The Kenya Bankers Association (KBA) on Monday, August 10, published the Housing Price Index (HBI) report for the second quarter of 2020.
The index tracks movements in price changes for houses in various estates in Nairobi and its outskirts among other areas, clustering them into three regions based on price range.
Overall, a contraction of 0.20% was recorded for the second quarter, following a significant contraction of 0.51% in the first quarter.
The broader challenges of a weak economy were cited as a key contributor to the steady decline in house prices, with the report coming at a time when many Kenyans have experienced loss of income since the first case of Covid-19 was confirmed in Kenya.
"With demand remaining depressed, the concluded sales during the second quarter of the year represented a nearly 40% drop from the previous quarter," the report reads in part.
The report broke down changes in each regional cluster based on the three house types; apartments, bungalows and maisonettes.
The first cluster has areas including Athi River, Mlolongo, Mavoko, Nakuru, Ngong, Ruaka, Syokimau, Embakasi, Kahawa Wendani, Thika, Mtwapa, Utange, Kitengela, Kiembeni, Nyeri, Likoni, Eldoret, Ruiru, Kilifi,Thika Road (Kasarani, Roysambu, Ruaraka), Meru, Bungoma.
Here, apartment prices dropped on the index from 103.07 to 103.04, while bungalows fell from 101.38 to 101.22. Maisonettes, however, rose on the index, from 103.91 in the first quarter to 104.85.
The second cluster has Thindigua (Kiambu Road), Kiambu, South B, South C, Kabete, Komarock, Imara Daima, Membley, Buruburu, Rongai, Waiyaki Way (Uthiru, Regen, Kinoo, Kikuyu), Mbagathi road, Ngong Road, Langata.
For this cluster, apartment prices rose on the index from 102.03 to 102.10, as did bungalows, from 100.14 to 100.57. Maisonettes dropped from 102.35 to 102.14.
The final cluster includes upmarket estates such as Kileleshwa, Kilimani, Lavington, Westlands, Spring Valley, Riverside, Milimani (Kisumu), Milimani (Nakuru), Runda, Karen, Garden Estate, Parklands, Ridgeways, Muthaiga, Loresho, Kitisuru, Adams Arcade, Nyali, Mountain View, Nyari.
For this cluster, apartment prices dropped on the index from 99.6 to 99.91. Maisonettes also dropped from 103.92 to 103.86. The change for bungalows was not reported.
The report further observed an upward trend in the uptake of apartments, which made up 75.6% of concluded transactions for the second quarter, while masionettes and bungalows made up 12.2%.
