Construction and Property Corner ::: 17 August 2023

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Construction and Property  Corner ::: 17 August 2023 

 


 

 

	
 


 

 


 

ü  Willdale records 26pc jump in sales volumes

ü  Hwange units 7 and 8 a milestone for energy-starved SADC region   

ü  Warranties, declarations in property sales

ü  Total Construction Starts Show Double Digit Gains in July

ü  Integrating Artificial Intelligence Into Construction Projects

ü  Construction company abandons Atlantic Avenue widening project in Raleigh

ü  New residential construction on Longboat increases in quantity, value

ü  Construction minister announces package of measures to revive building
sector

ü  Indonesia to allocate $2.7 bln next year to construction of new capital

ü  Phoenix building restrictions squeeze construction firms and agents

 


 

 


 <https://www.willdale.co.zw/> Willdale records 26pc jump in sales volumes

Zimbabwe Stock Exchange (ZSE) listed brick-making firm Willdale Limited says
sales volumes for the quarter to June 30, 2023 increased by 26 percent over
the same period last year, thanks to increased construction activity during
the period.

 

During the quarter, the construction industry picked up from the rainy
season shutdown period, resultantly pushing volumes higher.

 

Housing development for both cluster homes and individual units is expected
to continue to push sales, with significant contributions expected to come
from improvements in educational facilities.

 

Year-to-date volumes for the nine months were, however, for percent below
the prior year and still reeling from the effects of low production
experienced earlier in the year due to electricity shortages that have
persisted since 2022.

 

The brick-making firm indicated sales volumes for the half year to March 31,
2023 went down 16 percent on the back of low stock availability resulting
from electricity shortages that impacted production, while demand remained
strong.

 

Electricity supplies however later improved in the quarter boosting
efficiencies and production levels.

 

For the quarter under review, the operating environment remained challenging
for businesses and Willdale was not spared.

 

“The instability in the exchange and inflation rates presented a challenging
operating environment characterised by low aggregate demand and high
operating costs,” said company secretary Mavuto Munginga in a trading update
for the period under review.

 

Despite the challenging environment, Willdale maintained a significant order
book built to drive sales for the remainder of the year.

 

“The company continues to pursue various opportunities requiring bricks in
various sectors,” said Mr Munginga.

 

In terms of financial performance, year-to-date revenue grew by 83 percent
to $20 billion in inflation-adjusted terms and by 704 percent to $10 billion
in historical terms compared to the prior year. Revenue continued to be
impacted by exchange rate distortions.

 

According to Mr Munginga, the continued growth in demand for higher-margin
brick types has helped to improve the product mix and margins.

 

Focus remains on efficient production and cost containment given the
prevailing economic environment. While the operating environment remains
challenging for businesses, Willdale is upbeat about performance as monetary
authorities try their best to stabilise the economy. Short-term business
plans will continue to be reviewed to remain viable. Mr Munginga said
appropriate strategies will be deployed to generate sufficient business
given the low aggregate demand.

 

“Statutory Instrument 134A of 2023 was issued on 25 July 2023 significantly
resolving the impasse with Zimra on the issue of Value Added Tax on bricks.
Clay bricks were classified as exempt from VAT with effect from 01 August
2022.

 

“This classification, however, implies that the VAT portion on purchases
will no longer be claimable as input tax and will therefore increase costs
of operations.

 

“This unfortunately will also increase the cost of construction,” said Mr
Munginga.

 

He added the company will continue to leverage its brand, superior quality,
and capacity to dominate the market and sustain margins, subject to a
sufficient supply of electricity.-herald

 

 

 

Hwange units 7 and 8 a milestone for energy-starved SADC region   

THOKOZANI Simelane and Shingirai Mutanga, in a research paper titled:
“Electricity Generation: A Driver of Sadc Regional Integration” postulate
that the quest for industrial economic transformation and boosting
international partnerships in Southern Africa will remain a pipe dream if
not backed by a solid power supply strategy. 

 

The scholars, in particular, advocate for strengthening of the regional
integrated energy development models to enhance effectiveness and efficiency
in resource utilisation.

 

In August 2014, Zimbabwe hosted the 34th SADC Heads of States and Government
Summit where the region strongly endorsed the adoption and mainstreaming of
industrialisation as critical pillar towards strengthening economic
integration.

 

 

This was in realisation of the fact that greater regional co-operation could
be the means towards diversifying the region’s economy, as well as boosting
international partnerships. 

 

At the heart of this drive has been the need to equally boost access to
energy, which remains a challenge for most SADC countries and yet
industrialisation demands adequate energy supply. 

