House prices rising again
The House Price Index increased by 8% month on month to 150 basis points in March, according to the latest FNB report.
But despite the steady monthly growth, year -on-year, the index only grew by 0.6%.
There were strong price increases in many of the northern towns such as Katima Mulilo, Grootfontein, Otjiwarongo, Oshikango, and Oshikuku, but property prices in Windhoek have weakened by 2% in 2012.
Namene Kalili, Manager: Research and Competitor Intelligence at FNB Namibia said: “Overall volumes remained very weak through March and were down 4% month on month and down 14% year on year.”
Numerous properties in the upper price segment were withdrawn from the market after spending several months on the market without a sale, implying that demand is weakening in the upper price segment at the current market price.
Bond registrations for Elisenheim and Omeya are in full swing and these are expected to support volumes for the remainder of the year. Land delivery fell to a new low with a mere 21 stands bonded through March.
In the central area, property prices rose 7% month on month but are down 7% on an annualised basis. Despite increased supply in Okahandja, property prices have soared 41% over the first 3 months of 2012 as rising demand pushed up prices. Gobabis was not too far behind and house prices have already risen by 25% this year.
At the coast, property prices continued to improve from their December low, with a further 9% month on month increase but down 4% year on year.
Coastal house prices generally increase during the second quarter and peak in July, but this year the price increases have started a month earlier than expected.
“This is due to price increases in Henties Bay, where property prices rose 18% in the year. Both Swakopmund and Walvis Bay experienced negative price growth, with house prices down 3 and 4% respectively.” Kalili said.
Northern Namibia property prices continued on an upward trajectory, climbing a further 10% in March and raising the year on year growth figure up to 18%. House prices in Omaruru and Grootfontein have risen 102 and 76% respectively, while Otjiwarongo, Okahao, Oshikango and Oshikuku have all posted double digit growth figures.
House prices in the southern property market continued to increase dramatically. House prices in Luderitz and Mariental rose 108% and 61% respectively, while those in Keetmanshoop were flat.