Hass Index Quartely and Annual Reports

 Sellers push for higher prices in flat market,as rents climb on spillover

    •Closing prices in the middle and upper market remained subdued, down by 0.7 per cent on end-2011.

    •There was a renewed push in higher asking prices, across all sectors of the market, up by 1.3 per cent overall.

    •The strongest push for higher prices was for town houses and maisonettes, with asking prices rising 3.8 per cent on the previous quarter.

    •There was also a renewed push for higher prices for standalone houses, 2.9 per cent higher than at end-2011.

   • Asking prices for apartments remained largely static, up just 0.4 per cent on end-2011.

    •Asking rentals went up across the board, with a 5 per cent increase on end-2011 for standalone house rentals, which had remained flat for all of last year

   • A 3.5 per cent rise in town house and maisonette asking rentals reversed some of the rental falls of last year

    • At the lower end of the market, with apartments, asking rentals continued to climb strongly, up 5.6 per cent on end - 2011 and 10.5 per cent on a year earlier.

 Index Highlights:

 



HassConsult today announces the results for the second quarter 2012 of its house price and rentals indices, revealing ongoing hikes in rentals against a backdrop of stable house prices.

The rise in asking rentals is now running at 10 times the rate during 2010 and 2011, when rents were close to static. From September 2009 to September 2011, the asking prices for rents rose by just 1.5 per cent in total.

However, rising property costs, inflation and - seemingly instrumentally - interest rates, have led to a sharp take-off in rents, now sustained for three successive quarters.

Since the end of September last year asking rents across all property types have risen by 7.9 per cent, with 6.6 per cent of that increase falling in the first half of 2012.

The sharpest rises are happening in apartment rents, which have risen 10.33 per cent since the climb in rents began at the end of September last year, and 8.1 per cent since the beginning of 2012.

“This surge in rental prices comes as landlords cover higher finance and other costs, and at a time when there is an increased volume of people seeking the same pool of rental properties, as potential homeowners hold off from purchasing,” said Ms Farhana Hassanali-Hashmani, Property Development Manager at HassConsult.

“It is a rise that starkly brings home the immediate impact on all Kenyans of the bottleneck caused in building and buying by pushing finance out of reach for many developers and mortgaged homeowners,” she said. Against this backdrop, Hass welcomed wholeheartedly the first move by the CBK to bring down interest rates, with the cut in the base rate last week from 18 per cent to 16.5 per cent. “The prevailing monetary policy has represented a 'closedown' for home developers in a country where we are severely short of good homes,” said Ms Hassanali-Hashmani.

However, following the decision to cut the frequency of meetings for the Monetary Policy Committee that sets interest rates, to once every two months, HassConsult urged the committee to work as rapidly as possible to bring interest rates down to a more normal and viable level by global standards.
“The hope of attracting foreign funds through top-end rates cannot be ignored, but the impact on ordinary Kenyans of hobbling the real estate industry and creating new rent surges must be considered too in the CBK's efforts to maintain exchange rates at their current levels.”

Also reporting on house prices, HassConsult revealed ongoing stability and even some small gains, with overall closure prices across all types of property rising by 0.5 per cent in the last three months, while asking prices rose by 1.3 per cent. Within this overall figure came some first signs of substantial price growth in standalone houses, where asking prices have risen by 2.7 per cent in the 12 weeks since the end of March, reversing earlier price falls.

Town houses also continued to record gains in asking prices, by another 1.1 per cent in the last three months, to make for an annual increase of 6.8 per cent – the strongest in any segment in the last year.

“With interest rates now down and expected to fall further, and much building shelved, we now forecast greater trends towards house price growth, which are likely to set in for some time before we see any relief in the current rate of rent rises,” said Ms Hassanali-Hashmani.

For more information contact:
Farhana Hassanali-Hashmani
HassConsult
020 4446914/0722 204 765/0733629 786

 

   

  SNAP SHOTS:

  •The Hass Composite Sales Index is representative of all property for sale in Kenya.
• Property values have increased by 3.10 times since 2000.
 • The index shows a property price rise of 1.3% in the last quarter and an 1.4% rise in the last year.

