House prices decelerate temporarily
Namene Kalili, Manager Research and Competitor Intelligence at FNB Namibia said, “Although the FNB House Price Index fell dramatically on a month on month basis through January, the decline was merely seasonal as fewer properties were sold during January.”
Kalili said the year on year figures stripped out the seasonal fluctuation and reflected a 10% year-on-year increase in local property prices.
The upward price pressure came from the middle to lower price segments, where property prices increased by 18 and 23 percent respectively. Property prices continued to increase, albeit at a slower pace than in December 2013. This deceleration was largely on account of an increased number of lower income properties that were sold during the month.
“When looking at the various regions in Namibia we took note that central property prices fell by 13% month-on-month in January due to seasonality,” he said.
“However, year-on-year house prices rose by 25% to close the month at a median price of N$874,000. The upward price pressure came from all price segments in the central property market, where property prices in the lower price segment increased by 16% year-on-year, while house prices in the middle to upper segment increased by 18 and 27 percent respectively,” he added, stating that the year-to-date data show that Windhoek property prices are up 53%, while rising 35 and 20 percent in Gobabis and Okahandja respectively.
Kalili said, “The housing index also looks at coastal property prices which increased by 40% year on year to end the month at a median price of N$701,000. The year-to-date data show that Walvis Bay property prices have decreased by 13%, Swakopmund property prices have increased by 71%, while Henties Bay property prices contracted remained flat. Northern property prices fell by 9% year on year on account of weaker property prices in the upper price segment, where property prices fell by 7% year on year.”
“This market continued to enjoy robust volume growth, with volumes up 98% year on year, which has helped reduce house prices in the northern property market. Year to date shows that Tsumeb, Rundu, Outapi, Otjiwarongo, Ondangwa and Ongwediva property prices are on the increase, while Omuthiya property prices declined through January,”he added. Kalili said that house prices continued to increase on the back of low supply of new housing units.