Listed real estate developer-cum-lender HF Group #ticker:HFCK Monday announced a 30 percent discount on 700 houses. The move reflects the tough going in the market.
HF Group said investors have two months to buy the properties located in 11 HF projects (eight completed projects and three nearing completion). All the houses on offer are located in Nairobi.
Group chief executive officer Robert Kibaara said the ‘Shika Nyumba na HF’ campaign running between March 4 to May 31, 2019 will see the group offer for sale its own units as well as properties belonging to other real estate developers funded by the home loans firm.
“The Shika Nyumba promotion makes existing properties more affordable for local and diaspora buyers. It is an opportunity for cash buyers as well as those seeking to take a mortgage funded by HF,” said Mr Kabaara.
Those with existing contracts will not benefit.
The property market has slowed down especially after the 2017 General Election, coupled with a prolonged drought that saw inflation hit a high of 8.07 per cent.
It last year witnessed a slow return to normalcy with inflation dropping to 4.7 per cent.
The tough economy saw Kenyans shun buying houses to concentrate on funding essential items such as purchase of food, catering for transport and paying school fees leaving them with a little to spare.
The situation was worsened by introduction of interest rate caps that saw lenders freeze lending to individuals deemed risky as well as dump long-term lending.
The caps tie both long and short-term loans to the bi-monthly central bank rate.
Properties on offer include Komarock Heights Apartments, Kahawa Downs Apartments in Kahawa Sukari, Evergreen Valley maisonettes and apartments in Utawala, Koibatek Apartments, Sigona Heights Maisonettes, Woodley Springs Apartments and Warira Court.
HF’s ongoing developments include Richland Pointe that has 248 apartments, Precious Gardens Phase II (152 apartments) set for completions in September 2019 and 80-unit Clay City Phase IA expected to be ready by January 2020.