Africa-Press – Namibia. A TOTAL of 188 building plans with a combined value of N$107,6 million were approved in Windhoek during April 2022, compared to 247 in the prior month, realising a drop of 23,9% m/m, and 268 in April 2021 for a 29,9% drop y/y.
The approved plans include 114 additions, one commercial plan, 58 houses and 15 walls.
According to a Simonis Storm Securities analysis, Windhoek is off to a weaker start in 2022 than 2021, in terms of construction activity, which has been on a declining trend over the last three months.
“Year to date, 478 building projects have been completed, compared to 550 in 2021 and 361 in 2020 for the same period,” said the analysis.
During April 2022, a total of 86 new building projects were completed, compared to 130 in the prior month, down 33,8% m/m, and 235 in April 2021, a drop of 63,4% y/y.
The completed projects had a total value of N$95,6 million, compared to N$96,1 million for projects completed in April 2021, and were mainly for additions (N$60,1 million), new houses (N$33,1 million) and walls (N$2,4 million).
“We might see more commercial projects taking off in future as annual growth in corporate mortgages has been trending upwards year to date, whereas annual growth in household mortgages are trending downward,” Simonis observed.
Additions continue to take the majority share of new building plans being approved.
Home additions or improvements might have resulted from certain households creating home offices or upgrading their homes, due to being more housebound.
In the last two years, Klein Windhoek (monthly average of N$8,1 million), Khomasdal (N$5,5 million), Pionierspark (N$3,9 million), Kleine Kuppe (N$3,1 million) and Otjomuise (N$2,9 million) recorded the highest average value in home additions per month.
These value additions could likely increase house prices in these neighbourhoods and support further growth to overall property prices in central Namibia.
According to FNB’s House Price Index Report, central property prices increased by 0,5% in 2021, compared to 2020.
Meanwhile, a total of 95 building plans with a total value of N$120 million were approved at Swakopmund during April 2022, compared to 34 in the prior month and 38 in April 2021.
Approved plans include 94 residential structures and one institutional structure.
The start of 2022 recorded the highest number of building completions in the last two years.
Year to date, 133 building projects have been completed at Swakopmund, compared to 121 in 2021 and 131 in 2020. During April 2022, 38 building projects were completed, compared to 24 in the prior month, up 58,3% m/m and 34 in April 2021, up 11,8% y/y.
“The completed projects had a total value of N$27,1 million, and were mainly for residential additions (N$3,4 million), new houses (N$18,6 million), new flats (N$4,6 million) and additions to commercial buildings (N$424 800).
The outlook on construction activity seems to be declining in Windhoek, whereas construction activity at Swakopmund might increase based on the year to date trend of plan approvals.
However, the rise in building costs and interest rates might lead to building project delays or postponements for the plans that have been approved in recent months.
For More News And Analysis About Namibia Follow Africa-Press
