WINDHOEK – The value of building plans approved during August is one of the largest figures on record, according to Simonis Storm Security, a local stock brokerage and research firm.
There were 176 building plans, excluding pools and walls, approved valued at N$201 million.
The increase in value was largely due two high-value constructions in the suburbs of Klein Windhoek and Dorado Park.
These two construction jobs carry a value of N$66.8 million.
On an annual basis the number of building plans approved decreased 23.1 percent, while the value of plans approved increased by 40.6 percent.
Of the 176 building plans approved, 138 were additions to the value of N$117.4 million compared to an average of 185 additions approved per month to the value of N$60.7 million on average for the year to date.
The number approved was 30 percent lower year on year, although the value approved increased 109.3 percent with the approval of a big plan in Kleine Kuppe.
The Katutura and Khomasdal areas had 43 additions.
Nine commercial building plans were approved compared to an average of seven plans a month for the year to date.
The value of the nine plans totalled N$58.1 million, in line with the year to date average and 13.4 percent up year on year.
In the Flats and Houses category 29 plans were approved, a year on year increase of 20.8 percent.
The value of plans approved, however, decreased 28.4 percent annually to N$25.5 million.
The bulk of the houses approved were in the Brakwater area, where 10 plans to the value of N$8.9 million were approved.
However, recent trends have suggested that the number of new approvals is only increasing slightly even though the country is experiencing low prime rates, reflecting diminishing marginal benefit.
This also indicates that further rates cuts would not increase the number of approvals by much, while unchanged interest rates or an increase will justify a decrease in the number of approvals.
Year to date, a total of 1 720 plans have been approved, which is 1.9 percent lower than the number approved over the same period in 2011.
The total value approved year to date however increased to N$1.3 billion, 21 percent higher than the same period last year.
The 12-month cumulative value approved increased 20.4 percent year on year to reach N$1.8 billion.