2019 will most likely be a tough year for pricing in the property market – Expert
Property prices continued contracting aggressively across the country towards the end of 2018, according to the latset FNB Housing Index.
The index shows that previously, since the late nineties, property prices had grown by an average of 11%, however, the deep recession experienced over the past 2 years, has put severe strain on the sector. Central property prices contracted by 2.3% year on year while coastal prices edged even lower to 13.9% year on year, over the past year.
Moreover, current trends indicate that price pressures still exist in the high-medium to luxury segment which will undoubtedly lead to lower national average prices over the course of 2019.
“Nationwide, a single property stays in the market for four months, with most sellers forced to drop their selling price by 12.0% before securing a sale- further signs that the sector remains suppressed,” Daniel Kavishe, FirstRand Namibia Group Economist said.
Kavishe added that overall, 2019 will most likely be a tough year for pricing in the property market, adding that new developments in the low-cost market will possibly take centre stage, dragging average house prices down.
“Then there is the advancement in technology which means that the supply of alternative building methods will likely also reverberate across the country given the need that exists for basic shelter. Furthermore, with price pressures continuing due to higher unemployment and a weaker disposable income outlook, we believe that property prices will continue decelerating during this year and will likely only normalise in 2020,” Kavishe added.