Large Properties Push Value of Windhoek Building Plans

THE City of Windhoek approved 278 building plans valued at N$189,1 million in August, IJG Securities said yesterday.

From January to August, 1 957 plans were approved compared to 2 202 plans over the same period last year.

In value terms, however, plans approved so far this year are worth N$1.61 billion compared to N$1.44 billion for the same period in 2013, up 12%.

“This increase is mostly due to three large commercial projects that were approved by the municipality in February. On a monthly basis, fewer plans were approved in August when compared to July, while the value of plans approved is up 125% month on month,” IJG said in a report.

The report said the difference in value is mainly because more expensive commercial and industrial projects were approved in August.

It said should the trend of the value of plans approved be maintained for the remainder of the year, 2014 will most likely be equivalent to the record 2012 year.

IJG said ignoring monthly volatility, the trend implies that there is an average of N$167 million worth of building plans per month, which will match 2012.

In terms of residential units, 330 units have been approved so far this year up 2,2% from the comparable period of 2013.

Plans for flats and houses approved so far this year are valued at N$355 million in contrast to the 323 million plans worth N$521 million in the same period last year.

In terms of the additions front, 1 545 additions to the value of N$651 million have been approved, down 277 plans when compared to the same period last year and down N$131 million in value.

The report said 82 commercial property plans were approved from January to August, an increase compared to the 57 plans that were approved at the same time in 2013.

“The value of commercial building plans approved is up 341 % on last year this time. The value of commercial and industrial buildings approved thus far in 2014 is N$697 million compared to N$158 million in the same period last year,” IJG said.

The report said the higher figure for commercial properties is due to a few large projects approved, which make up more than half of the total value of plans approved for the year thus far.

It said the 12 month cumulative number of plans approved fell to 3 055 in August compared to 3 074 in July, with the January to August growth rate contracting by 9,8%, turning negative for the first time in May after 18 months of positive growth.

The 12-month cumulative value of plans approved totalled N$2,4 billion, down 1,8% year on year.

“In our view, the construction sector will remain one of the leading growth and development sectors in the Namibian economy through 2014, with both private sector and government having aggressive development plans. However, many such plans fall out of the Windhoek municipal area, and as such are not captured in the monthly building plan statistics,” the report said.

Source : The Namibian