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Decelerating real house prices

According to Namene Kalili, Manager Research at FNB Namibia, the FNB House Price Index has regained some lost ground through May as the index increased by 3.4% month on month. Overall, house prices moved upwards as a result of the tremendous increase in demanf for large and expensive coastal homes, but in real terms, if this category is excluded, house prices rose slower than inflation. The value of large coastal homes shot up by 86% from the same period last year and it is this shift that led median house prices to increase during May. “However, real house prices continued to increase at a much slower pace than they did last year. Overall volumes increased by 1.2% year on year, despite the substantial surge in large coastal properties traded during the month,”Kalili noted. The housing index also reported that central property prices increased by 8.7% month on month to bring the annualised growth rate to 12.1%.

“The general price trend appears to have bottomed out for now at a median house price of N$692,000. The lower price segment continued to experience downward price pressure, where property prices fell by 6.1% year on year, while mild positive price gains have started creeping back into the upper price segment, said Kalili. The year to date figures shows that house prices contracted in Windhoek, Gobabis and Okahandja. The index states that it is worthwhile to note that volumes had contracted by 10.4% month on month and were down by 11.6% from the same period last year.  Supply was particularly thin in the lower price segments, where volumes contracted by 24% from the previous month. Land delivery improved as 8 stands were mortgaged at an average price of N$167/m². Furthermore, 10,000m² of land was mortgaged for the first time by developers, with a maximum yield potential for 23 free standing homes. Therefore the cumulative developer activity for the central market stands at 307,380m² of land with a maximum yield potential of 717 free standing houses – a definite improvement from the prior year.  Northern property prices continued on a downward trend, shedding 3.4% of their value from the previous month or 4.9% from the same period last year. Northern house prices fell between 3% and 6% from the previous month across all price segments. The year to date data shows that falling median prices were somehow limited to Oshakati, Omaruru, Otavi and Grootfontein.  Southern property prices remained as volatile as always, due to very thin volumes. Monitored house prices fell by 45.2% month on month due to a combination of downward price movements in the lower price segment, where price fell by 31% and a shift in the supply mix towards more low income properties. Kalili emphasised that overall house price moved upwards mainly because of increased demand for large coastal homes. “Despite this shift in the marketing mix, house prices continued to increase at a much slower pace than they did last year. This is largely due to increased volumes traded in the year to date.” He added that volume growth should start to shift to the middle price segment as he believed that the upper price segment was saturated, which would put downward pressure on median house prices for the remainder of 2013.

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Following reverse listing, public can now acquire shareholding in Paratus Namibia

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20 February 2020, Windhoek, Namibia: Paratus Namibia Holdings (PNH) was founded as Nimbus Infrastructure Limited (“Nimbus”), Namibia’s first Capital Pool Company listed on the Namibian Stock Exchange (“NSX”).

Although targeting an initial capital raising of N$300 million, Nimbus nonetheless managed to secure funding to the value of N$98 million through its CPC listing. With a mandate to invest in ICT infrastructure in sub-Sahara Africa, it concluded management agreements with financial partner Cirrus and technology partner, Paratus Telecommunications (Pty) Ltd (“Paratus Namibia”).

Paratus Namibia Managing Director, Andrew Hall

Its first investment was placed in Paratus Namibia, a fully licensed communications operator in Namibia under regulation of the Communications Regulatory Authority of Namibia (CRAN). Nimbus has since been able to increase its capital asset base to close to N$500 million over the past two years.

In order to streamline further investment and to avoid duplicating potential ICT projects in the market between Nimbus and Paratus Namibia, it was decided to consolidate the operations.

Publishing various circulars to shareholders, Nimbus took up a 100% shareholding stake in Paratus Namibia in 2019 and proceeded to apply to have its name changed to Paratus Namibia Holdings with a consolidated board structure to ensure streamlined operations between the capital holdings and the operational arm of the business.

This transaction was approved by the Competitions Commission as well as CRAN, following all the relevant regulatory approvals as well as the necessary requirements in terms of corporate governance structures.

Paratus Namibia has evolved as a fully comprehensive communications operator in Namibia and operates as the head office of the Paratus Group in Africa. Paratus has established a pan-African footprint with operations in six African countries, being: Angola, Botswana, Mozambique, Namibia, South Africa and Zambia.

The group has achieved many successes over the years of which more recently includes the building of the Trans-Kalahari Fibre (TKF) project, which connects from the West Africa Cable System (WACS) eastward through Namibia to Botswana and onward to Johannesburg. The TKF also extends northward through Zambia to connect to Dar es Salaam in Tanzania, which made Paratus the first operator to connect the west and east coast of Africa under one Autonomous System Number (ASN).

This means that Paratus is now “exporting” internet capacity to landlocked countries such as Zambia, Botswana, the DRC with more countries to be targeted, and through its extensive African network, Paratus is well-positioned to expand the network even further into emerging ICT territories.

PNH as a fully-listed entity on the NSX, is therefore now the 100% shareholder of Paratus Namibia thereby becoming a public company. PNH is ready to invest in the future of the ICT environment in Namibia. The public is therefore invited and welcome to acquire shares in Paratus Namibia Holdings by speaking to a local stockbroker registered with the NSX. The future is bright, and the opportunities are endless.