House prices stable on wealthy Kenyans

A “For Sale” sign stands in front of a house. If you think you have found the perfect property to meet your needs, there are a few ways to decide if you are getting the best possible deal. Photo/AFP

By JAMES KARIUKI
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Summary

• The Kenya Bankers Association - House Price Index (KBAHPI) shows overall house prices contracted by 0.08 per cent in the third quarter, a marginal improvement from the 0.20 per cent contraction in the second quarter of 2020.
• Over the period, demand for apartments shrank by 63 per cent, while demand for bungalows and maisonettes expanded by 9 per cent and 72 per cent, respectively despite an overall subdued price trend.

Wealthy Kenyans defied the economic fallout from the Covid-19 pandemic to snap up high-end houses in the third quarter of this year, a new survey by the Kenya Bankers Association(KBA) shows, helping to stabilise prices in the real estate sector.

The Kenya Bankers Association - House Price Index (KBAHPI) shows overall house prices contracted by 0.08 per cent in the third quarter, a marginal improvement from the 0.20 per cent contraction in the second quarter of 2020.

“The relatively stronger demand at the top end of the market more than offset the decline in the lower segment, hence providing support for the house price stability” the survey report said.

Over the period, demand for apartments shrank by 63 per cent, while demand for bungalows and maisonettes expanded by 9 per cent and 72 per cent, respectively despite an overall subdued price trend.

“As we have argued before, during periods of a sharp contraction in economic activity house prices either remain flat or decline slightly.

“The fact that the decline is not as sharp is attributable to the slow response of both buyers and sellers in response to the declining economic prospects” KBA said.

Homebuyers’ preferences continued to be dominated by apartments. The apartments accounted for approximately 43 per cent of house purchases between July and September while maisonettes and bungalows accounted for 21 per cent and 33 per cent respectively. Townhouses accounted for 2 per cent of the concluded sales in the third quarter.

An overall 53 per cent of all types housing purchases were made in Athi River, Mlolongo, Mavoko, Nakuru, Ngong, Ruaka, Syokimau, Embakasi, Kahawa Wendani, Thika, Mtwapa, and Utange.

Others areas that were popular with apartment purchasers in the third quarter were Kitengela, Kiembeni, Nyeri, Likoni, Eldoret, Ruiru, Kilifi,Thika Road’s Kasarani, Roysambu and Rwaka areas, Meru and Bungoma.

The second highest purchases of all types of housing in the third quarter was recorded in 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 and Lang’ata.

Wealthy Kenyans defied the economic fallout from the Covid-19 pandemic to snap up high-end houses in the third quarter of this year, a new survey by the Kenya Bankers Association(KBA) shows, helping to stabilise prices in the real estate sector.

The Kenya Bankers Association - House Price Index (KBAHPI) shows overall house prices contracted by 0.08 per cent in the third quarter, a marginal improvement from the 0.20 per cent contraction in the second quarter of 2020.

“The relatively stronger demand at the top end of the market more than offset the decline in the lower segment, hence providing support for the house price stability” the survey report said.

Over the period, demand for apartments shrank by 63 per cent, while demand for bungalows and maisonettes expanded by 9 per cent and 72 per cent, respectively despite an overall subdued price trend.

“As we have argued before, during periods of a sharp contraction in economic activity house prices either remain flat or decline slightly.

“The fact that the decline is not as sharp is attributable to the slow response of both buyers and sellers in response to the declining economic prospects” KBA said.

Homebuyers’ preferences continued to be dominated by apartments. The apartments accounted for approximately 43 per cent of house purchases between July and September while maisonettes and bungalows accounted for 21 per cent and 33 per cent respectively. Townhouses accounted for 2 per cent of the concluded sales in the third quarter.

An overall 53 per cent of all types housing purchases were made in Athi River, Mlolongo, Mavoko, Nakuru, Ngong, Ruaka, Syokimau, Embakasi, Kahawa Wendani, Thika, Mtwapa, and Utange.

Others areas that were popular with apartment purchasers in the third quarter were Kitengela, Kiembeni, Nyeri, Likoni, Eldoret, Ruiru, Kilifi,Thika Road’s Kasarani, Roysambu and Rwaka areas, Meru and Bungoma.

The second highest purchases of all types of housing in the third quarter was recorded in 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 and Lang’ata.