive

GAUTENG local government and development planning MEC Trevor Fowler will deliver his department's R244m budget at the legislature today, allocating R116m for capital expenditure in the 2003-04 financial year.

South Africa's textile industry was in for a R400 million investment boost following decisions by foreign-local joint ventures to put up three greenfields plants, it emerged at the weekend.