CoW approves 181 building plans

The City of Windhoek (CoW) approved a total of 181 building plans in August, which is 13 fewer than were approved in July, according to IJG Securities. In monetary terms, the approvals were valued at N$66.5 million, 48.7% or N$63.1 million lower than in July. 1,290 building plans worth N$905.4 million have been approved year-to-date, which is 22.6% lower than the number of approvals over the same period last year, and 28.3% lower in value terms. On a twelve-month cumulative basis, 2 090 building plans worth N$1.40 billion were approved, a decline of 17.3% in number- and 29.4% in value terms over the comparative 12-month period a year ago. A total of 67 building plans worth N$119.7million were completed during the month.

August saw 151 additions to properties approved, valued at N$31.8 million, making it the highest number of monthly approvals so far this year, but the second lowest value. Year-to-date, 977 additions to properties worth N$369.7 million have received the nod, representing a year-on-year contraction in number terms of 10.6% and 42.5% in value terms. 44 additions to properties valued at N$14.3 million were completed during the month, IJG said.

Moreover, 26 residential building plans valued at N$32.0 million were approved in August, both figures falling below the year-to-date monthly averages of 35 units worth N$39.6 million. The 12-month cumulative number and value of residential approvals have been dropping consistently since August 2021. At the end of August, the 468 units valued at N$501.0 million over the 12-month period was 41.6% and 41.9% lower, respectively, than during the corresponding period a year ago. 19 Residential units worth N$92.2 million were completed during the month.

Commercial

Furthermore, 4 commercial and industrial building plans were approved during the month, valued at N$2.7 million. This bring the sector’s year-to-date approvals to 36 worth N$218.7 million, 20.0% more in number terms than at the same point in 2022 and 116.4% in monetary terms, although it is worth pointing out that one of these approvals is a N$100 million plan approved in June. 4 commercial and industrial plans valued at N$13.2 million were completed in August, IJG added.

Both the number and value of building plan approvals in August came in below the monthly averages witnessed year-to-date. The longer-term trends indicate that overall planned construction activity in the capital remains weak, IJG pointed out.

Additions to properties make up 75% of the number of 12-month cumulative building plan approvals, but only 44% of the value of approvals, indicating that the majority of planned construction projects are relatively low value. Although the cumulative number of commercial approvals are 50% higher than during the corresponding period a year ago, and 52.0% higher in value terms, these increases are from a low base.

Cumulative residential building plan approvals have been dropping consistently since the end of 2021, and at the end of August were 41.6% lower in number terms and 41.9% lower in value terms than they were a year ago, IJG said.