Decelerating real house prices

According to Namene Kalili, Manager Research at FNB Namibia, the FNB House Price Index has regained some lost ground through May as the index increased by 3.4% month on month. Overall, house prices moved upwards as a result of the tremendous increase in demanf for large and expensive coastal homes, but in real terms, if this category is excluded, house prices rose slower than inflation. The value of large coastal homes shot up by 86% from the same period last year and it is this shift that led median house prices to increase during May. “However, real house prices continued to increase at a much slower pace than they did last year. Overall volumes increased by 1.2% year on year, despite the substantial surge in large coastal properties traded during the month,”Kalili noted. The housing index also reported that central property prices increased by 8.7% month on month to bring the annualised growth rate to 12.1%.