Swakop house prices up by staggering 42.26%

Housing prices in Swakopmund have grown by a staggering 42% in the last quarter, while prices in Walvis Bay increased at a much slower rate of 3%. These figures were revealed in the latest FNB Housing Index released recently. The index gives a broad overview of housing prices across the country.

“Coastal volume growth remains in negative territory at -36.68% as transaction demand weakens in all segments of the market. Median pricesacross the three towns were N$1.25 million in Swakopmund, N$841 000 in Walvis Bay, and N$1.1 million in Henties Bay during the second quarter of the year,” it states in the Index. The list is compiled by Daniel Kavishe, Market Research Manager FNB Namibia.
According to Kavishe the price growth in Swakopmund emanates mainly from the areas Extension 10, Extension 15 and Rössmund where property prices increased substantially since last year, thus pushing the overall median prices higher.
The price increase for houses in Swakopmund in the calculated timespan is the highest for the entire country. The highest increase after Swakopmund was registered in Oshakati (21.30%) followed by Windhoek (20.73%). The lowest increase has been calculated in southern towns (1.1%).
Kavishe reckons that the property market is expected to undergo structural changes over the next few periods as demand-side pressures ease and as supply gradually gains traction. “The decelerating disposable income growth the potential impact of any implementation of rent control are bound to reduce overall demand in both the investment and buy-to-live/let segments,” he states. Kavishe continues that changes in the regulatory environment “merely address the symptoms of a much bigger problem, namely the structural supply challenges.”
In the short run, consumers are facing tighter monetary conditions with rising inflation and higher interest rates. The expectation of sluggish wage growth for the remainder of the year will further exacerbate affordability issues. Compound these issues with the increase in cost of home ownership via rising property rates & taxes and higher utility tariffs, consumers delaying purchase decisions becomes expected.

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