Nairobi — Apartment owners are increasingly becoming flexible in their asking prices as more buyers become price sensitive due to the challenging economic environment, a new report shows.

According to the Hass Property price index Q3, the price sensitivity in the apartment market has seen most owners negotiate prices to close on sales.

The index noted that the apartment sales market stagnated during the quarter and this saw prices fall by 0.3 per cent.

"We are in a price-sensitive market and owners are taking the hit to sustain sales. Despite this, projects that have excessive demand are increasing prices in line with inflation," said Sakina Hassanali, Head of Development Consulting and Research at HassConsult.

Apartments prices in Riverside dropped by 4 per cent over the quarter while apartments in Thika dropped by 3 percent.

On the rental front, prices across the board declined by 0.2 per cent reflecting the tough economic environment.

On the upside, rent improved in satellite towns led by houses in Ruiru which recorded a 6.4 per cent increase in asking rents while in the suburbs Donholm houses recorded the best growth at 2.6 per cent.

Meanwhile, HassConsult notes that house price movements were strongest for the detached housing segment, which is made up of townhouses and villas, in upper suburbs since there is still demand for units with ample spacing.

In the suburbs, houses in Loresho performed best posting a 3.6 per cent increase over the quarter followed by Langata which posted a 3.4 per increase.

For the towns, Juja houses saw prices increase by 5.1 per cent over the same period, followed by Nong with prices increasing by 4.7 per cent.