Building costs in South Africa are rocketing, according to a new report released by Industry Insight.
Average building costs increased by 19.1% year on year during the third quarter of 2006, compared with an annual increase of 11.4% in the second quarter and 5.2% in the first quarter.
The increase was based on more than 60 projects awarded in Gauteng, the Western Cape and KwaZulu-Natal.
Profitability has come under pressure because of the continued rise in input costs, with the availability of material playing a key role in the final determination of the price.
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