Namibia’s house prices posted a contraction of 5.9 percent year-on-year at the end of March this year compared to a contraction of 1.5 percent recorded over the same period of 2019, according to the First National Bank (FNB) of Namibia’s House Price Index.
This brought the average national house price to a 5-year record low as in March 2020, said Frans Uusiku, FNB market researcher, on Tuesday.
“Although overall house prices in the central and coastal regions have remained buoyant, registering a growth of 8.2 percent year on year and 7.2 percent year on year over the first quarter respectively, this was overshadowed by steep contractions of 18.7 percent year on year and 13.6 percent year on year recorded in the northern and southern regions respectively,” he added.
The outlook looks bleak for property prices from a market perspective as widespread job losses and income uncertainty induced by COVID-19 do not bode well for demand, Uusiku said.
“Although data contained within the report is unlikely to reflect the economic impact of COVID-19, the second-quarter activity will likely print lower home sales figures, which may exert further downward pressure on price growth,” he concluded. Enditem