INTERNATIONAL –The contraction in housing prices in Namibia is set to continue, given the depressed economic environment, an expert said on Monday.
Ruusa Nandago, market research manager of Namibia's First National Bank (FNB) said this in the bank's latest property report released Monday.
"Our view is therefore that the risk of further declines in house prices remains elevated, as risks to the macroeconomic outlook remain on the downside and disposable income growth comes under pressure," she said.
"With consumer demand becoming weaker, we do not expect that the recently announced repo rate cut and the change in Loan-to-value regulations will turn the property market around," she added.
Nandago said that the FNB believes that a significant overall improvement in the property market will largely depend on higher disposable incomes through increases in real wages.
"We do not see the situation in the property market improving given the depressed economic environment, the precarious unemployment situation, and anemic consumer spending," she said.