Namibia’s construction sector still on mute
31 July 2021 | Economics
Land delivery was one of the challenges pointed out in the recently released First National Bank (FNB) residential property report.
According to the report, for the first quarter of 2021, overall growth in land sales has continued to disappoint on the downside, reaching an annual growth of 4.4% from 85.5% recorded a year earlier.
The worst performers in this regard were the central and southern regions, which registered contractions of 36.18% and 23.6% year-on-year, respectively.
On the upside, the coastal and northern regions showed growth in land sales of 11.9% and 1.1% year-on-year, respectively, the report pointed out.
According to the Namibia Statistics Agency (NSA), the composite index of building plans completed (Windhoek, Swakopmund, Walvis Bay and Ongwediva) recorded a declined monthly growth rate of 23.1% in May 2021 when compared to a reduced growth rate of 19.8% in April 2021.
Further, the index posted a declined growth of 11.9%, year-on-year.
The nominal value of the building plans completed during May 2021 amounted to N$111.8 million compared to N$ 145.4 million recorded in the previous month. The value of building plans completed for May 2020 stood at N$126.9 million.
The decline in nominal value of building plans completed observed for May 2021 were mainly attributed to the nominal valuations of construction activities for Windhoek, Walvis Bay and Ongwediva, respectively, NSA said.
In Windhoek, the building plans completed index registered a monthly declined growth of 26.1% in May 2021, worse-off than a decline growth of 0.6% recorded in the preceding month. The year-on-year performance showed a reduced growth rate of 33.5%.
The monthly decline was mainly reflected in the nominal value for additions and alterations of completed buildings, while the yearly decline was attributed mainly to building plans completed for pools.
The nominal value of building plans completed in Windhoek stood at N$70.6 million in May 2021 compared to N$95.6 million and N$106.1 million recorded for April 2021 and May 2020, respectively. Windhoek accounted for 63.2% of the total value of building plans completed in May 2021, NSA said.
In Walvis Bay, the building plans completed index declined monthly by 58.0% compared to the negative growth of 65.9% recorded in the preceding month. On annual basis, the index increased by 9.6% in May 2021.
The decline recorded month-on-month was mainly reflected in the nominal value of new residential units for completed buildings.
The nominal value of building plans completed in Walvis Bay for May 2021 amounted to N$10.3 million compared to N$24.5 million and N$9.4 million recorded for April 2021 and May 2020, respectively, NSA pointed out.
In Swakopmund, the building plans completed index registered a slow growth rate of 41.6% in May 2021 when compared to a growth rate of 73.0% recorded in the preceding month. On annual basis the index increased by 169% in May 2021.
The increase observed on annual and monthly basis was mainly reflected in the nominal value of the new and additions and alterations for residential units.
The nominal value of building plans completed in Swakopmund stood at N$30.7 million in May 2021 compared to N$ 21.7 million and N$ 11.4 million recorded for April 2021 and May 2020, respectively, NSA said.