A total of 185 building plans to the value of N$167 million were approved by the City of Windhoek in June 2015. On a year to date basis 1,317 plans were approved with a value of N$1,104.8 million versus 1,361 plans valued at N$1,345.9 million for the same period last year. On a year to date basis the value of plans approved is down 17.9% although recovered during May. This year to date decrease in value of plans approved is mostly due base effects as three large commercial projects were approved by the municipality in February 2014. On a month to date basis the value of plans approved is down 54.3%. The large decrease in the value of total plans approved during the month is attributed to the value of additions to existing property approved during May. The below chart illustrates the elevated value of plans approved in May, with only two months during the last five years exhibiting a higher value of plans approved.
While the 12 months cumulative number of plans approved is still well down from peak levels, the 12 month cumulative value of plans approved has rebounded due to the strong values in May and June. The 12 month cumulative number of plans approved fell to 2,802 from 2,815 in May, while the 12 month cumulative value of plans approved decreased from N$2,078.5 million to N$2,057.2 million.
In our view the construction sector will remain one of the leading growth and development sectors for 2015 in the Namibian economy, with both private sector and government having aggressive development plans. However, many such plans fall out of the Windhoek municipal area, and as such are not captured in the monthly building plan statistics.