By Emma Kakololo
WINDHOEK
The skyrocketing prices for residential properties have prompted the Government to prepare a Valuer’s Act, which many Namibians hope will solve the current price madness.
The Bank of Namibia (BoN) recently painted a grim picture in the banking market due to the alarming pace at which residential property prices are rising in Windhoek and the serious repercussion that might follow should this housing bubble burst.
However, many in the real estate market argue that the bubble has already burst and that many are losing their properties because of inability to keep up with their mortgage bonds.
Statistics released by the First National Bank show an increase of residential property prices in Windhoek’s suburbs of 13.25 percent and 18.72 percent in 2005 and 2006 respectively.
These increases, said the BoN, are very high given the low level of annual inflation of 2.2 percent (2005) and 5.1 percent (2006) respectively.
Owner of Capital Properties, Andy Cloete says it is about time that the Government implements a standard system for valuations.
“We need this formula to value houses so that they are fairly priced. You would find that different banks valuate the same house differently. For example, one bank would value it at N$500???_?_’???_?’???_???