Oshakati land price increases to 57% in 7 years
The cost of land in Oshakati’s high-end suburb of Extension 16 has risen significantly, now standing at N$350 per square meter, reflecting an increase of more than 57% compared to 2018. Back then, land was sold at N$150 per square meter. The rising cost of serviced land and housing continues to pose a challenge for thousands of Namibians, yet the issue seems to have been taken lightly, allowing some towns to increase land prices significantly. At one point, land affordability was a cornerstone issue in local politics.
In 2018, purchasing an 880 square meter plot in Extension 16, an area considered an upper-class suburb, would have cost N$132,000. However, the same size of land now costs N$308,000. This sharp rise in land prices was highlighted in an advertisement by the Oshakati Town Council this week, which offered seven plots totaling 6,743 square meters for a combined price of N$2,360,050.
According to Katarina Kamari, the spokesperson for the Oshakati Town Council, the land sold in 2018 was developed using a loan from the Development Bank of Namibia (DBN) and was subsidized by the council to enhance affordability. In contrast, the plots currently on sale were funded through the council’s self-funding programme and are being sold at cost-recovery rates. Kamari explained that the price of land is determined by the council, guided by prevailing market conditions.
While Kamari did not provide details about the housing and land backlog in Oshakati, she did share statistics on completed and ongoing projects related to land servicing. According to her, Oshakati is leading in land and housing delivery in Namibia, having allocated 270 plots in Extension 16, 3,000 plots partly allocated at Onawa settlement, 2,800 plots at Ehenye township, and 2,700 plots at Ekuku township. Additionally, the council has partly serviced 2,600 plots at Ompumbu settlement.
In 2018, the Namibian Sun reported that Oshakati, with support from the government through the Ministry of Urban and Rural Development, spent more than N$250 million on a mass land servicing programme. Thousands of plots were serviced at that time, but some of the serviced land was allocated to well-connected individuals tasked with constructing houses. However, some failed to fulfill these obligations, further complicating the land and housing situation in the town.
In 2018, purchasing an 880 square meter plot in Extension 16, an area considered an upper-class suburb, would have cost N$132,000. However, the same size of land now costs N$308,000. This sharp rise in land prices was highlighted in an advertisement by the Oshakati Town Council this week, which offered seven plots totaling 6,743 square meters for a combined price of N$2,360,050.
According to Katarina Kamari, the spokesperson for the Oshakati Town Council, the land sold in 2018 was developed using a loan from the Development Bank of Namibia (DBN) and was subsidized by the council to enhance affordability. In contrast, the plots currently on sale were funded through the council’s self-funding programme and are being sold at cost-recovery rates. Kamari explained that the price of land is determined by the council, guided by prevailing market conditions.
While Kamari did not provide details about the housing and land backlog in Oshakati, she did share statistics on completed and ongoing projects related to land servicing. According to her, Oshakati is leading in land and housing delivery in Namibia, having allocated 270 plots in Extension 16, 3,000 plots partly allocated at Onawa settlement, 2,800 plots at Ehenye township, and 2,700 plots at Ekuku township. Additionally, the council has partly serviced 2,600 plots at Ompumbu settlement.
In 2018, the Namibian Sun reported that Oshakati, with support from the government through the Ministry of Urban and Rural Development, spent more than N$250 million on a mass land servicing programme. Thousands of plots were serviced at that time, but some of the serviced land was allocated to well-connected individuals tasked with constructing houses. However, some failed to fulfill these obligations, further complicating the land and housing situation in the town.
Comments
Namibian Sun
No comments have been left on this article