 

 

It is in this context that the recent successful commissioning of the 600MW
Hwange Units 7 and 8 Expansion Project by President Mnangagwa in Zimbabwe, a
member of the Southern African Power Pool (SAPP), must be rightfully
perceived as a huge milestone for the entire SADC region.

 

 

By adding 600MW of electricity to the national grid, the Hwange Expansion
project has helped close the gap in the country’s power suppl. This not only
eases the import burden from the region but also creates room for the
channelling of excess supplies from major producers to energy starved member
states. 

 

As Heads of State and Government meet in Luanda, Angola for the 43rd SADC
Summit this week, the region is expected to take stock of the progress
towards the achievement of the outcomes articulated in the Regional
Indicative Strategic Development Plan (RISDP:2020-2030), of which energy
development is a key component and one of the major enablers.

 

President Mnangagwa will attend the Summit today to represent Zimbabwe under
the Second Republic, which is now energy sufficient having scored major
successes in energy generation and supply.

 

The country is already feeling the positive impact of the US$1.5 billion
Hwange Expansion Project, which has renewed business investment confidence
and is a huge boost towards the realisation of National Development Strategy
1 (NDS1) and Vision 2030 targets.

 

 

President Mnangagwa officially commissioned Hwange Unit 7 and 8 recently

 

However, Zimbabwe is not sitting back to relax but is forging ahead with
exploring other projects to further beef up power generation in tandem with
the growing needs of the expanding economy. This includes tapping into power
exports and helping the region achieve energy sufficiency, said President
Mnangagwa while noting the need to satisfy the bigger energy demand for the
whole of SADC.

 

“As Sadc there is a deficit of nearly 6 000 to 7,000MW and whichever country
can produce excess power there is a market.

 

 

“So, we as the Second Republic, we will leapfrog to satisfy that deficit,”
he told journalists soon after touring the new Hwange units.

 

“Energy is a critical enabler for our industrialisation and modernisation.”

 

Zimbabwe Power Company (ZPC) acting managing director, Engineer Nobert
Mataruse, has said the positive impact of the Hwange 7 and 8 project were
spread across the country at large, the region and internationally. 

 

“We had contractors coming as far as from China, some from Europe who had
work they were doing here in Hwange project to be a success,” he said in a
recent interview.

 

The country is now able to meet its power demand of about 1 900MW and
because of improved domestic output the power utility has since suspended
load shedding, said Eng Mataruse.

 

The journey towards energy sufficiency began in 2018 when President
Mnangagwa visited China and met his counterpart, President Xi Jinping during
which they discussed a number of projects. 

 

>From that engagement, President Mnangagwa successfully secured the US$998
million loan from China to finance the Hwange 7 and 8 Expansion Project
whose completion has fulfilled one of the promises made by the President on
improving the power supply situation in the country.

 

 

Hwange Unit 7 and 8 that were officially commissioned by the President
recently. – (Picture by Office of the President and Cabinet)

 

According to the power utility, ZESA, the project involved developing the
power plant, which entailed the installation of two electricity generating
units, each having a net output of 300MW. 

 

 

It also covers the construction of two new 400kV substations (330kV Sherwood
B and 400/330 kV Hwange B Substation) a 400kV 310 km transmission line from
Hwange to Insukamini in Bulawayo and another 40 km long transmission line
from Insukamini to Marvel in Bulawayo for the evacuation of power. 

 

This effectively leaves the Hwange Thermal Power station complex (Units 1-8)
with an installed generation capacity of 1520 MW.

 

Tendering for the Hwange Expansion Project was initially done in 2011 and
the tender was awarded to Power China’s subsidiary, Sinohydro Corporation
Limited, by the then State Procurement Board in May 2013 to carry out the
EPC Works. 

 

A special purpose vehicle, HESCO, was set up for the governance of the
project. HESCO is a joint venture between Zimbabwe Power Company (ZPC) and
Sinohydro Corporation Limited ZPC controls 64 percent while Sinohydro has 36
percent shareholding. 

 

Since June 2018 when President Mnangagwa led the groundbreaking ceremony in
Hwange, the project implementation kicked off and several milestones were
recorded as the Government and the contractor sought to meet the set
deadlines. From preliminary excavation works, geotechnical assessments,
boiler systems establishment, raw water treatment up to the first successful
synchronisation of Unit 7 on 20 March this year, followed by Unit 8 in May,
the Chinese and local engineers did a sterling job.

 

The power plant project was done simultaneously with the transmission and
distribution infrastructure, which sought to integrate Units 7 and 8 into
the existing transmission infrastructure (national grid). The construction
of the 310km 400KV transmission line (Hwange – Insukamini) commenced in
December 2019 with the completion of the switching station foundation and
support equipment in May last year.

