House Prices Rise Higher Than South Africa and U.S

THE FNB House Price Index for February released yesterday show that house prices have continued to increase on an annual basis and are increasing at a higher rate than South Africa and the United States.

Namene Kalili, Manager Research and Competitor Intelligence at FNB Namibia said annual figures reflect a 13% increase in property prices.

The upward price pressure on annual figures, came from the middle to lower price segments, where property prices increased by 19% and 25% respectively.

On average, consumers paid N$506 000 for entry level property, N$1 197 000 for a property in the middle price segment and N$2 134 000 for a property in the upper price segment.

In the central region, prices increased by 22% year on year to close the month at median price of N$829 000.

Data shows that property prices in Okahandja have risen by 28%, while they rose by seven percent in Windhoek and two percent in Gobabis.

At the coast, median prices shot up to N$1.2 million, while prices in the uper price segment increased by 15% to an average price of N$1 823 000 for the month.

Property prices at the coast rose the highest in Walvis Bay (44%) followed by Swakopmund (21%), while Henties Bay property prices rose by two percent.

In the north of the country, prices increased by seven percent to N$483 000 on account of ger property prices across all price segments.

“But it was the upper price segment that stood out with property prices increasing by 64% on an annual basis and averaging N$3 375 000.

In the south, property prices fell by 14% on an annual basis with a median price of N$336 000.

“Annualised house prices continue to increase on the back of low supply of new and existing housing units. This has resulted in local property prices increasing at a much faster rate than South Africa and US property markets. While volumes have increased over the past year, the near-term data shows that short-term supply is waning. However, there has been g growth in the land delivery numbers and developer activity, through 2013 and 2014 and it is this activity that is expected to drive volume growth in the latter part of 2014 and possibly provide some price relief in a market that remains grossly undersupplied,” said Kalili.

Source : The Namibian