Prices of housing in Namibia remain concern

26 Apr 2016 14:00pm
WINDHOEK, 26 APR (NAMPA) – The most expensive house sold in Namibia during the first of the quarter of 2016 was a house worth N.dollars 9.6 million in Auasblick.
The most affordable house sold during the same period was N.dollars 441 000 in Windhoek’s Okuryangava residential area, according to information contained in the First National Bank of Namibia (FNB) Housing Index issued on Monday.
The first quarter started in January and ended in March 2016.
FNB Group's market research manager, Daniel Kaveshi said the most mortgage transactions were recorded for amounts between N.dollars 700 000 and N.dollars 1.5 million in the areas of Rocky Crest, Wanaheda, Finkenstein and Elisenheim during the first quarter of 2016.
He said in Okahandja, volumes of houses sold picked up towards the end of March despite most houses being sold under N.dollars 1.5million.
“There was an increase in the sale of land in the area with land sales currently accounting for 46 per cent of sales in the area,” he noted.
Kavishe explained that the coastal housing volumes took a dive by 52 per cent in the fourth quarter of 2015 (October-December) as a result of limited transactions in Henties Bay and prices edging higher in Swakopmund.
Median prices across the three towns were N.dollars 1 million in Swakopmund, N.dollars 872 000 in Walvis Bay, and N.dollars 1.1 million in Henties Bay.
Growth in the coastal region is mainly caused by increased economic activity in Swakopmund and Walvis Bay as businesses continue to extend their operations across the coastal area.
“Fortunately for most consumers, the rate of growth in the region has slowed considerably since the second quarter of 2015 (April-June) with the quarterly current growth rate at 4 per cent,” Kavishe said.
He, however, noted that the prices of properties have grown by 10 per cent in northern Namibia, which recorded the fastest growth on a quarterly basis across the whole country.
Kavishe emphasised that housing volumes in the northern area have declined by 41 per cent as seasonal factors set in. However, the housing market is expected to remain robust over the next few years, with valuations being affordable for most of the residents.
Median prices across Oshakati, Ongwediva and Rundu were recorded as N.dollars 544 000, N.dollars 712 000 and N.dollars 722 000 respectively.
“A slowdown in growth in prices as new developments come on-stream can be expected in 2016. Ondangwa and Ongwediva however will continue to have a robust housing market environment,” he noted.
Kavishe observed that most towns in the southern part of the country continue to record minimal transactions every month, as the median price during the first quarter was N.dollars 400 000 across the region.
He said prices in that area have declined by 25 per cent since last year, however it remains a good region for farm purchases with the price per square metre of land declining to N.dollars 239 from N.dollars 678 in 2014.