Large-scale infrastructure projects in South Africa are rapidly increasing land costs and the costs of building. Some fear these projects may create a slow-down in private development.
"Speculators are anticipating rentals increasing 10%-20% over the next year or two. The main factors driving these rising rentals are rapidly rising building costs and land prices, both increasing at well above 10% a year."
"Many of the major government infrastructure projects pertaining to the Gautrain rapid rail link, the 2010 Fifa World Cup, La Lucia airport and others have not started in earnest."
"But over the next year or two we will see further upward pressure on building costs to the degree that there is a risk that the public sector projects could crowd out private sector projects."
FULL STORY: Public projects push up building costs
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