The average house price increased marginally by 1.10 per cent during the first three months of the year compared to the 1.58 per cent rise during Q4 of 2016.
The price of residential houses stabilised as demand softened during the first quarter of the year.
Kenya Bankers Association (KBA) Housing Price Index released Thursday showed that the average house price increased marginally by 1.10 per cent during the first three months of the year compared to the 1.58 per cent rise during Q4 of 2016.
“Whereas this supports the observation that house prices are broadly stable, it is increasingly becoming evident that prices are softening.”
“The house prices evolution since the third quarter of 2016 represents a downward trend, being a reversal of the rising trend that prevailed from the preceding three quarters starting from the fourth quarter of 2015,” said the KBA housing index.
The index showed that supply and demand dynamics have equally influenced the general house prices trend, the key driver of the softening seen during the Q1 of 2017 and the preceding two quarters leaning more towards market demand conditions.
“Demand has somewhat been suppressed principally because of reduced lending by commercial banks following the enactment of interest capping law in the last quarter of 2016,” the index stated.
Apartments accounted for 75.72 per cent of the total number of units sold in Q1 of 2017.
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