 

 

Story continues on www.chronicle.co.zw

 

This was followed by the construction of the 400kV Transmission Line from
Hwange B Substation to Insukamini Substation, which was completed in July
2022 followed by completion of the switching station and Hwange B primary
and secondary equipment installation in November.

 

Among other benefits, a total of 74houses were built by ZPC as part of its
Relocation Action Plan (RAP) for affected persons who were impacted by the
construction of the new Transmission and Distribution Line.

 

Several water outlets were also placed along the Deka Upgradation Project
pipeline as part of ZPC’s Corporate Social Investment as a way to give back
to the Deka community. The Hwange Expansion Project and the project were
carried out simultaneously.

 

 

Hwange Power Station

 

In order to make sure that no one and no place is left behind, there was a
purposeful local empowerment plan (Hwange – both rural and urban areas)
where the locals were given first priority and employed for these projects. 

 

“The employment prospects extended to the entire population of Zimbabwe. The
project provided employment benefits to more than 4000 Zimbabwean people,”
said the power utility.

 

 

The Zimbabwe Power Company has said while the project has been completed,
the utility can continue using the employer offices that were built as a
result of the project.

 

Sinohydro, the contractor, has further donated 500 chairs and 500 desks to
Neshaya Secondary School, which has helped the pupils by providing an
enhanced furniture base, which gives them a more respectable and organised
learning environment.

 

The contractor also provided the COVID-19 Center with COVID-19 Personal
Protective wear in addition to donating US$30,000 to the Five Mile Hospital,
an isolation facility for infectious diseases. The COVID-19 Center and the
Five Mile Hospital were able to fully render their services to the local
community through these donations.

 

Young engineers were hired to work on the Hwange Expansion Project,
realising local empowerment through the technological know-how that
Sinohydro imparted to the people of Zimbabwe.

 

The delivery of local products, such as cement, bricks, pit sand, and other
supplies for the project’s development, which is worth more than US$117
million or 10 percent of the contract, helped in uplifting the local
business community and in turn creating jobs.-chronicle

 

 

Warranties, declarations in property sales

On June 29, 2023, I wrote an article titled “Safeguards in agreements or
contracts”.

 

I explained that some of the important safeguards include the following:

 

Correct details of the parties.

 

Preamble to give background or context to the agreement.

 

Definitions and interpretation.

 

Confirmation of legal capacity to act.

 

Currency of the agreement.

 

Declarations and warranties.

 

Defects and voet stoots.

 

Breach.

 

Termination.

 

Applicable laws.

 

Warranties in agreements of sale for immovable properties

 

I have been asked to write specifically on the important warranties or
declarations for agreements of sale for immovable properties. Immovable
properties in this case being land only or land and improvements thereon
such as buildings.

 

Some of the key warranties and declarations I would recommend include the
following:

 

Where an organisation such as a company or trust is involved as a seller or
purchaser, all internal procedures such as approvals through resolutions
have been complied with.

 

That the seller is the beneficial or registered owner of the property.

 

The seller has the original deed of transfer (“title deed”), which shall be
handed over to the appointed conveyancer upon signing of the agreement or
such

 

other time as may be stipulated in the agreement.

 

Where the original title deed could not be found and was replaced, a copy
certified by the Registrar of Deeds is in fact being used in lieu of the
original.

 

There are no pending legal disputes or litigation concerning the property,
which may constrain or frustrate the sale or transfer of the property.

 

Such disputes may concern ownership of the property, divorce proceedings,
etc.

 

There are no valid preceding agreements of sale for the same property. This
assists to avoid disputes where the seller has another valid agreement of
sale, which has not been cancelled.

 

That until the transfer is registered the seller irrevocably undertakes not
to encumber or mortgage the property.

 

The seller has made full disclosure to the purchaser and acknowledges that
the purchaser has acted on the basis of the representations by the seller.
This helps the purchaser in the event of incomplete disclosure or fraudulent
misrepresentation by the seller.

 

That the purchaser has adequate financial resources to pay for the immovable
property or has made adequate arrangements for funds to pay for the property
and has disclosed such arrangements to the seller. This may be useful where
there is a breach in payment by the purchaser.

 

The purchaser has carried out their own due diligence on the property
including physical verification or examination of the property, its
condition, deed search, condition of title and has requested or received
representations from the seller.

 

The purchaser declares that he or she is purchasing the property voetstoots,
that is, as it stands.

 

That both parties had the opportunity to seek legal assistance before
signing the agreement of sale.

 

Importance of warranties or declarations

 

These are safeguards to cover the period before signing of the agreement of
sale or thereafter. For example, a seller may hesitate to sign where for
example there is another valid preceding agreement of sale which he or she
is in the process of cancelling. The purchaser may also be forced to make
full disclosure or desist from possible fraudulent misrepresentation.

