Downward trend in housing market
Expect to pay on average N$1.2 million for a house in Windhoek, N$1 million at Okahandja and N$1.2 million at Swakopmund.
Although house prices remain elevated, the rate at which prices have risen in recent months is slowing. This is according to the latest housing index compiled by FNB Namibia.
Its housing analyst, Josephat Nambashu, recently shared the findings of the report.
According to Nambashu the FNB national house price inflation has accelerated to 11.18% over the past 12 months, but the overall trend continues to point downwards, with the longer trend being more pronounced in the central and northern regions.
“House price inflation has fallen from 22.2% to 12.1% for central properties and from 29.5% to 2.7% for the northern properties over the past two years.”
The central region has the highest property prices, trading consistently above N$1 million. On average, significant price growth has been recorded.
Gobabis properties averaged at N$800 000, Windhoek properties averaged N$1.2 million, while Okahandja averaged at N$1 million.
On the growth front, the northern region was second in terms of volumes (32%) and second lowest in value at just below N$700 000, producing the least in growth at 2.7% over the past 12 months down from 19% growth recorded last year in the same period.
“The coastal region's strong price increase is revealed in Swakopmund and Walvis Bay, with property prices increasing 28.6% and 23.4% respectively, taking the growth for the region to 19.1% for the past 12 months. This saw Swakopmund property prices increasing to N$1.2 million, while Walvis Bay property prices have increased to N$940 000,” says Nambashu.
Despite political and economic uncertainty in 2016, average house prices around the world rose at their fastest rate in almost three years, claimed the latest Global Knight Frank Price index report.
House prices around the world increased by 6% on average in 2016, up from 4.1% in 2015, the highest annual rate recorded in two years. More importantly, only seven of 55 economies experienced negative house price movements.
“Using the same methodology would place Namibia just after Lithuania in seventh position. The high house price increases are symptomatic of persistent structural supply challenges that are often addressed with ineffective demand side interventions,” Nambashu says.
STAFF REPORTER
Its housing analyst, Josephat Nambashu, recently shared the findings of the report.
According to Nambashu the FNB national house price inflation has accelerated to 11.18% over the past 12 months, but the overall trend continues to point downwards, with the longer trend being more pronounced in the central and northern regions.
“House price inflation has fallen from 22.2% to 12.1% for central properties and from 29.5% to 2.7% for the northern properties over the past two years.”
The central region has the highest property prices, trading consistently above N$1 million. On average, significant price growth has been recorded.
Gobabis properties averaged at N$800 000, Windhoek properties averaged N$1.2 million, while Okahandja averaged at N$1 million.
On the growth front, the northern region was second in terms of volumes (32%) and second lowest in value at just below N$700 000, producing the least in growth at 2.7% over the past 12 months down from 19% growth recorded last year in the same period.
“The coastal region's strong price increase is revealed in Swakopmund and Walvis Bay, with property prices increasing 28.6% and 23.4% respectively, taking the growth for the region to 19.1% for the past 12 months. This saw Swakopmund property prices increasing to N$1.2 million, while Walvis Bay property prices have increased to N$940 000,” says Nambashu.
Despite political and economic uncertainty in 2016, average house prices around the world rose at their fastest rate in almost three years, claimed the latest Global Knight Frank Price index report.
House prices around the world increased by 6% on average in 2016, up from 4.1% in 2015, the highest annual rate recorded in two years. More importantly, only seven of 55 economies experienced negative house price movements.
“Using the same methodology would place Namibia just after Lithuania in seventh position. The high house price increases are symptomatic of persistent structural supply challenges that are often addressed with ineffective demand side interventions,” Nambashu says.
STAFF REPORTER
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