The Impact of The South African Property Sector On The National Economy 2013

Description

This research is a continuation of the Property Sector Charter Council’s 2012 report “The Size of the South African Property Sector”. It aims to provide an estimation of the size of the economic activity in the property sector in terms of the annual income and expenditure flows that are generated by the sector.

The analysis covers the economic life-cycle of a property – from conception to demolition – including the management phases in between, and in doing so provides an overview of the activities and facilitators associated with the property sector.

The results of this study (phase 2) will be used to inform and direct the Property Sector Charter Council endeavours, and will provide a baseline against which transformation efforts can be assessed. Headline results

This research shows the significant contribution of the property sector to the economy, starting from the development stage up to demolition. In 2012, the research findings estimated that non-residential properties contributed R43.9 billion directly into the economy with origination contributing R3.8 billion and the property management and transacting phase contributing R38.9 billion. Residential property’s direct economic contribution was estimated to be R46.0 billion comprising origination expenditure and property management and transacting expenditure amounting to R7.5billion and R38.5 billion respectively. End of cycle activities generated R3.3 billion for the year 2012. The economic analysis covers the entire 2012 and the amounts quoted above all exclude VAT.

A macroeconomic analysis was performed and in 2012 the non residential sector contributed R80.9 billion to GDP and R25.3billion to the fiscus through various forms of taxes (source: Macroeconomic analysis based on input output multipliers determined from a Social Accounting Matrix for South Africa). The bulk of the 2012 non residential economic multiplier contribution comes from property management and transactions (R70.2 billion).

In calculating the residential economic impact, the macroeconomic analysis indicated a total economic contribution to GDP of R103.7billion and a contribution to the fiscus of R20.1billion through the various forms of tax.

The total contribution to GDP of the end of cycle stage in 2012 was R6.8 billion with R1.1billion being contributed to the fiscus.

This research is a continuation of the Property Sector Charter Council’s 2012 report “The Size of the South African Property Sector”. It aims to provide an estimation of the size of the economic activity in the property sector in terms of the annual income and expenditure flows that are generated by the sector.

The analysis covers the economic life-cycle of a property – from conception to demolition – including the management phases in between, and in doing so provides an overview of the activities and facilitators associated with the property sector.

The results of this study (phase 2) will be used to inform and direct the Property Sector Charter Council endeavours, and will provide a baseline against which transformation efforts can be assessed. Headline results

This research shows the significant contribution of the property sector to the economy, starting from the development stage up to demolition. In 2012, the research findings estimated that non-residential properties contributed R43.9 billion directly into the economy with origination contributing R3.8 billion and the property management and transacting phase contributing R38.9 billion. Residential property’s direct economic contribution was estimated to be R46.0 billion comprising origination expenditure and property management and transacting expenditure amounting to R7.5billion and R38.5 billion respectively. End of cycle activities generated R3.3 billion for the year 2012. The economic analysis covers the entire 2012 and the amounts quoted above all exclude VAT.

A macroeconomic analysis was performed and in 2012 the non residential sector contributed R80.9 billion to GDP and R25.3billion to the fiscus through various forms of taxes (source: Macroeconomic analysis based on input output multipliers determined from a Social Accounting Matrix for South Africa). The bulk of the 2012 non residential economic multiplier contribution comes from property management and transactions (R70.2 billion).

In calculating the residential economic impact, the macroeconomic analysis indicated a total economic contribution to GDP of R103.7billion and a contribution to the fiscus of R20.1billion through the various forms of tax.

The total contribution to GDP of the end of cycle stage in 2012 was R6.8 billion with R1.1billion being contributed to the fiscus.