House prices move sideways

FNB Namibia has released the housing index focusing on the month of January 2013. Namene Kalili, Manager Research and Competitor Intelligence at FNB Namibia said that historically January has always been a weak month, with very few transactions being lodged at the Deeds Office, which was closed for half the month. “The few bonds that were registered showed that house prices moved sideways from the previous month,” he added.
Central property prices continued to recover from their November low, gaining a further 1.4% in value during January 2013 due to price movements in the middle price segment. “Coastal property prices moved sideways and appear to be bottoming out of their seasonal slump. Northern house prices fell by 2.5% month on month. House prices in the southern property market fell by a further 14% mainly due to price movements in the middle to upper price segments. Land delivery was insignificant as 5 plots were mortgaged through the month, while a total 50,000m² of land was mortgaged by developers through the month, with a maximum yield potential for 120 free standing homes,” said Kalili.
The report further stated that smaller property prices fell by 9% month on month in the central area, while medium to large sized property prices increased by 6 and 1 percent, respectively. The upward price movement was due to property prices rising 6% month on month in Okahandja, while Windhoek property prices remained unchanged. Coastal property prices moved sideways after falling over the previous four months. Monitored house prices at the coast fell in the lower and upper price, while property prices in the middle price segment rose by 5% month on month. Northern house prices fell by 2.5% month on month due to weaker property prices in the upper price segment, while property prices in the lower to middle price segment improved moderately.