The First National Bank House Price Index fell by 2.5% in February, but house prices still remain 21% higher than the same period last year, latest research by the bank shows.
Manager Research and Competitor Intelligence at FNB Namibia, Namene Kalili said that this figure is somewhat lower than the annualised growth for 2012 which stood at 25%.
“Property prices grew fastest in the lower price segments, while contracting in the upper price segment. Although the volume index continued to fall on a month to month basis, this was to be expected given historical trends, the annualised figures show that volumes have surpassed the February levels seen over the past 4 years and may be indicative of a recovery in volumes," Kalili said
Kalili also added that central and coastal property markets were largely responsible for the increased volume growth.
"Volume growth in the upper price segment drove the trend in the central market, while volume growth in the middle price range drove the trend at the coast. Land delivery remained weak as 17 stands were mortgaged through the month, while developers mortgaged 94,200m² during February with a maximum yield potential of 220 free standing homes.” said Kalili.
The FNB Housing Index continued to state that central property prices remained 25% higher than the same period last year hovering around the N$690 000 mark.
Regarding northern house prices, the FNB Index states that these fell by a further 4.6% month on month to bring the year to date decline to 7.1%.
“February saw volumes recover to November 2012 levels and although there are indications of stronger volume growth through 2013, it is doubtful that the volumes will be sufficient to meet market demand. According to our calculations the market is undersupplied by 80%. It is this supply imbalance, along with a shift in housing mix, in favour of more expensive properties, that is currently driving the trend in local house prices," said Kalili.