 

Warranties may also work as a checklist for reducing risk and making the
transaction safe, especially for the purchaser. Post-signing of the
agreement of sale, the warranties or declarations can be useful in the event
of disputes.

 

Conclusion

 

At the time of signing the agreement of sale, the purchaser is usually
anxious to sign the agreement, pay and obtain a transfer. This is expected.
However, the legal practitioner assisting the parties ought to include
safeguards in the form of warranties or declarations by the seller and the
purchaser.

 

Disclaimer

 

This simplified article is for general information purposes only and does
not constitute the writer’s professional advice.

 

Godknows (GK) Hofisi, LLB(UNISA), B.Acc(UZ), Hons B.Compt (UNISA), CA(Z),
MBA(EBS, Heriot- Watt, UK) is the Managing Partner of Hofisi & Partners
Commercial Attorneys, chartered accountant, insolvency practitioner,
registered tax accountant and advises on deal and transactions./ He has
extensive experience from industry and commerce and is a former World Bank
staffer in the Resource Management Unit. He writes in his personal
capacity./He can be contacted on +263 772 246 900 or
gohofisi at gmail.com-herald

 

 

Total Construction Starts Show Double Digit Gains in July

Total construction starts rose 17% in July to a seasonally adjusted annual
rate of $1.2 trillion, according to Dodge Construction Network. Nonbuilding
starts drove the increase, rising 38%, due to the start of a singular large
LNG facility. Residential starts rose 20%, while nonresidential building
starts lost 6%.

 

Year-to-date through July 2023, total construction starts were 7% below that
of 2022. Residential and nonresidential starts were down 21% and 7%
respectively; however, nonbuilding starts were up 20% on a year-to-date
basis. For the 12 months ending July 2023, total construction starts were 3%
higher than that of 2022. Nonbuilding starts were 21% higher, and
nonresidential building starts gained 16%. Conversely, on a 12-month rolling
basis, residential starts posted a 17% decline overall.

 

“Construction starts have plateaued and are making little headway,” said
Richard Branch, chief economist for Dodge Construction Network. “Higher
interest rates, labor shortages and material prices continue to impact the
flow of construction starts — resulting in little forward momentum over the
last 12 months. The lag in nonresidential building projects entering the
planning stage will slow starts as the year progresses, which should be
offset by rising infrastructure activity.”

 

Nonbuilding

 

Nonbuilding construction starts surged in July, climbing 38% to a seasonally
adjusted annual rate of $440 billion, due mostly to the start of a large LNG
facility. Without the mentioned facility included, total nonbuilding starts
would have dropped 7%. Environmental public works also rose dramatically,
increasing 62% due to the start of a large dock facility. Highway and bridge
starts lost 4% in the month. Miscellaneous nonbuilding starts fell 71%
following the start of the Buffalo Bills’ new stadium in June. Year-to-date
through July, nonbuilding starts gained 20%. Utility/gas plants rose 23%,
and miscellaneous nonbuilding starts were up 37%. Highway and bridge starts
gained 14%, along with environmental public works rising 19%.

 

For the 12 months ending July 2023, total nonbuilding starts were 21% higher
than the 12 months ending July 2022. Utility/gas plant and miscellaneous
nonbuilding starts rose 9% and 32%, respectively. Highway and bridge starts
were up 22%, and environmental public works rose 25% on a 12-month rolling
sum basis.

 

The largest nonbuilding projects to break ground in July were the $12
billion first phase of the Rio Grande LNG facility in Brownsville, Texas, a
$2.8 billion concrete dock at the Pearl Harbor Naval Shipyard in Hawaii, and
the $813 million first phase of the Bellefield Solar farm and battery
facility in California City, California .

 

Nonresidential

 

Nonresidential building starts fell 6% in July to a seasonally adjusted
annual rate of $334 billion. Commercial starts rose 11% on the back of gains
in warehouse and parking starts, offsetting a decline in office and hotel
starts. Institutional starts were down 11%, with education, dormitories, and
religious the only categories to show an increase. Manufacturing starts
dropped 39% in July. On a year-to-date basis through July, total
nonresidential starts were 7% lower than that of 2022. Institutional starts
gained 8%, while manufacturing and commercial starts fell 9% and 31%,
respectively.

 

For the 12 months ending July 2023, total nonresidential building starts
were 16% higher than that ending July 2022. Manufacturing starts were 24%
higher. Institutional starts improved 20%, and commercial starts gained 8%.

