Namibian House Prices continue to decrease - Latest FNB House Price Index Update
PUBLISHED 22 FEB 2019
According to the most recent FNB House Price Index for 2018, property prices in Namibia is slightly decreasing. We’ve taken a closer look at what exactly this means for current homeowners and future homeowners.
John Loos, Property Sector Strategist for Commercial Property Finance at FNB, made the following statement; “A key expected “theme” for 2019 is ongoing real property price “correction”. House price growth appears to have found a “range” not far from 4% year-on-year, which continues to reflect gradual decline in real terms.”
One of the “themes” that FNB has identified for 2019 is the ongoing gradual real property prices correction. This refers to the FNB House Price Index that continued to hover in the low single-digit growth region, at around 4% year-on-year.
This low single-digit growth in standard nominal terms, translates to a year-on-year price decline in “real” terms, when adjusting for CPI (Consumer Price Index) inflation.
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What this mean for current homeowners wanting to sell:
Daniel Kavishe, FirstRand Namibia Group Economist has this to say; “Nationwide, a single property stays in the market for four months, with most sellers forced to drop their selling price by 12.0% before securing a sale, further signs that the sector remains suppressed.”
Kavishe furthermore mentioned that this year (2019), will overall, still be a challenging year for pricing in the property market. However, new development in low-cost market will take the spotlight, which will force average house prices down.
What does this all mean to new homeowners?
The recession experienced over the past 2 years, has put severe strain on the housing sector. Central Namibian property prices contracted by 2.3% year on year while coastal prices edged even lower to 13.9% year on year, over the past year.
Current trends indicate that price pressures still exist, and especially in the high-medium to luxury properties. This will lead to lower national average prices over the course of 2019 and 2020.
Karlien Van Der Westhuizen, Marketing & PR for MyProperty Namibia, summarised that; “this means new homeowners looking for property on the coastal towns of Namibia will be able to find homes at reduced rates.”
This is the ideal time to purchase your first property or invest in a second or third property. For 2019, it is a buyer’s market in Namibia. Browse MyProperty Namibia portal today to find your ideal home: www.myproperty.com.na