Listed mortgage lender, HF Group, has announced a promotion to offer Kenyans a 30 per cent discount on 700 houses. The group plans to run the discount for two months with the hope that this will drive Kenyans interested in home ownership or investors to take advantage of the slashed prices.
The tough economic environment characterized by the numerous taxes, tariffs, high construction costs and the interest rate cap, has stifled the ability of many Kenyans to invest in a home of their choice due to constrained purchasing power and the access to financing.
According to HF Group CEO Robert Kibaara, the promotion dubbed ‘Shika Nyumba na HF’ campaign, will run March 4 to May 31, 2019. In the initiative, investors will be exposed to 11 HF Group propertry developments all located in Nairobi although properties from other developers funded by the firm will also be featured.
The CEO, Mr. Kibaara also said that the discount campaign is intended to make the houses more affordable for both local and foreign buyers, for cash as well as for mortgage buyers, adding that those with existing contracts will be excluded from benefiting.
The properties on offer include Kahawa Downs, Sigona Heights, Komarock Heights, Koibatek Apartments, Evergreen Valley and apartments in Utawala, Woodley Springs and Warira Court. Most of the properties under consideration are priced within a range of Ksh. 5.5 million and Ksh. 11.5 million.
CEO, Mr Kibaara… “adding that those with existing contracts will be excluded from benefiting”. If you were in the position of those who have already bought and you discover that the very same house is being sold at a discount, would you find that fair? So it was not properly priced? Put yourself in the buyers’ shoes. Buyers are intelligent human beings and they do not like to be taken as otherwise.
This same problem happened in China and the developers had to refund the buyers so as to equalize the market. Don’t antagonize the very buyers you want to get!