Windhoek property prices go up again

PROPERTY prices in Windhoek are set to go up at the end of the month.The Windhoek City Council decided at its monthly meeting on Wednesday that the price of all unsold erven be increased by 8,1 per cent.

This is only a fraction lower than the previous year, when property prices went up by 8,53 per cent. The City determines escalating erven prices based on the average interest earned in the preceding financial year and the escalation of development costs for the same period – usually in November each year.Should the average be lower than the interest earned, the average of the interest earned for that financial year will be the adjustment.During the 2004-05 financial year, the City earned interest of 7,7 per cent whereas development costs for the same period increased by 8,33 per cent, representing an average increase of 8,1 per cent.The City has resolved, however, not to increase the upset prices for business-zoned erven in Okuryangava and Goreangab in order to promote sales.The erven have been lying unsold for a number of years now.The City also plans to market newly developed erven in Otjomuise Extensions 8 and 9 this year.The upset prices for these erven will also remain unchanged from last year.Although not opposing the increase, DTA councillor Ilme Schneider remarked that she found property prices were becoming unaffordable to the majority of the City’s residents.This year’s increase is lower than has been the case in recent years, however.In 2003, erven prices went up by 12,53 per cent, in 2002 by 10,8 per cent, in 2001 by 9,7 per cent and in 2002 by 9,95 per cent.The City determines escalating erven prices based on the average interest earned in the preceding financial year and the escalation of development costs for the same period – usually in November each year.Should the average be lower than the interest earned, the average of the interest earned for that financial year will be the adjustment.During the 2004-05 financial year, the City earned interest of 7,7 per cent whereas development costs for the same period increased by 8,33 per cent, representing an average increase of 8,1 per cent.The City has resolved, however, not to increase the upset prices for business-zoned erven in Okuryangava and Goreangab in order to promote sales.The erven have been lying unsold for a number of years now.The City also plans to market newly developed erven in Otjomuise Extensions 8 and 9 this year.The upset prices for these erven will also remain unchanged from last year.Although not opposing the increase, DTA councillor Ilme Schneider remarked that she found property prices were becoming unaffordable to the majority of the City’s residents.This year’s increase is lower than has been the case in recent years, however.In 2003, erven prices went up by 12,53 per cent, in 2002 by 10,8 per cent, in 2001 by 9,7 per cent and in 2002 by 9,95 per cent.