Approved building plans continue to decline
A total of 134 building plans were approved by the City of Windhoek in February, which is a decline in the number of plans approved on a monthly basis when compared to the 153 building plans approved in January.
In monetary terms, the approvals were valued at N$78 million, a significant decrease of N$191.3 million compared to last month. 214 Buildings with a value of N$60.1 million were completed during February.
The largest portion of building plan approvals was once again made up of additions to properties, from both a number and value perspective.
Furthermore, new residential units were the second largest contributor to building plans approved with 41 residential units approved year-to-date, four more than the corresponding period in 2017.
However, in monetary terms, N$56.3 million worth of residential plans were approved, 31.8% lower than the first two months of 2017.
The number of new commercial units approved so far in 2018 amounted to 9, valued at N$17.6 million.
IJG Securities stressed that on average over the last 20 years, 9.8 commercial units valued at N$52.2 million were approved in the first two months of the year, adding that this figure is not inflation adjusted.
“The recent announcement by Moody’s to keep South Africa’s credit rating at investment grade has provided the South African Reserve Bank with space to reduce interest rates. The South African Reserve Bank’s 28 March Monetary Policy Committee meeting saw the first rate cut of the year with the possibility of further cuts as the year progresses. This lower cost of debt will bring some relief to businesses and consumers alike,” IJG noted.