Property prices continue to increase
FNB’s latest housing index indicates that property prices continued to increase, albeit at a slower pace, during the second quarter of 2015.
Daniel Kavishe, Market Research Manager at FNB Namibia Holdings said, “On a quarterly basis the price index advanced 17% supported mainly by price growth during the month of May and June. The volume index has eased with current quarterly growth of 2%, lower than 8% that was recorded for the same period last year. Compared to the first quarter of the year, the index showed that volumes have dwindled by 3% mainly on the back of poor volumes across all regions during May.”
Kavishe said that central property prices grew substantially with data from Windhoek indicating a 23% growth in median prices while prices in Okahandja grew by 12,6%. “When looking at Windhoek, prices in Omeya have doubled with average median price in the area valued at N$ 1,8 million for the quarter but with median stand size of 1091m2. Finkenstein came in at N$1 million similar to prices in Dorado Park and Elisenheim. In the upper segment, prices in areas like Eros have increased by 77%. Meanwhile, in areas such as Klein Windhoek and Olympia, growth in prices has declined by 21% and 23% quarter on quarter. “Across the central area volumes are generally up by 27%, a good sign that the property market is still quite active, despite high prices” he said.
When looking at the coastal area, the FNB Housing index reveals that coastal towns have shown growth in the median house segment with volumes of transactions increasing by 17%. Transactions for the top end of the market are down 36.4% quarter on quarter as median prices in that segment grew by 29%, thus averaging median price of N$2.9 million. The sharp rise in prices in this upper segment is supported mainly by increasing prices in Swakopmund with median bond sizes valued at N$4.5 million. High value transactions were recorded in extension 18 valued at N$5 million. Walvis Bay recorded the highest quarterly growth volumes 30% followed by Swakopmund at 16%.
Prices of houses in the Northern regions recorded an overall growth of 15% quarter on quarter as areas like Ongwediva, Arandis and Tsumeb record significant transactions during the quarter. Ongwediva recorded a growth of 56% pushing the median price in the area to N$784,000. Ondangwa recorded 26 transactions at the end of June and a total of 39 transactions for the quarter making it the fastest growing Northern town followed by Eenhana and Ongwediva. Median prices in Keetmanshoop and Luderitz edged towards the 700,000 mark at the end of June but this was a result of a few isolated large transactions. Volumes were however up 11% for the quarter mainly as a result of increased activity in Lüderitz. Very few transactions were recorded in Mariental for the quarter as was the case for Bethanie and Stampriet.
“The growth in house prices will remain a permanent feature of discussion for the next few quarters. With soaring energy prices coupled with slow processes across the municipalities, delivery of serviceable land could roll out at a slower pace than anticipate.” he said.