The Zimbabwe National Bureau of Statistics (ZimStats) stated in its latest quarterly building material price index (BPMI) that as of the third quarter of September 2021, price increases have swept the local housing construction sector.
ZimStats said that from June to September 2021, the rate of change of BPMI was 13.80%, an increase of 5.12 percentage points from 8.68% in June.
Compared with the same period last year, the BPMI for September 2021 was 42.11% year-on-year.
This has emerged against the backdrop of a surge in the country’s individual housing construction and private sector-led infrastructure development.
The price increase focused on the BPMI third quarter index surge was attributed to the increase in the price of construction materials, including building lime, glazed salt pipe, gravel, glass, copper pipe, paint, storage tank, cement, corrugated asbestos, galvanized iron pipe and Steel windows.
The prices of wooden doors, nails, conifers, river sand, steel door frames, water heaters, bolts, switch boxes, faucet boards, bison boards, sinks, locks, cables, washbasins, and bathtubs have also risen. Showers, wall tiles, vinyl tiles, drainage gauges and termite poison.
Laminated pine, baseboard cedar, baseboard pine, parquet and water heaters all have moderate growth, so their contribution to the BPMI movement is insignificant.
The prices of low-rise suits, pit sand, distribution boxes, ducts, and roof tiles have fallen, thus promoting the balance of BPMI.
According to statistics from local cement manufacturers in 2021, the construction industry in Zimbabwe appears to be recovering, driven by public spending on infrastructure and private development.
However, the recent increase in cement prices may limit the recovery. On average, a 50 kg bag usually costs about $10.50, now it is about $13.
On the other hand, the monthly price index of the Civil Engineering Material Price Index (CEMPI) increased by 3.53 percentage points from 4.55% in August to 8.08% at the end of September.
The products that contributed the most to the increase in BMI in September 2021 are bricks, cement, profiled steel, diesel, river sand, shutters, gravel and concrete pipes.
The prices of asbestos pipes and bitumen were unchanged month-on-month, which had little impact on the index trend, while the decline in the prices of gate valves and joint materials led to the decline in the index.
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