 

The largest nonresidential building projects to break ground in July were
the $405 million Envision AESC BMW components manufacturing plant in
Florence, South Carolina, the $370 million Wisteria at Warner Center office
building in Los Angeles, California, and the $277 million first phase of an
airside concourse at Orlando International Airport in Florida.

 

Residential

 

Residential building starts rose 20% in July to a seasonally adjusted annual
rate of $414 billion. Single family starts gained 2%, while multifamily
starts shot 62% higher. On a year-to-date basis through July 2023, total
residential starts were down 21%. Single family starts were 25% lower, and
multifamily starts were down 14%.

 

For the 12 months ending in July 2023, residential starts were 17% lower
than in 2022. Single family starts were 25% lower, while multifamily starts
were down only 0.1% on a rolling 12-month basis.

 

The largest multifamily structures to break ground in July were the $1
billion Clarkson Square condo and apartment building in New York City, the
$365 million Queensbridge Collective residential tower in Charlotte, North
Carolina, and the $358 million Oasis Hallandale tower in Hallandale Beach,
Florida.

 

Regionally, total construction starts in July rose in the South Atlantic,
South Central, and West regions but fell in the Northeast and Midwest.

 

 

Integrating Artificial Intelligence Into Construction Projects

Artificial intelligence could bring huge benefits to the construction
industry, but it may be one of the last to fully embrace it.

 

The artificial intelligence revolution is expected to have an effect on
every industry, with some already seeing the benefits of this technology
while others are only starting to dip their toes into the possibilities. 

 

In construction, artificial intelligence is still in the realm of toe
dipping for almost all firms. While there are many use cases being brought
to the table, and some leading-edge construction and architecture firms are
utilizing AI in interesting ways, it is still not as advanced as it is in
the technology, finance, and medicine industries. 

 

SEE ALSO: Using Geospatial Analytics to Optimize New Telecom Services

 

Construction firms are bullish about the use of AI in the future, with 92
percent of construction companies surveyed in the Peak’s Decision
Intelligence Maturity Index stating they have or intend to use AI in their
workflows. However, only 65 percent of construction companies AI projects
have been successful thus far, one of the lowest percentage values of all
industries surveyed. 

 

“Artificial intelligence will transform our industry in the next 10 years
more than any other technology in the past 100 years,” said James Barrett,
chief innovation officer for Turner Construction, to Construction Dive.
“It’s going to be huge because it has such broad application in so many
cases. It’s not a question of if. It’s a question of when.”

 

One of the issues is the culture in most construction firms isn’t
data-driven, and can be quite adverse to technological advancement.
According to the Oracle Industry Lab, most of the industry’s data lives in
silos, there isn’t a lot of historical data available, and firms are
hesitant to share data with third-parties, such as analytics platforms. 

 

The culture is changing, albeit slowly, with some of the top firms
recognizing the immense value AI could have on the construction industry in
the next five years. The discovery stage, which many firms are currently
going through, will be critical to the development of applications and
systems that may be in use by construction firms for the next decade.

 

With AI, construction firms could see the time spent going through building
codes, permits, and other health and safety regulations reduced
significantly, by allowing an artificial intelligence to sift through
thousands of documents and identify relevant codes and permits. 

 

AI can also be used as a sort of virtual project manager, able to define
more clearly the different stages of the project and break each stage down
into sub-stages to keep managers and workers in check. To optimize this,
construction firms should upload all data on previous projects, with worker
sign-offs and other relevant material to indicate how a project progresses. 

 

Through the use of CCTV and on-site cameras, AI can also improve safety by
detecting hazards and issuing warnings to workers not wearing protective
gear. With AI, construction firms can also run tests in simulation to better
understand the risks, before starting the project in real life. 

 

 

Construction company abandons Atlantic Avenue widening project in Raleigh

Construction is at a standstill to widen Atlantic Avenue and make the busy
road through midtown Raleigh safer for people to get around.

 

A city staff memo to the Raleigh City Council said the Goldsboro-based
contractor, J-Smith Civil, abandoned the project, “performing minimal work
since January.”

 

“It’s an eyesore,” said Hope Moore, who regularly drives through Atlantic
Avenue to visit her son.

 

Moore’s son lives in a home that has had construction fencing cutting
through the front yard for the last year and a half.

 

WRAL News asked Moore if she noticed that the construction company wasn’t
making progress near her son’s home.

 

“Oh, yeah. I’ve been noticing that all summer,” Moore said. “I thought maybe
they’re doing it in the evening when it’s cooler, but we haven’t seen
anything in quite a while.”

 

The work should be about three-quarters of the way done, and it’s only 20%
complete.

 

2-year construction project to begin on Atlantic Avenue in March

On Tuesday, WRAL News reached out to J-Smith Civil President Jeremy Smith
several times but did not hear back.

