CoW approves building plans worth N$496 million

A total 314 building plans valued at N$496 million were approved by the City of Windhoek (CoW) in July 2022, according to Simonis Storm. Of the 314 buildings plans approved, 179 were new residential additions, 112 new residential properties, 16 new walls, 5 new commercial buildings and 2 new pools.In June 2022, 249 building plans worth N$399.5 million were approved. When compared to July, the number of building plans approved increased by 40.8%.Simonis notes that building completions in Windhoek continued rising for a third consecutive month.“During July 2022, 88 building completions took place, compared to 74 building completions in the prior month and 36 in July 2021. The completed projects had a total value of N$51.7 million, compared to N$43.9 million for projects completed in June 2022.”It included 46 residential additions valued at N$6.8 million, 32 residential properties worth N$41.4 million, 1 commercial building valued N$3 million and 9 walls worth N$0.5 million, Simonis Storm pointed out.In addition, the Swakopmund Municipality approved 26 building plans during July 2022, compared to 90 in the prior month and 37 in July 2021. Approved plans have a total value of N$43.1 million, compared to N$74.1 million in June 2022 and were solely for 26 new residential plans. Building completions in Swakopmund rebounded in July 2022, following a significant drop in June 2022. During the month, 49 buildings were completed, compared to 18 in the prior month and 12 in July 2021.MortgageDespite more modest growth in household mortgages compared to corporate mortgages, pipeline construction activity in the residential segment of the market continues to record more momentum. Household mortgage growth averaged 2.4% year to date, compared to 4.3% for corporates. At the same time, municipalities in Windhoek and Swakopmund approved a combined 830 residential building plans year to date with a value of N$820 million, compared to only 25 commercial building plans being approved valued at N$65.3 million.“Naturally, we are excluding other crucial municipalities such Walvis Bay and Oshakati), but the data seems to suggest that either we could see an increase in household mortgages to finance these building projects in the near future, or households might be financing residential construction by other means in response to rising interest rates,” Simonis Storm added.It is interesting to note that holdings in money market and enhanced cash unit trust funds have increased by 18.9% over the last two years, from N$20.9 billion in the second quarter of 2020 to N$24.8 billion in the corresponding quarter of 2022, according to data from Sanlam Namibia. “It could be that these funds are used by some households to finance construction or renovation projects, bypassing loans and rising interest rates. On the other hand, slower growth in corporate mortgages could possibly be explained by companies enforcing hybrid working arrangements, as demand for office space wanes,” Simonis Storm said.

CoW approves building plans worth N$496 million

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CoW approves building plans worth N$496 million

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