The Municipality of Walvis Bay is demanding that estate agents comply with outdoor advertising regulations, a move agents say could increase their operating costs.
In a notice issued last week, the municipality advises estate agents to apply for an annual outdoor advertising permit specifically for the placement of “For Sale,” “On Show,” and similar property advertising boards within the municipal area.
The municipality says it has noticed an increasing number of illegal real estate advertising boards erected at and around Walvis Bay.
According to a public notice issued by Erikson Mwanyekange, general manager for community and economic development, the municipality says all outdoor advertising structures must be approved before being erected.
“All outdoor advertising agencies, businesses and members of the public intending to erect an advertising structure must obtain prior approval from the municipal council,” Mwanyekange says.
The annual outdoor advertising permit will come at a fee of N$1 602.42 per estate agent.
Estate agents at Walvis Bay have warned that the municipality’s enforcement of rules on property advertising boards could increase the cost of selling properties, with some saying the expense will be passed on to clients.
Illeni Mukete of TNT Properties says the requirement will increase operating costs.
He says estate agents were not consulted before the municipality enforced compliance.
“The fee is hefty. There were no consultations because it is optional. Not every agent prefers to use billboards and signs as a form of advertising. It is commonly known to be expensive,” Mukete says.
He says agencies that use physical advertising boards will be affected, adding that the costs will be passed on to clients.
“Definitely, the listing price by the agent will be very high than what the owner is selling to cover such costs and taxes,” Mukete says.
Lydia Fernandes of LA Properties also questions the permit fee, saying she does not consider it reasonable.
Fernandes says the municipality did not consult estate agents before issuing the notice.
She says her agency no longer relies heavily on property advertising boards.
“We don’t put up many boards anymore because most of our marketing is done online.”
Another estate agent, who spoke on condition of anonymity, says the permit requirement will affect how agencies structure their pricing.
The agent says some agencies may reduce the use of physical boards to avoid additional costs.
“It forces you to rethink whether you even use boards at all. If you do, it becomes part of your overheads, and those costs do not disappear,” the agent says.
The agent adds that the impact will not be limited to agencies alone.
“At the end of the day, everything is linked to the client. Whether people like it or not, those costs are recovered somewhere in the transaction,” the agent says.
