Windhoek:A recent report from the FNB House Price Index has indicated that the average house price in Namibia has risen to N$1,502,539. This represents an increase of N$122,497 from the previous year's average of N$1,380,042.

According to Namibia Press Agency, the report highlights a growth of 8.9% in the house price index on a 12-month average basis, up from 7.4% in the second quarter and 5.9% a year ago. The report categorizes homes by price band, noting that small homes average N$956,000, medium homes N$2,174,000, large homes N$4,484,000, and luxury homes N$8,526,000.

Regionally, the central region has the highest average house price at N$1,936,000, followed by the coastal region at N$1,532,000, the northern region at N$991,000, and the southern region at N$892,000. Price changes were also noted, with an 11.4% rise in the central region, a 3.7% increase in the coastal region, a 1.6% increase in the northern region, and a 3.4% decrease in the southern region.

In terms of specific towns, Windhoek saw a significant price increase of 17.0% year-on-year, with an average house price of N$1,848,267. Other towns such as Henties Bay, Swakopmund, Walvis Bay, and Okahandja showed varied price changes, with Swakopmund and Walvis Bay experiencing declines.

The report also details plot costs, which vary by region, and notes a contraction in transaction volumes by 3.0% with 841 properties changing hands nationally in the quarter. Factors such as limited housing stock, slow land servicing, affordability pressures, and higher inflation are impacting the market. The repo rate increase to 7.00% is expected to further affect mortgage finance demand.

The outlook suggests firm prices and weak turnover until improvements in land servicing, housing delivery, and household income growth occur. The report uses bond values as a proxy due to the lack of consistent house price records in Namibia, indicating that the figures provide a general guide, particularly in towns with fewer transactions.

Source NAMPA