 

The city’s memo said there is justification for terminating the contract
with J-Smith Civil for its "failure to maintain adequate manpower and to
adhere to the Project progress schedule.”

 

The city declined WRAL News’ request for an interview on Tuesday.

 

Instead, the city provided a statement on the Atlantic Avenue project
website. It states:

 

“The City is deeply concerned about the lack of progress on the Atlantic
Avenue widening project and has expressed its concerns to the general
contractor, J-Smith Civil, and the contractor’s bonding company, Westfield,”
the statement reads. “The City is currently in discussions with the
contractor and the bonding company to determine how and when the project
will be completed.

 

“While a revised timetable for completing the project has yet to be
established, City officials are working diligently to arrange for completion
of the work as soon as possible. As the City continues its discussions with
J-Smith Civil and Westfield, it will continue to monitor site conditions to
ensure the corridor is safe for everyone, including drivers, cyclists,
pedestrians and nearby landowners.”

 

 

Atlantic Avenue to undergo 2-year widening project in Raleigh

WRAL News asked Moore if she thinks the city should have done something
sooner.

 

“The city should have known what was going on the whole time,” Moore said.

 

The North Carolina Department of Transportation said J-Smith Civil has three
contracts for road projects with the state. It includes the widening of
North William Street in Goldsboro. A state spokesperson said the company
stopped working on all those projects as well.

 

 

 

 

New residential construction on Longboat increases in quantity, value 

Demand for luxury living on Longboat Key has been on an upward trend the
last six years, according to new construction permit data. 

 

“We have a lot of new houses, so there’s definitely an upswing in that
because we’re reviewing the plans,” Longboat Key Building Official Patti
Fige said. 

 

In 2017, the Planning, Zoning & Building Department issued five new
residential construction permits. A couple years later in 2022, that number
jumped to 32. To date in 2023, there have been 17 new construction permits
issued. 

 

The median value of new residential construction has also steadily
increased, from $475,000 in 2017 to $1,679,420 in 2023 to date. 

 

According to Fige, houses the department has reviewed seem to be growing
larger in recent years. The average square footage is now around 6,000 to
7,000, though this year Fige said there are some that have far exceeded
that. 

 

“We’ve permitted two, if not more, that are 22,000 square feet or more,”
Fige said. “And I don't know that I’ve had that before.” 

 

Fige also said she’s seen quite a few alterations to existing structures in
which many residents are completely renovating condos. Other, more minor,
alterations such as wind pressure and impact resistant windows and doors
have also trended upwards, according to Fige. 

 

 

 

 

Construction minister announces package of measures to revive building
sector

BERLIN (dpa-AFX) - Federal Construction Minister Klara Geywitz has announced
a package of measures to boost the struggling housing construction sector.
The SPD politician said in Berlin on Wednesday after the cabinet meeting:
"We have agreed with the Ministry of Finance that we are working on a
package of measures, which will include tax incentives." This is now being
worked out accordingly, he added.

 

In the cabinet, a growth opportunity law planned by Federal Finance Minister
Christian Lindner (FDP) to ease the burden on the economy was not introduced
after all. In response, the construction minister said that Chancellor Olaf
Scholz (SPD) had said that the federal government would address economic
growth at the cabinet retreat in Meseberg at the end of August. "That's very
good news, because of course we also see the need in the Construction
Ministry for us to provide additional fiscal stimulus also to revive the
construction industry."

 

Germany is in an economic slump. Residential construction, which had been
booming for years, has stalled due to the sharp rise in interest rates on
loans and more expensive materials. This is weighing on the construction
industry, which was a pillar of the economy during the real estate boom.
Geywitz had only recently announced that she wanted to significantly expand
tax depreciation options for new buildings.

 

 

 

 

Indonesia to allocate $2.7 bln next year to construction of new capital

(Reuters) - Indonesia is to allocate 40.6 trillion rupiah ($2.7 billion) to
the construction of its new capital city in its 2024 budget and the
presidential office and a dozen apartment blocks for workers should be
completed next year, ministers said on Wednesday.

 

The Southeast Asian nation announced in 2019 that it would build a new
capital, Nusantara, on Borneo island, replacing an overcrowded and sinking
Jakarta. The new city is expected to cost a total of $32 billion by the time
it is completed in 2045.

 

The government has already invested 32 trillion rupiah to build basic
infrastructure, including a dam and a toll road.

 

Finance Minister Sri Mulyani Indrawati said 35 trillion rupiah from the 2024
budget would be given to the public works and housing ministry, who will
build infrastructure and housing for civil servants.

