KBA-House Price Index Shows Demand for Apartments Down 63 percent
By Estate Cloud - over 2 years ago - Kenya
The latest KBA house price index shows that apartments accounted for approximately 43 per cent of transaction activity in the third quarter of 2020.
Maisonettes and bungalows accounted for 21 per cent and 33 per cent respectively, while townhouses accounted for 2 per cent of the concluded sales in the third quarter. However, the overall demand for apartments shrank by 63 per cent, while demand for bungalows and maisonettes expanded by 9 per cent and 72 per cent, respectively.
Region Two which consists of Thindigua (Kiambu Road), Kiambu, South B, South C, Kabete, Komarock, Imara Daima, Membley, Buruburu, Rongai, Waiyaki Way (Uthiru, Regen, Kinoo, Kikuyu), Mbagathi road, Ngong Road, Langata, accounted for the most housing activity during the period at 53 percent.
Transactions are still happening in low volumes reinforcing the earlier observations of buyers’ search for affordability.
The KBA-House price index which is based on the moving base, stood at 117.11 in quarter three compared to 117.20 in the prior period, indicating a slowing down of the drop which began in the fourth quarter of 2018 when the index stood at 127.0, its highest since inception in 2013.
KBA said that house price growth is flattening off, a sign that the market is now characterized by stability albeit still in the negative territory.
Housing price fundamentals, just like prices of non-house goods, substantially depend on the state of the economy according to the KBA-House price index.