Chamwe Kaira
The FNB House Price Index recorded a 12-month average growth rate of 5.9% in the third quarter, down from 7.7% in the second quarter and 7.0% in the same period last year.
FNB Namibia said on Monday that despite the slowdown, the index remains resilient since exiting negative territory early this year.
Price growth across the small, medium, large, and luxury segments stood at 4.4%, 0.3%, 1.9%, and -23.9%, respectively. Regionally, all areas recorded growth in the third quarter.
The central region rose by 4.8%, the coastal by 1.2%, the northern by 10.9%, and the southern by 8.5%, showing broad-based momentum across the country, according to FNB.
The national average house price reached N$1.38 million at the end of the third quarter, up from N$1.36 million in the second quarter and N$1.30 million a year ago. The 12-month average house prices for the central, coastal, northern, and southern regions stand at N$1.73 million, N$1.47 million, N$975 000 and N$923 000, respectively.
Transaction volumes grew by 18.4% in the third quarter on a 12-month average basis, compared to 15.5% in the second quarter and rebounding from -8.2% a year earlier.
“This upward momentum in volume growth has remained resilient for three consecutive quarters since the fourth quarter of last year,” FNB said.
Regionally, volumes in the central, coastal, northern, and southern regions grew by 12.1%, 41.5%, 11.8%, and 33.3%, respectively, during the second quarter. The southern region recorded only 27 transactions out of the total 892.
By segment, volume growth on a 12-month average increased by 14.5% for small homes, 20.8% for medium homes, and 83.3% for large homes and dropped by 50% for luxury homes.
“It should be noted that the luxury segment sales only recorded three transactions, while the small, medium, and large segments had transaction volumes of 642, 209, and 38, respectively, in the third quarter,” FNB said.
FNB said the resilient demand in the residential property market continues to show, with rising housing transaction volumes despite slower price growth.
On the lending side, household mortgage credit growth remains subdued, at 0.6% year-on-year in September 2025, down from 0.8% in August.
“This highlights the crowding out of a larger portion of borrowers, as sustained buying activity appears to be driven by a smaller segment of consumers with sufficient financial resources. The broader population continues to face affordability constraints, while foreign appetite for residential property and increased local investment in rental housing remain key drivers of market activity,” FNB said.
In response to slower GDP growth of 1.6% in the second quarter, down from 2.8% in the first quarter and 3.3% a year ago, the Bank of Namibia reduced the repo rate by 25 basis points to 6.50% in October.
“This aims to stimulate growth in the economy as inflation also eased, averaging 3.6% in September 2025 from 4.6% in the same period last year. These measures should see some reprieve to borrowers; however, the magnitude of the impact may be limited as unemployment rates remain high and wage growth is weak,” FNB said.
FNB expects the House Price Index growth to moderate further after two quarters of easing. The bank said transaction volumes continue to outperform, supported by strong housing demand despite limited supply.
“To improve housing market access, proactive municipal efforts to accelerate land servicing could significantly expand property ownership opportunities for a wider segment of the population,” FNB said.
Caption
FNB Namibia said proactive municipal efforts to accelerate land servicing could significantly expand property ownership opportunities for a wider segment of the population.
- Photo: Contributed
