City of Windhoek approves 235 building plans in November
The City of Windhoek approved 235 building plans in November, which represents a 46.9% increase from the 160 building plans approved in October.
In value terms approvals increased by more than N$80 million to N$172 million in October from N$88.46 million approved in September, while total completions fell from the 88 recorded in October to 67 for November.
Furthermore, additions to properties made up 197 approvals out of the total 235 approved plans recorded in November.
“Additions to properties exceeded new developments by more than four times. While private sector credit continuously slowed since the start of 2017, currently at 5.2% in October. Total mortgage loans extended to the private sector grew at an average of 8.2% during 2017,” IJG Securities said.
The firm added that that this is slower than the growth in mortgage loans of 11.7% recorded in 2016.
“Consumers and businesses will now look to 2018 in hopes of some relief, however recent downgrades and the potential of further downgrades in South Africa point to greater possibilities of a rate hiking cycle, which would put further pressure on consumers and will further delay a much needed economic recovery,” IJG added.
With 2017 drawing to a close, year-to-date total approvals, in value terms, have surpassed the N$1.97 billion approvals registered in 2016 with N$119 million. By that account 2017 has, albeit marginally, been a better year than 2016 for commercial and residential real estate.
“We observed a continuous slowdown in private sector credit extension coupled with indebted households and Corporates. Real GDP, consumption, employment and housing prices initially reacts positively to increases in household debt. However, Currently, we observed a slow growth in household debt which we believe will hamper growth in house prices as well construction of many buildings over the medium term,” Simonis Storms Securities said.