Trade minister Lucia Iipumbu this week tabled the Property Practitioners Bill that aims to provide protection to consumers within the property sector.
The proposed legislation aims to transform the domestic property market by creating an appropriate institutional and legal framework.
This includes certification for auctioneers, developers and managers, focusing on protecting consumers of agency services, including traditional estate agents.
“It is imperative that adequate protection be accorded to consumers when dealing with their most valuable assets – their property – and this is a fundamental right that is accorded protection under Article 16 of our Constitution,” said Iipumbu in the National Assembly on Tuesday.
The bill that was tabled for consideration and adoption is a new law, set to repeal the Estate Agents Act 112 of 1976.
Its main purpose is to establish the Property Practitioners Regulatory Authority, which will replace the Namibia Estate Agents Board.
It aims to regulate the affairs of all property practitioners, allow for transformation in the property sector, and to provide for consumer protection.
Iipumbu noted there are limitations in the existing legal framework for the effective regulation of the industry.
“It is imperative that the legal and institutional framework be tested against current and future needs, and comparisons be made with the developments taking place regionally and internationally to establish the relevance and effectiveness of the proposed law,” implored the minister.
The property practitioners’ bill expands the scope of the existing Act to include key stakeholders in the property industry, including estate agents, developers, auctioneers and managers.
Furthermore, the bill aims to protect consumers against money theft from property practitioners by issuing a fidelity fund certificate.
If a practitioner steals money, consumers can claim it from the fidelity fund.
The bill also requires transferring attorneys or conveyancers to verify a practitioner’s fidelity fund certificate before any transaction.
According to the most recent FNB housing price index report, transaction volumes remained contractionary for the sixth consecutive quarter for the fourth quarter of 2023 at a 12-month average growth of -19.1% at the end of the quarter, from –27.7% in the third quarter of 2023 and -17.9% in Q4-2022.
From a segment perspective, the contraction was observed in the small (-29.5%) and medium (-31.3%) segments, while the large and luxury segments recorded a 20.0% and 0.0% growth rate, respectively.
This signals that buying activity in the residential property market remains broadly subdued across the board.
The subdued buying activity was aligned to the elevated interest rate and inflation environment, which has weighed on consumer health in the context of high levels of indebtedness among households, which currently stands at 86%.
This limits the ability for consumers to spend on assets such as housing, as the focus is on supplementing disposable income, which has come under severe pressure in the prevailing economic environment.
“The overall national house price now stands at N$1 214 674 during Q4-2023, slightly lower than N$1218 086 in Q3-2023, but higher than N$1 196 569 over the corresponding period in 2022.
The average prices for the central, coastal, northern and southern regions stand at N$1 550000, N$1 398 000, N$864 000 and N$881 000, respectively,” reads the FNB report.