WINDHOEK, Feb. 21 (Xinhua) -- Namibian property prices have continued contracting aggressively across the country towards the end of 2018, according to an economist.
An FNB Housing Index issued Thursday by Daniel Kavishe, FirstRand Namibia Group Economist noted that since late 1990s, property prices had grown by an average of 11.0 percent annually as the economy evolved, businesses flourished and disposable income increased.
"The steady GDP annual growth rate of about 4.0 percent over that period created ample demand that buoyed residential property prices. However, the deep recession experienced over the past two years, has put severe strain on the sector," he said.
Kavishe said current trends indicated that price pressures still existed in the high-medium to luxury segment which will undoubtedly lead to lower national average prices over the course of this year.
"At the moment, nationwide, a single property stays in the market for four months, with most sellers forced to drop their selling price by 12.0 percent y/y (year on year) before securing a sale - further signs that the sector remains suppressed," said Kavishe.
Meanwhile, on a regional level, central region property prices contracted 2.3 percent y/y while coastal region prices edged down by 13.9 percent y/y over the past year.
"As the latent impact of new property influences the market, price pressures are expected to continue across coastal towns." he said.
Northern region property prices started to feel the pressure as prices slipped 1.5 percent y/y at the end of last December. In the South, property prices contracted by 2.9 percent y/y.
