By Edgar Brandt
WINDHOEK – A number of innovative alternative construction methods have come to the fore following government’s implementation of its ambitious N$45 billion mass housing project.
The project will see the state construct 185 000 houses by 2030 to mitigate the current nationwide 100 000 housing units backlog.
However, most of the construction companies who tendered are facing an uphill battle when it comes to being approved for financing by the existing commercial banks, even though they offer a far lower construction cost per square metre compared to conventional building methods. They also offer significant savings in construction time.
According to the National Housing Enterprise, the average cost in using conventional construction methods works out to about N$6 500 per square metre. However, companies promoting alternative building methods say they can construct quality, durable and affordable housing for as low as N$3 500 per square metre.
A few weeks ago New Era posed questions to all commercial banks in the country on their acceptance and willingness to finance alternative building methods. However, only one bank responded. “Bank Windhoek considers applications for the financing of homes built with alternative building methods from time to time and in recent years some of these alternative methods have been approved by the bank,” said Chris Matthee, Executive Officer: Retail Banking Services at Bank Windhoek.
He added that each application is assessed on its own merit and the client’s ability to afford repayment of the loan is a key factor.
“Once an alternative building method has been approved, it means the bank will consider applications for financial assistance from clients desiring to purchase houses erected by using the applicable building method, subject to the bank’s normal credit criteria,” explained Matthee.
“When considering alternative building methods, various factors such as long-term durability of the property are considered, while we believe that there should also be a substantial monetary saving for the buyer when compared to conventional building methods.”
Meanwhile, companies like The Living Properties, which have secured the rights to an alternative product that produces houses that look no different from conventional houses, emphasized they obtained approval for their product from municipalities, commercial banks (Standard Bank South Africa and ABSA), the South African Bureau of Standards (SABS) and the National Home Builders Registration Council (NHBRC) within the South African market.
“Our construction method also received an ‘Agrement Certificate’ for innovative construction products and systems from the South African Agrement Board,” explained the founder of The Living Properties, Freddy Taylor.
The Kavango Block Brick company (KBB) is another alternative housing company that has been developed with the idea of reducing the cost of construction. The KBB building system was designed to meet Southern African climatic conditions, with significant cost savings due to the speed of construction.
The Duracasa Building System construction method also saves on cost and time.
“This technique of ours used to build houses produces reliable housing at a relatively low cost in less than half the time. Our way of construction ensures that the end product looks no different to a conventional brick house but has the cost and time advantages that come with the Duracasa Building System,” remarked Taylor.
Although Bank Windhoek’s Matthee said his institution has not introduced any new products and services for the mass housing project, he stressed: “Bank Windhoek welcomes all responsible efforts to alleviate the housing challenge in our country and will as far as possible endeavour to be part of the solution by providing financial assistance to home owners, within the parameters of responsible lending and subject to our normal credit criteria.”
He said Bank Windhoek introduced favourable terms and conditions for home loans for first-time buyers during the last quarter of 2013 to make it easier for them to own their first home.
“Nevertheless, the most important determining factor when considering a new home loan application should always be the ability of the client to repay the loan, also taking into account potential interest rate increases,” said Matthee.