House prices show 19% y.o.y. increase
DURING the July period under review the FNB House Price Index moved sideways, but remains 19% higher than a year ago, while housing inflation as measured by the National Planning Commission came in at 8.1% and therefore house prices appreciated by 11% in real terms.
Volumes improved slightly to 115.3 basis points due to very strong volume growth in the upper price segment. Land delivery continued to improve, with a very strong coastal bias. A total of 58 new propert i e s mortgaged through the month as land delivery recovered to early 2008 levels. However, land delivery remained dismal in the central market, which is the lowest in four years.
On house prices Namene Kalili, Manager of Research and Competitor Intelligence at FNB Namibia, said that central house prices continued to fall during July due to the supply dynamics pushing down house prices in the middle price segment. At N$498 000, prices in the middle price segment are down 9% year on year and are at their lowest levels in the past three years.
?With that said, the middle price segment has enjoyed the strong volume growth, with volumes up 11% year on year due to a surge in new housing stock in Okahandja. Property prices in the upper price segment are up 19% year on year, which is about 11% in real terms, while their volumes are up 20%. Prices in the lower price segment fell 4% year on year, even though volumes continued to fall in excess of 40%,? he advised.
Kalili added that land delivery weakened to a four year low and although the respective land prices fell 20% to N$241 per sqm, it is very high for a piece of land in Okuryangava. Coastal property prices increased by 3% from the previous month and are now up 5% from July last year. There was a strong influx of young buyers in Swakopmund, which consequently slashed the average age of buyers from 45 to 31 years over the past 12 months for the middle price segment.
Prices in the lower price segment were down 9% year on year, while their respective volumes rose 21% year on year. Northern property prices climbed 6% month on month bringing the annualised growth to 7%. Distribution was skewed towards the upper end of the price scale and hence prices in the upper price segment rose 40% in value even though volumes were down 48%.
Volumes in the lower price segment continued to strengthen and were up 20% year on year while prices increased 20%. Demand for properties in the lower price segment remained high, especially newly proclaimed towns like Okahao, Omuthiya and Oshikuku. Property prices in the middle price segment were down 5%, while volumes grew 80% over the past year. Land delivery remained strong while land prices averaged N$10 per sqm as Otjiwarongo?s benevolent land delivery program rolled into its second month. Demand for property in the southern market remained sluggish, declining through July.
Volumes improved slightly to 115.3 basis points due to very strong volume growth in the upper price segment. Land delivery continued to improve, with a very strong coastal bias. A total of 58 new propert i e s mortgaged through the month as land delivery recovered to early 2008 levels. However, land delivery remained dismal in the central market, which is the lowest in four years.
On house prices Namene Kalili, Manager of Research and Competitor Intelligence at FNB Namibia, said that central house prices continued to fall during July due to the supply dynamics pushing down house prices in the middle price segment. At N$498 000, prices in the middle price segment are down 9% year on year and are at their lowest levels in the past three years.
?With that said, the middle price segment has enjoyed the strong volume growth, with volumes up 11% year on year due to a surge in new housing stock in Okahandja. Property prices in the upper price segment are up 19% year on year, which is about 11% in real terms, while their volumes are up 20%. Prices in the lower price segment fell 4% year on year, even though volumes continued to fall in excess of 40%,? he advised.
Kalili added that land delivery weakened to a four year low and although the respective land prices fell 20% to N$241 per sqm, it is very high for a piece of land in Okuryangava. Coastal property prices increased by 3% from the previous month and are now up 5% from July last year. There was a strong influx of young buyers in Swakopmund, which consequently slashed the average age of buyers from 45 to 31 years over the past 12 months for the middle price segment.
Prices in the lower price segment were down 9% year on year, while their respective volumes rose 21% year on year. Northern property prices climbed 6% month on month bringing the annualised growth to 7%. Distribution was skewed towards the upper end of the price scale and hence prices in the upper price segment rose 40% in value even though volumes were down 48%.
Volumes in the lower price segment continued to strengthen and were up 20% year on year while prices increased 20%. Demand for properties in the lower price segment remained high, especially newly proclaimed towns like Okahao, Omuthiya and Oshikuku. Property prices in the middle price segment were down 5%, while volumes grew 80% over the past year. Land delivery remained strong while land prices averaged N$10 per sqm as Otjiwarongo?s benevolent land delivery program rolled into its second month. Demand for property in the southern market remained sluggish, declining through July.
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