 

 

 

 

 SNAP SHOTS:

• The annual average is representative of the average  price of all properties offered for sale in Kenya.
 •  The average value for a property has gone from 7.1 million in December 2000 to 22.3 million in March 2012.
 •  The average value for a 4-6 bedroom property is  currently 30.5 million.
  • The average value for a 1-3 bedroom property is   currently 10.9 million.

 

 

 

 

SNAP SHOTS:

• The Mix by Year is a measure of the percentage that each type of property represents in the market.
 • In 2001, apartments took up 23.5% of the market,Town Houses took up 24.5% of the market and Stand alone houses took up 52% of the market.
  •  In 2012 however, apartments took up 43.6% of the market, Town Houses took up 26.9% of the market and Stand alone houses took up 29.5% of the market.

SNAP SHOTS:

•Stand Alone houses include houses, bungalows, cottages and villas either on their own plot or in a gated community.
• Property values for stand alone houses have increased by 3.61 times since 2001, a 2.9% rise in the last quarter and a 0.7% rise in the last year.
 • The average price for a stand alone house is currently 31.7 million up from 8.8 million in December 2000.

 

 

SNAP SHOTS:

  • Town houses include townhouses and maisonettes that are semi-detached or terraced.
  • Rental values for town houses have increased by 2.26 times since 2001, a 3.5% rise in the last quarter and a 1.2% fall in the last year. The average rental for a town house is currently Kshs. 96,516 up from Kshs. 42,688 in December 2000.

SNAP SHOTS:
•Apartments include apartments, duplexes and triplexes.
•Property values for apartments have increased by 2.23 times since 2001, a 0.4% rise in the last quarter and an 4.5% rise in the last year.
 •The average price for an apartment is currently 11.6 million up from 5.2 million in December 2000.

   

  SNAP SHOTS:

•The Hass Composite Letting Index is representative of all property for rental in Kenya
 • Rents have increased by 2.59 times since 2001
  •The index shows rents have risen by 4.4% in the last quarter but have risen by 5.5% in the last year.

 

 

 

 SNAP SHOTS:

   •The annual average is representative of the average rent of all properties offered to let in Kenya.
   • The average rental for a property has gone from Kshs. 38,516 in December 2000 to  Kshs. 99,885 in March 2012.
   •The average rent for a 4-6 bedroom property is currently Kshs. 143,227.
   • The average rent for a 1-3 bedroom property is currently Kshs. 58,877.

 

 

 

 

 SNAP SHOTS:

• The Mix by Year is a measure of the percentage that each type of property represents in the market.
  • In 2001, apartments took up 45.3% of the market, Town Houses took up 20.5% of the market and Stand alone houses took up 34.1% of the market.
    •In 2012, apartments took up 56.3% of the market, Town Houses took up 19.6% of the market and Stand alone houses took up 24.1% of the market.

SNAP SHOTS:

 •Stand Alone houses include houses, bungalows, cottages and villas either on their own plot or in a gated community.

 •Rental values for stand alone houses have increased by 2.68 times since 2001, a 5% rise in the last quarter and an 6.1% rise in the last year. The average rental for a stand alone house is currently Kshs. 152,816 up from Kshs. 56,959 in December 2000.

 

SNAP SHOTS:

 • Town houses include townhouses and maisonettes that are semi-detached or terraced.

 •Rental values for town houses have increased by 2.3 times since 2001, a 2.9% rise in the last quarter and a 4.1% rise in the last year. The average rental for a town house is currently Kshs. 99,288 up from Kshs. 42,688 in December 2000.

SNAP SHOTS:
•Apartments include apartments, duplexes and triplexes.
•Rental values for apartments have increased by 2.7 times since 2001, 5.6% rise in the last quarter and a 10.5% rise in the last year. The average rent for an apartment is currently Kshs. 62,808 up from Kshs. 21,638 in December 2000.