Connect with us

Markets

Economic Uncertainty Filters Into Lagos House Prices

Published

on

Lagos-NEW
  • Economic Uncertainty Filters Into Lagos House Prices

As the Nigerian economy continues to suffer one of its worst recessions in recent history, transaction in the Lagos real estate sector remain slow last year culminating in either house price falls or a rapid deceleration of house price rises.

According to the Nigeria Bureau of Statistics (NBS), the Gross Domestic Product (GDP) recorded negative growth in the first two quarters of the year at -0.36 per cent (q1) and -2.06 per cent (q2) respectively and by the third quarter GDP had fallen by -2.24 per cent.

In the latest Lagos House Price Index – 2017 released by Residential Auctions Company (RAC), housing markets is losing momentum in highbrow residential locations within the selected areas. For instance, Lagos Island sub-locations of Ikoyi, Victoria Island and Lekki Phase 1, house prices moved in different directions in 2016. In Ikoyi, asking house prices were down by -12.29 per cent. Also in Victoria Island, asking house prices fell by -10.62 per cent.

The drop in asking house prices in both sub- locations can simply be attributed to the excess supply of houses on the market for sale and waning demand for housing, due to few buyers, bringing about a low volume of transaction.

However, in Lekki Phase 1, asking house prices rose by 15.53 per cent due to renewed interest and demand for houses in this location. Overall, average house prices in Lagos Island house fell for the second year running in what could be termed to be a market correction of prices.

The last 12 months saw asking house prices fall in this market by -5.58 per cent as the average house price for a four/five-bedroom house was N172, 214, 772. Despite the -5.58 per cent drop for 2016, it was nothing compared to the drastic drop of the preceding year 2015 of -25 per cent and shows that the Lagos Island housing market is showing some form of resilience and come back.

In Lagos Mainland, asking house prices varied across different sub-locations as some locations saw drops in asking prices and others saw a rise in asking house prices.

Overall, average house prices in Lagos Mainland increased by 2.33 per cent as the average house price for a four/five-bedroom house was N75,509, 463. The steep increase keeping in line with the increase recorded for the preceding year 2015 at 20per cent.

“The reason for the sustained growth in Lagos Mainland house prices can be attributed to the low supply of houses particularly new housing units in this geographical location and sustained demand,” according RAC Managing Director, Rotimi Akinlose.

“There is no better time particularly for investors seeking long term capital appreciation of assets to invest in the real estate market as we anticipate to see asking prices rising this year.”

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

Continue Reading
Comments

Crude Oil

Oil Prices Continue to Slide: Drops Over 1% Amid Surging U.S. Stockpiles

Published

on

Crude Oil

Amidst growing concerns over surging U.S. stockpiles and indications of static output policies from major oil-producing nations, oil prices declined for a second consecutive day by 1% on Wednesday.

Brent crude oil, against which the Nigerian oil price is measured, shed 97 cents or 1.12% to $85.28 per barrel.

Similarly, U.S. West Texas Intermediate (WTI) crude slumped by 93 cents or a 1.14% fall to close at $80.69.

The recent downtrend in oil prices comes after they reached their highest level since October last week.

However, ongoing concerns regarding burgeoning U.S. crude inventories and uncertainties surrounding potential inaction by the OPEC+ group in their forthcoming technical meeting have exacerbated the downward momentum.

Market analysts attribute the decline to expectations of minimal adjustments to oil output policies by the Organization of the Petroleum Exporting Countries (OPEC) and its allies, known collectively as OPEC+, until a full ministerial meeting scheduled for June.

In addition to concerns about excess supply, the market’s attention is also focused on the impending release of official government data on U.S. crude inventories, scheduled for Wednesday at 10:30 a.m. EDT (1430 GMT).

Analysts are keenly observing OPEC members for any signals of deviation from their production quotas, suggesting further volatility may lie ahead in the oil market.

Continue Reading

Energy

Nigeria Targets $5bn Investments in Oil and Gas Sector, Says Government

Published

on

Crude Oil - Investors King

Nigeria is setting its sights on attracting $5 billion worth of investments in its oil and gas sector, according to statements made by government officials during an oil and gas sector retreat in Abuja.

During the retreat organized by the Federal Ministry of Petroleum Resources, Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, explained the importance of ramping up crude oil production and creating an environment conducive to attracting investments.

He highlighted the need to work closely with agencies like the Nigerian National Petroleum Company Limited (NNPCL) to achieve these goals.

Lokpobiri acknowledged the challenges posed by issues such as insecurity and pipeline vandalism but expressed confidence in the government’s ability to tackle them effectively.

He stressed the necessity of a globally competitive regulatory framework to encourage investment in the sector.

The minister’s remarks were echoed by Mele Kyari, the Group Chief Executive Officer of NNPCL, who spoke at the 2024 Strategic Women in Energy, Oil, and Gas Leadership Summit.

Kyari stressed the critical role of energy in driving economic growth and development and explained that Nigeria still faces challenges in providing stable electricity to its citizens.

Kyari outlined NNPCL’s vision for the future, which includes increasing crude oil production, expanding refining capacity, and growing the company’s retail network.

He highlighted the importance of leveraging Nigeria’s vast gas resources and optimizing dividend payouts to shareholders.

Overall, the government’s commitment to attracting $5 billion in investments reflects its determination to revitalize the oil and gas sector and drive economic growth in Nigeria.

Continue Reading

Commodities

Palm Oil Rebounds on Upbeat Malaysian Exports Amid Indonesian Supply Concerns

Published

on

Palm Oil - Investors King

Palm oil prices rebounded from a two-day decline on reports that Malaysian exports will be robust this month despite concerns over potential supply disruptions from Indonesia, the world’s largest palm oil exporter.

The market saw a significant surge as Malaysian export figures for the current month painted a promising picture.

Senior trader David Ng from IcebergX Sdn. in Kuala Lumpur attributed the morning’s gains to Malaysia’s strong export performance, with shipments climbing by a notable 14% during March 1-25 compared to the previous month.

Increased demand from key regions like Africa, India, and the Middle East contributed to this impressive growth, as reported by Intertek Testing Services.

However, amidst this positivity, investors are closely monitoring developments in Indonesia. The Indonesian government’s contemplation of revising its domestic market obligation policy, potentially linking it to production rather than exports, has stirred market concerns.

Edy Priyono, a deputy at the presidential staff office in Jakarta, indicated that this proposed shift aims to mitigate vulnerability to fluctuations in export demand.

Yet, it could potentially constrain supply availability from Indonesia in the future to stabilize domestic prices.

This uncertainty surrounding Indonesian policies has added a layer of complexity to palm oil market dynamics, prompting investors to react cautiously despite Malaysia’s promising export performance.

The prospect of Indonesian supply disruptions underscores the delicacy of global palm oil supply chains and their susceptibility to geopolitical and regulatory factors.

As the market navigates these developments, stakeholders remain attentive to both export data from Malaysia and policy shifts in Indonesia, recognizing their significant impact on palm oil prices and market stability.

Continue Reading
Advertisement




Advertisement
Advertisement
Advertisement

Trending