The Kenya Bankers Association (KBA) on Monday, November 9, published the Housing Price Index (HBI) report for the third quarter of 2020 (Q3 2020).
The index indicates shifts in price changes for houses in various estates in Nairobi, its outskirts and other counties clustering them into three regions based on price range.
KBA stated that a contraction of 0.08% was recorded for the third quarter, following a significant contraction of 0.20% and 0.51% in the second and first quarters.
Although this indicated that houses prices growth was stabilising amid weakened demand and supply, the association stated that the growth remained in the negative territory.Motorists drive along Ngong Road in Nairobi, on Wednesday, March 4, 2020Simon KiraguKenyans.co.ke
"The observed contraction is on account of the challenging economic environment on the back of the Covid-19 pandemic, which has significantly affected both the demand and supply side of the market," KBA stated.
The report broke down changes in each regional cluster based on the three house types; apartments, bungalows and maisonettes. Demand for apartments shrank by 63% while the demand for bungalows and maisonettes expanded by 9% and 72% respectively.
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 103.4 to 102.57, bungalows dropped from 101.22 to 101.11 and mansions fell from 104.85 to 104.45.
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 dropped from 102.10 to 101.80, bungalows fell from 100.57 to 100.53 and mansions from 102.14 to 101.66.
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, and Nyari.
For this cluster, apartment prices rose on the index from 99.91 to 101.02, bungalows dropped from 104.29 to 104.21, and mansions from 103.86 to 103.84.
Homebuyers’ preferences continued to be dominated by apartments and mainly concentrated in Region 1. This further supports hedonic price estimates of the shift in buyers’ preference to reflect their affordability.
KBA stated that in choosing a house, buyers consider a variety of attributes, including the plinth area, number of rooms, type of house and location of the houses.File image of residential housesFile
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