Study reveals that property constitutes 78% of all fixed capital stock in SA economy

Posted On Friday, 13 July 2018 11:56 Published by
Rate this item
(0 votes)

The Property Sector Charter Council today (11 July, 2018) released the results of its latest study: The South African Property Sector Economy Contribution.

Portia Tau-Sekati

The analysis in the latest report uses the life cycle of a property, from origination to transaction and to its end cycle stage. It was and remains the most resourceful study of its kind in the country, highlighting the contribution of the property sector to the economy.

This research continues from its 2015 report, which measured the size of the property market in South Africa at a massive R5.8 trillion.

A key finding of the research study reveals that the South African Reserve Bank in the same year estimated the total value of all fixed capital stock–Property, machinery, transport at R7,6tn.  This means property constitute 78% of all fixed capital stock in the country.

In 2015 total direct expenditure of the property sector was R132bn and the sector made an important total tax contribution of R62bn, showing a growth of 35% from the previous 2013 report with R46bn tax contribution. The report also confirms a total number of 278 000 jobs in the property sector. The highest recorded levels of employment are during the transaction phase which are sustained over time versus project -based jobs. All of these figures are expected to play a significant role in the socio-economic transformation of the country.

CEO of the Property Sector Charter Council, Portia Tau-Sekati says: “The property sector makes a significant contribution to the country’s economy and it is important to continually review this research. Aside from the fact that no reliable figures have existed on the size and impact of the sector before this, in a sector this big and this important as property there should be ample opportunity for transformation to take place.”

Tau-Sekati explains that detailed research is being carried out in various phases, with each phase providing a valuable understanding of the sector and ultimately enhancing the consolidated body of knowledge about the property sector that will foster a consistent understanding of the sector for measurement and evaluation.

This event was sponsored by Standard Bank.Standard Bank are a major player in funding both commercial and residential real estate. Jonas Malebye, Head of Investment banking South Africa, says the event holds substantial value for the property sector. “Standard bank is proud to sponsor this event that enhances the knowledge base of the sector, contributes to its growth and benefits all participants.”

The research was commissioned by the Property Sector Charter Council and compiled by the Stratecon Applied Economic Research. 

Last modified on Friday, 13 July 2018 14:25

Most Popular

Balwin announces 4 544 rental apartment deal, Unique design & architecture to disrupt rental market

Feb 20, 2019
Stephen Brookes Balwin Properties
JSE listed Balwin Properties, South Africa’s largest turnkey sectional-title developer,…

New Maluti Crescent to open on 21 March and transform shopping in Phuthaditjhaba

Feb 28, 2019
Maluti Crescent Shopping Centre will open on 21 March 2019 when it will officially become…

Fairvest Property Holdings Limited announced solid results for the six months to December 2018

Feb 27, 2019
Fairvest Property Holdings Limited today again announced solid results for the six months…

Redefine Properties on track to drive sustainable growth in ‘watershed’ election year

Feb 25, 2019
While economic conditions remain challenging, Redefine Properties (JSE: RDF) continues to…

Renewable energy programme attracts R209.4 billion to SA economy

Feb 25, 2019
The Renewable Energy Independent Power Producer Procurement Programme (REIPPP) is making…

Please publish modules in offcanvas position.