 

"Supporting infrastructure will be finished in 2024," Sri Mulyani said at a
news conference.

 

The government will in September start building housing for about 16,000
civil servants, military and police officers, who are due to move in next
year, said public works and housing minister Basuki Hadimuljono.

 

The government plans to complete 12 of 47 apartment blocks by July next
year, a month before the government will hold its first independence day
flag ceremony in the new capital, Basuki said.

 

"Four coordinating ministry's offices, the presidential palace will be
complete next year, while the field for flag-raising ceremony next year will
be complete in July," he said.

 

($1 = 15,285.0000 rupiah)

 

The Thomson Reuters Trust Principles.

 

 

 

 

Phoenix building restrictions squeeze construction firms and agents

A ban on residential building permits in parts of the Phoenix area is
angering builders and agents, who feel it may curb the supply of affordable
housing.

 

“Our main concern on the implication of the model that was released is
housing affordability,” Spencer Kamps, the vice president of legislative
affairs at the Home Builders Association of Central Arizona (HBACA), which
serves homebuilders in Maricopa County, said. “Effectively, what we have
created is growth boundaries.” 

 

In early June, the Arizona Department of Water Resources (ADWR) announced
that it was denying any new certificates of Assured Water Supply (AWS) in
the Phoenix Active Management Area (AMA), which encompasses all of Maricopa
County and parts of Pinal County, for a total of 5,646 square miles and home
to 4.6 million residents. In certain parts of the Phoenix AMA that do not
have a designated water provider, builders and developers need a certificate
of AWS to obtain a building permit. 

 

Arizona sees the ban as a precautionary measure to curb the effects of
climate change, as it will limit the number of new residential properties
built in the area. 

 

Maricopa County, which encompasses the cities of Phoenix and Scottsdale,
uses 2.2 billion gallons of water per day and receives less than 11 inches
of rain per year. More than half of the county’s water supply comes from
groundwater. Much of the rest of the county’s water supply comes from the
Colorado River, which is in the midst of a decade-long drought. More than
30% of the water used in Maricopa County each day — roughly 640 million
gallons — is used for domestic purposes.

 

Rapid population growth is adding pressure on groundwater resources in the
state. No metropolitan area in the country welcomed more new residents than
Phoenix last year, at 76,000. 

 

The moratorium on residential permits was made after an analysis conducted
in the first half of the year by the ADWR showed that over the next 100
years, 4%, or 4.86 million acre-feet of water of Phoenix AMA’s groundwater
demand, would not be met.

 

“By proactively addressing opportunities for enhancing groundwater
availability, we are demonstrating our dedication to long-term
sustainability and securing Arizona’s water future,” Chris Camacho,
president and CEO of the Greater Phoenix Economic Council, said in a
statement.  

 

Arizona has long taken protective actions in the interest of water
conservation. The state’s AMAs were put in place in 1980 via the Arizona
Groundwater Management Act. The primary goal of the legislation and the AMAs
was to ensure homeowners’ water needs were  being met, by forcing builders
and developers to obtain permission from the state before drilling for
water. 

 

Greg Vogel, the founder and CEO of Land Advisors, a Scottsdale-based land
brokerage, had some stronger words about the analysis and the building
ordinance.

 

“The original purpose of the Groundwater Management Act was really consumer
protection,” Vogel said. “It needs updating and the analysis they did, I
think is woefully inaccurate related to its accounting of the supply of
groundwater. The analysis showed the entire region was 4% short over 100
years — no other state has anything like this ridiculous requirement.”

 

Questioning the rationale for the building restrictions, the HBACA said that
Arizona was the only state that requires homebuilders to ensure a 100-year
water supply in order to build.

 

Other states in the arid southwest impacted by drought, such as New Mexico,
California and Colorado, have water supply requirements of 40 years, 25
years and 20 years, respectively.

 

The HBACA claims that the homebuilding industry is the only industry in the
state required to meet 100 years of demand for ground water use.

 

Due to the restrictions these regulations have created, Kamps said the HBACA
is concerned about the area’s housing supply and housing affordability
moving forward.  

 

Under the new regulations, construction of new residential buildings can
continue in areas that have a designated water provider since homebuilders
and developers do not need an AWS certificate to obtain a building permit.
The areas that are most impacted by this building ordinance are the town of
Queen Creek, the city of Buckeye and other unincorporated areas of Maricopa
County, Kamps said.

 

However, there is somewhat of a silver lining. There are 80,000 undeveloped
lots that have certificates of AWS that the state has said can be developed
as planned, which would help mitigate some of the county’s housing supply
issues.

 

“We still have the potential for growth into those 80,000 units,” Kamps
said.

