Construction activities in Windhoek declining
2022 is off to a weaker start than 2021
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, Simonis Storm said.
The number of building plans approved as well as completion of construction activities in Windhoek have been declining since the beginning of the year, statistics released by Simonis Storm indicated.
A total of 188 building plans were approved during April 2022, compared to 247 recorded in March 2022, a 23.9% decrease. When compared to April 2021, building plans approved declined by 28.9% (268).
During the period under review, 86 new building projects were completed, compared to 130 in the prior month and 235 in April 2021, a decline of 33.8% month on month and 63.4% year on year.
The completed projects had a total value of N$95.6 million compared to N$96.1 million for projects completed in April 2021. They were mainly for additions (N$60.1 million), new houses (N$33.1 million) and walls (N$2.4 million).
During the first four month of 2022, 478 building projects have been completed, compared to 550 in 2021 and 361 in 2020 for the same period
“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,” SS said.
Additions continue to take 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 home bound. 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, SS added.
Swakopmund
Construction activities at the coastal of Swakopmund seem to be showing green shoots. During April 2022, a total of 95 building plans were approved in Swakopmund, compared to 34 in the prior month and 38 in April 2021. Approved plans have a total value of N$119 996 557 and include residential (94) and institutions (1), SS pointed out.
The start of 2022 recorded the highest number of building completions in the last 2-years. Year to date, 133 building projects have been completed in 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 and 34 in April 2021, an increase of 58.3% month on month and 11.8% year on year.
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), SS said.
“Faster growth in corporate mortgages might also suggest that we might see an uptick in additions or new commercial properties. Annual change in household mortgages are declining and might suggest that households are using savings to pay for home additions. 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,” SS concluded.
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A total of 188 building plans were approved during April 2022, compared to 247 recorded in March 2022, a 23.9% decrease. When compared to April 2021, building plans approved declined by 28.9% (268).
During the period under review, 86 new building projects were completed, compared to 130 in the prior month and 235 in April 2021, a decline of 33.8% month on month and 63.4% year on year.
The completed projects had a total value of N$95.6 million compared to N$96.1 million for projects completed in April 2021. They were mainly for additions (N$60.1 million), new houses (N$33.1 million) and walls (N$2.4 million).
During the first four month of 2022, 478 building projects have been completed, compared to 550 in 2021 and 361 in 2020 for the same period
“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,” SS said.
Additions continue to take 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 home bound. 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, SS added.
Swakopmund
Construction activities at the coastal of Swakopmund seem to be showing green shoots. During April 2022, a total of 95 building plans were approved in Swakopmund, compared to 34 in the prior month and 38 in April 2021. Approved plans have a total value of N$119 996 557 and include residential (94) and institutions (1), SS pointed out.
The start of 2022 recorded the highest number of building completions in the last 2-years. Year to date, 133 building projects have been completed in 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 and 34 in April 2021, an increase of 58.3% month on month and 11.8% year on year.
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), SS said.
“Faster growth in corporate mortgages might also suggest that we might see an uptick in additions or new commercial properties. Annual change in household mortgages are declining and might suggest that households are using savings to pay for home additions. 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,” SS concluded.
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