The City of Windhoek reported a 48.7% decrease in building plan approvals for the month of August in the comparative period, official figures show.
According to figures from IJG Securities, 181 building plans were approved last month, which is 13 fewer than in July. The total value of these approvals amounted to N$66.5 million, a stark decline of N$63.1 million compared to the previous month.
Year-to-date, a total of 1,290 building plans have been given the green light, amounting to N$905.4 million. These figures reflect a 22.6% decrease in the number of approvals and a 28.3% decrease in their total value compared to the same period last year.
Over a twelve-month cumulative basis, the city has witnessed a decline of 17.3% in the number of approved building plans, which now stands at 2,090.
The value of these plans has also seen a significant decrease, plummeting by 29.4% to N$1.40 billion compared to the same period a year ago. The completion of 67 building plans worth N$119.7 million during August offers a glimmer of activity amid the overall slowdown.
Experts at IJG Securities noted that both the number and value of building plan approvals in August are below the monthly averages seen year-to-date, signalling ongoing weakness in planned construction activity within the capital.
“Additions to properties have dominated the approvals, accounting for 75% of the cumulative number of building plan approvals over the past twelve months,” the firm said.
However, they represent only 44% of the total value of approvals, indicating a preponderance of relatively low-value projects.
Meanwhile, commercial approvals have experienced a 50% increase in number and a 52.0% increase in value compared to the same period a year ago, albeit from a low starting point.
In contrast, “residential building plan approvals have consistently declined since the end of 2021, with August figures showing a 41.6% decrease in number terms and a 41.9% decrease in value compared to the previous year.”
IJG notes that August 2023 saw the highest number of additions to properties approved this year, with 151 plans given the go-ahead, valued at N$31.8 million.
Nevertheless, the value of these approvals remained relatively low, making it the second-lowest monthly value this year.
“Year-to-date, 977 additions to properties worth N$369.7 million have been approved, marking a year-on-year contraction of 10.6% in number terms and a substantial 42.5% decrease in value terms. A total of 44 additions to properties valued at N$14.3 million were completed during the month,” reveals the firm.
The residential sector continues to face challenges, with 26 residential building plans valued at N$32.0 million approved in August. These figures fell 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 consistently declining since August 2021.
At the end of August, 468 residential units valued at N$501.0 million over the past year were approved, reflecting a 41.6% drop in number terms and a 41.9% drop in value compared to the same period a year ago.
19 residential units worth N$92.2 million were completed during the month.
In the commercial and industrial sector, four building plans valued at N$2.7 million were approved in August, bringing the year-to-date approvals to 36 worth N$218.7 million. This represents a 20.0% increase in the number of approvals and a significant 116.4% increase in monetary terms.
“It’s important to note that one of these approvals amounted to a substantial N$100 million plan approved in June. Four commercial and industrial plans valued at N$13.2 million were completed in August, contributing to the sector’s modest growth,” said IJG.
