The rental market continues to bottom-out
although at a moderate pace. The FNB Rental Index as at December 2019 showed a
contraction of 0.8%, although this reflected a steep improvement from a
contraction of 8.6% recorded over the same period in 2018.
The public’s interest in 2-bedroomed
accommodation rose by 6.6% from December 2018 to December 2019, whereas
interest in 3-bedroomed homes rose by 16.2% during the same time frame. The
2017-2018 figures had been negative contractions of 10.2 % and 11.7% for
2-bedroomed and 3-bedroomed homes respectively.
The growing participation in the 2 to3-bedroom
segments and the resultant price pressures brought the average national rent
price to N$6 992 as at December 2019. This translates into an annual growth of
3.6%. On a quarterly basis, Swakopmund recorded the highest rental prices in
the fourth quarter of 2019, with the average rent recorded at N$9 274 per
month.
“This reflects a significant growth of
26.6% from December 2018 due to high public interest in 3-bedroomed homes, while
also pointing to deteriorating affordability of houses in the coastal towns,” said
Frans Uusiku, FirstRand Namibia Market Research Manager.
Meanwhile, Windhoek is the second
highest with respect to rental prices, with an average rent of N$6 545 per
month which is 2.5% less than the same period in 2018. Furthermore, the annual
contraction in rental prices in the fourth quarter of 2019 was witnessed across
other major populated towns such as Ondangwa (-34.7%), Rundu (-22.4%), Ongwediva (-17.1%) with
an exception of Oshakati, which saw growth of 6.7% in comparison to the last
quarter of 2018.
“The rebound in rental prices since May
2018 has continued its upward trajectory, although growth remains in negative
territory,” commented Uusiku.
The price-to-rent ratio of “13” means
that the national average house price is 13 times the national average rent
that could be earned per annum on a residential property”. This ratio increased
from nearly 11 points in July 2019.
“We expect growth in rental prices in the first
quarter of 2020, followed by stabilization,” concluded Uusiku.
For more
information, please call: 061 – 299 2222 or visit
www.fnbnambia.com.na 
