A Quantitative Investigation into Determinants of House Prices in Namibia

Abstract

The purpose of this paper was to empirically examine determinants of property or house prices in Namibia. Results show that it is only land supply that has a significant impact on property or house prices in Namibia. Government intervention is needed to stem the increasing house prices in Namibia. First, it should be made mandatory for a serviced plot in town to remain idle only for a period of up to 5 years beyond which the piece of land can be taken over by a local authority. Second, government should pump more funds via local authorities so that huge amount of virgin lands in local authority areas can be serviced. Thirdly, the construction industry should be properly regulated to prevent buyers from being exposed to high prices of houses by builders who charge anything, in labor cost, as a proportion of total cost.

Keywords: House Prices, Determinants, Namibia, Quantitative Investigation.