More properties selling below the selling prices.
15 Aug 2012
The First National Bank, FNB, says more properties are selling below the selling prices.
Its Research and Competitor Intelligence Manager, Namene Kalili, explained that this was mainly the case in the upper price segment, because they are overpriced.
He noted a slow pace in the sale of properties, with almost three quarters of properties spending more than three months on the market.
The information was contained in the FNB Housing Index released today (wed).
Kalili stated that although overall volumes in housing improved by 30 percent monthly, they still remain 13 percent lower, compared to previous years.
He said the cause was largely due to supply and demand that are weakening at the coastal and northern markets.
Kalili said land delivery remains an issue with only 29 stands mortgaged, while there is a need to expand selling land in cheaper municipal areas
He says if this does not happen the market will face increasing housing demand along with increasing property prices.
Gobabis and Okahandja continue to grow by 18 and 31 percent, respectively.
However, Windhoek the largest market by far, shows a negative growth.