Housing Index Closed 2013 on g Foot

THE FNB House Price Index closed 2013 on the front foot, increasing by 4, 6% in December to bring the annual increase to a hefty 20,8%.

House price inflation was mostly driven by properties in the upper price segment, where property prices increased by 23% year on year, with a median price of N$1,93 million.

Property prices in the middle price segment increased by 18% year on year, with a median price of N$1,1 million, while properties prices in the lower price segment increased by 12% year on year, with a median price of N$481 000.

Housing supply increased by 33%, with most of the volume growth coming from the lower price segment where volumes rose 40% year on year.

The northern regions property market experienced record volume growth, with volumes up 90% year on year, making it the second largest property market in the country by volume. Further analysis shows that volumes in the northern property markets lower price segment shot up by 160% over the past year.

Property rental prices prices increased by seven percent month on month, to bring the year on year change to 44% and end the year at a median price of N$995 000.

Data also showed that house prices in Windhoek have risen by 18%, and by 11% in Okahandja, while Gobabis property prices have risen by 15%. On the coast, property prices increased by seven percent month on month or 51% year on year, with a median price of N$752 000.

The data also showed that Walvis Bay property prices have increased by 28%, Swakopmund property prices have increased by 10%, while Henties Bay property prices contracted by one percent.

FNB said house prices in Eenhana, Katima Mulilo, Oshikango, Otavi and Rundu had double digit price growth.

According to the Knight Frank Global House Price Index, international property prices rose by 8,4% during 2013, which is the highest annual growth rate since the 1995.

Dubai, China and Taiwan top the list with the highest property price increases over the fourth quarter of 2013. Although Europe still dominates the bottom of the global listing, the rate of decline is slowing down. Much of the recovery in global house prices has been underpinned by improved employment levels and the continuation of low interest rates.

Namibia’s ranking on the index improved during the reporting period from the 53rd in the third quarter to 16th in the fourth quarter.

Source : The Namibian