National Housing Enterprise’s drive to create affordable accommodation is paying off the latest FNB housing index shows.
According to Research and Competitor Intelligence at FNB Namibia, Manager: Namene Kalili, said housing supply has begun shifting towards the middle to lower price segments, where NHE delivered new housing stock in Otjomuise and Kuisebmond, which lowered the median house price for October last year.
“A few more months are required to sustain the decline in the median house prices. Unfortunately there was very little evidence of increased affordable housing supply in the near term and thus the October house prices were merely a temporary relief,” Kalili said.
Kalili added that central housing prices fell for the first time in seven months and this was due to the NHE Otjomuise development which added 9% to total volumes traded in the central market and thus reduced the median house price.
“Year to date, house prices in Windhoek continue to increase, but at a slower pace than the third quarter. On the topic of coastal property prices Kalili advised that these usually slump during the third and fourth quarters and therefore the 6.3% month on month decline during October was hardly surprising, with increased housing delivery contributing to the decline. NHE’s Kuisebmond development pushed up month on month volumes by 4% along with a 5% decline in the median house prices in the middle price segment,” Kalili said.
The index also shows that Northern house prices increased by 13.2% month on month and this was due to an increase in the house prices in the lower price segment on the back of weak volumes.
The FNB Housing index also states that volumes continue to grow in the local market due to various new developments taking place across the country.
“This is positive for the housing market as it closes the gap between demand and supply in a market which has been undersupplied for quite some time and this is already shifting the median house price downwards,” Kalili said adding that “Unfortunately there is very little evidence to suggest that this will develop into a trend, since land delivery remains very weak. Over the medium to longer term however, developer activity looks very promising and the October figure could deliver as many as 1,900 new homes. Therefore volumes should increase consistently in the medium term and have a stabilising effect on house prices.”