 

“Within those designated providers there are limited opportunities to grow
homes and therefore we think, potentially, over the long run the impact on
affordability could be significant.”

 

Kamps added that he anticipates the prices of the 80,000 lots that already
have AWS will also increase if developers chose to sell them, since there
currently is a finite supply.

 

Phoenix, said Vogel, was already dealing with low housing inventory and
increasing affordability issues.

 

On August 4, 2023, 5,259 single family homes were for sale in Maricopa
County, down from 11,890 homes on August 9, 2019, according to data from
Altos Research. During the same period, the median list price for a home in
Maricopa County rose from $399,000 to $640,000, and the current Market
Action Index score for the county is 51 — Altos considers anything above 30
to be a seller’s market.

 

“We have a deep shortage of housing,” Vogel said. “The AMA studies they’ve
issues and the restrictions they have put in place do not help, but you can
build commercial property and multifamily rental properties so long as it is
not a subdivision in undesignated areas, for the moment, but there are bills
being proposed to short-circuit that.”

 

While the building ordinance will certainly impact housing inventory, Elise
Fay, a local eXp Realty agent, feels that, at least in the short term it
won’t have a major impact on home prices.

 

“The homes they are looking to build in the restricted areas are on the
outskirts of the city, so I just don’t see it having a big impact on housing
prices,” Fay said. “The homes out there do tend to be more affordable
though, so that is probably going to hurt some first time home buyers.”

 

Despite rising home costs and dwindling inventory, some local real estate
agents who spoke with HousingWire said they weren’t overly concerned about
the building ordinance.  

 

“No one is really talking about it,” Robert Shaw, the Arizona regional vice
president of Hunt Real Estate ERA, said. “Since this is about building
permits it will be years before it impacts the resale home market, which is
the majority of homes agents deal with, so it hasn’t really been a big topic
of discussion.”

 

Fay, a native New Yorker, to whom water shortages were a foreign concept
before moving west, said she felt the building ordinance was a sign of the
state’s commitment to the stewardship of water resources over the long term.

 

“Arizona has been innovative in their water management and [when] you
realize that they have a 100-year water supply requirement for groundwater,
you feel better,” she said.

 

Although the issuance of new building permits may be on hold for now and the
excessive heat and drought situation in Phoenix, which has seen over a month
straight of at least 110-degree weather, does not appear to be improving,
the HBACA remains optimistic about the future of residential building in the
metro area.

 

“When the governor announced it, she called it a pause and we were pleased
to hear that because that told us that it wasn’t a permanent policy of the
state,” Kamps said. He also noted that the governor has created a water
council that is currently working on recommendations on how to fix the
groundwater issues, which it will present to the governor in early 2024.”

 

 

 

 

 

 

 

 

 

 

 


 


 


Invest Wisely!

Bulls n Bears 

 

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INVESTORS DIARY 2023

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


Padenga

EGM

Royal Harare Golf Club

August 16 – (10am)

 


Border Timbers

EGM

4 – 12 Paisley Road, Southerton, Harare, or virtually
:https://escrowagm.com/eagmZim/Login.aspx” 

August 18 – (10am)

 


zIMBABWE

 

2023 harmonised elections

August 23

 


Companies under Cautionary

 

 

 


 

 

 

 


CBZH

GetBucks

EcoCash

 


Padenga

Econet

RTG

 


Fidelity

TSL

FMHL

 


 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

 


DISCLAIMER: This report has been prepared by Bulls ‘n Bears, a division of
Faith Capital (Pvt) Ltd for general information purposes only and does not
constitute an offer to sell or the solicitation of an offer to buy or
subscribe for any securities. The information contained in this report has
been compiled from s believed to be reliable, but no representation or
warranty is made or guarantee given as to its accuracy or completeness. All
opinions expressed and recommendations made are subject to change without
notice. Securities or financial instruments mentioned herein may not be
suitable for all investors. Securities of emerging and mid-size growth
companies typically involve a higher degree of risk and more volatility than
the securities of more established companies. Neither Faith Capital nor any
other member of Bulls ‘n Bears nor any other person, accepts any liability
whatsoever for any loss howsoever arising from any use of this report or its
contents or otherwise arising in connection therewith. Recipients of this
report shall be solely responsible for making their own independent
investigation into the business, financial condition and future prospects of
any companies referred to in this report. Other  Indices quoted herein are
for guideline purposes only and d from third parties.

 


 

 


(c) 2023 Web: <http://www.bullszimbabwe.com>  www.bullszimbabwe.com Email:
<mailto:info at bulls.co.zw> bulls at bullszimbabwe.com Tel: +263 4 2927658 Cell:
+263 77 344 1674

 


 

 

 

 

 

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