Six times more for Windhoek land
Windhoek land can be sold by its municipality for six times more than the average price you would pay for the same sized land in Keetmanshoop.
On average local authorities in both Windhoek and Swakopmund could sell a 375-square-metre piece of land for N$95 000, while in other towns it could be sold for N$23 000.
It also costs N$74 000 more to construct a three-bedroom 76-square-metre standard house in Windhoek and Swakopmund than in other major towns in the country.
A report by First Capital, which monitors trends in terms of building a house in Namibia, collected the construction costs involved at Windhoek, Keetmanshoop, Swakopmund, Ondangwa, Rundu and Katima Mulilo.
On average, building materials for a three-bedroom house could cost N$240 300 in Windhoek and Swakopmund, while in other towns similar building materials could cost, N$242 570, indicating that materials remain cheaper in Windhoek and Swakopmund. Using prices from March this year, the report found the cost of building a standard three-bedroom residential house of 76 square meters can range from N$376 298 in towns such as Keetmanshoop, Ondangwa, Rundu and Katima Mulilo, while the same house with similar specifications can cost N$449 926 to build in Windhoek and Swakopmund.
The report indicates the cost of building materials is more expensive in Katima Mulilo (N$242 200) and Rundu (N$242 100), mainly due to transport costs.
“Despite the building materials cost advantage in Swakopmund and Windhoek, the high cost of both land and labour makes the cost to build a house in these two cities is expensive, compared to other towns that continue to benefit from cheaper land costs,” says the report.
The price of land and labour is more expensive in Windhoek and Swakopmund than anywhere elsewhere in the country.
Due to the high cost of the price of land in most upper locations both in Windhoek and Swakopmund, the report only considered the middle and low-income residential locations for the prices of land, which could be a reflection of the cost to an average household.
An average 375 square metres of land costs N$110 000 in Windhoek and in Swakopmund it costs N$75 000.
Land remains cheaper in Keetmanshoop, followed by Katima Mulilo.
The average price of land measuring 375 square meters will cost you N$18 200 in Keetmanshoop.
Both Rundu, Ondangwa and Katima Mulilo sells land measuring 375 square meters at no more than N$24 100, which is 4.5 times less than the price of land in Windhoek.
“Land prices remain higher in Windhoek than in other town in the country, due to the high cost of servicing land which is transferred to households when buying land,” says the report.
Equally, labour in Windhoek and Swakopmund could cost 2% more than in other towns, the report says.
In the presented scenario, where the average building materials cost to build a three-bedroom standard residential house is N$241 331, labour could cost N$100 926 on average in both Windhoek and Swakopmund, while in other towns it costs N$97 028.
According to the report the higher labour cost in Windhoek is explained by the extra workload due to excavation of rock surface ground, to create a foundation for construction, compared to soft surface foundation excavation in other towns.
The report adds that it was 4.3% more expensive to build a standard house in March 2018, compared to March 2017. On average the price of land increased by 4.8% in March 2018 compared to a year ago.
Land remains the subcomponent of building cost which recorded the highest price increase, relative to other cost components such as labour and building materials.
Building materials prices were 4% higher in March 2018, compared to the same month a year ago.
Labour costs, which is also inclusive of the profit margin for contractors, increased by 4.4% in March 2018 compared to the previous year. Overall all residential building costs increased moderately by 4.3% higher in March 2018, compared to the same month a year ago.
The report used for comparison purposes a standard three-bedroom residential house structure measuring 76 square meters, with among other 220cm (double brick) external walls, 110cm (single brick) internal walls, an average wall plate height of three metres with a ceiling height of 2.7 metres and a corrugated pitch roof.
The building material prices collected covers a list of raw construction materials identified to satisfy the construction needs of a standard house.
ELLANIE SMIT
On average local authorities in both Windhoek and Swakopmund could sell a 375-square-metre piece of land for N$95 000, while in other towns it could be sold for N$23 000.
It also costs N$74 000 more to construct a three-bedroom 76-square-metre standard house in Windhoek and Swakopmund than in other major towns in the country.
A report by First Capital, which monitors trends in terms of building a house in Namibia, collected the construction costs involved at Windhoek, Keetmanshoop, Swakopmund, Ondangwa, Rundu and Katima Mulilo.
On average, building materials for a three-bedroom house could cost N$240 300 in Windhoek and Swakopmund, while in other towns similar building materials could cost, N$242 570, indicating that materials remain cheaper in Windhoek and Swakopmund. Using prices from March this year, the report found the cost of building a standard three-bedroom residential house of 76 square meters can range from N$376 298 in towns such as Keetmanshoop, Ondangwa, Rundu and Katima Mulilo, while the same house with similar specifications can cost N$449 926 to build in Windhoek and Swakopmund.
The report indicates the cost of building materials is more expensive in Katima Mulilo (N$242 200) and Rundu (N$242 100), mainly due to transport costs.
“Despite the building materials cost advantage in Swakopmund and Windhoek, the high cost of both land and labour makes the cost to build a house in these two cities is expensive, compared to other towns that continue to benefit from cheaper land costs,” says the report.
The price of land and labour is more expensive in Windhoek and Swakopmund than anywhere elsewhere in the country.
Due to the high cost of the price of land in most upper locations both in Windhoek and Swakopmund, the report only considered the middle and low-income residential locations for the prices of land, which could be a reflection of the cost to an average household.
An average 375 square metres of land costs N$110 000 in Windhoek and in Swakopmund it costs N$75 000.
Land remains cheaper in Keetmanshoop, followed by Katima Mulilo.
The average price of land measuring 375 square meters will cost you N$18 200 in Keetmanshoop.
Both Rundu, Ondangwa and Katima Mulilo sells land measuring 375 square meters at no more than N$24 100, which is 4.5 times less than the price of land in Windhoek.
“Land prices remain higher in Windhoek than in other town in the country, due to the high cost of servicing land which is transferred to households when buying land,” says the report.
Equally, labour in Windhoek and Swakopmund could cost 2% more than in other towns, the report says.
In the presented scenario, where the average building materials cost to build a three-bedroom standard residential house is N$241 331, labour could cost N$100 926 on average in both Windhoek and Swakopmund, while in other towns it costs N$97 028.
According to the report the higher labour cost in Windhoek is explained by the extra workload due to excavation of rock surface ground, to create a foundation for construction, compared to soft surface foundation excavation in other towns.
The report adds that it was 4.3% more expensive to build a standard house in March 2018, compared to March 2017. On average the price of land increased by 4.8% in March 2018 compared to a year ago.
Land remains the subcomponent of building cost which recorded the highest price increase, relative to other cost components such as labour and building materials.
Building materials prices were 4% higher in March 2018, compared to the same month a year ago.
Labour costs, which is also inclusive of the profit margin for contractors, increased by 4.4% in March 2018 compared to the previous year. Overall all residential building costs increased moderately by 4.3% higher in March 2018, compared to the same month a year ago.
The report used for comparison purposes a standard three-bedroom residential house structure measuring 76 square meters, with among other 220cm (double brick) external walls, 110cm (single brick) internal walls, an average wall plate height of three metres with a ceiling height of 2.7 metres and a corrugated pitch roof.
The building material prices collected covers a list of raw construction materials identified to satisfy the construction needs of a standard house.
ELLANIE SMIT
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