FNB releases Q2 housing price index

The Namibian housing market maintained its upward momentum in the second quarter of 2025, according to the latest FNB House Price Index (HPI). The index recorded a 12-month average growth of 7.7%, a slight slowdown from the 9.4% growth in the first quarter of 2025, but significantly higher than the 1.7% growth observed in 2Q24. This reflects a continued rise in housing prices since the market emerged from contraction in early 2023.By segment, the small housing segment saw growth of 5.9%, while the medium segment increased modestly by 0.2%. Large and luxury segments recorded declines of -6.6% and -32.5% respectively, highlighting weaker demand at the high end of the market. Regionally, the southern region led price growth at 14.6%, followed closely by the northern region at 14.4%, and the central region at 6.0%. The coastal region was the only area to experience a slight contraction of -0.3%. Overall, the national average house price rose to N$1 360 664, compared with N$1 345 270 in 1Q25 and N$1 263 673 in 2Q24.Transaction volumes also strengthened, with 12-month average growth rising to 15.5% in 2Q25, up from 10.0% in 1Q25 and reversing the 17.7% contraction from a year earlier. Regionally, the coastal area showed the strongest growth in volumes at 35.6%, while the central, northern, and southern regions grew by 12.5%, 8.1%, and 16.7% respectively. It is important to note that the southern region remains a thin market, recording only 19 transactions out of a national total of 828.Segment-levelsSegment-level volume growth revealed strong performance in the large and luxury segments, both recording 100% growth on a 12-month rolling basis. However, these figures are influenced by very low transaction numbers: the luxury segment recorded just six sales, while the small, medium, and large segments saw averages of 545, 182, and 28 transactions, respectively. The data highlights that while high-end property activity remains limited, smaller and mid-range homes continue to drive market momentum.Mortgage credit uptake remains subdued despite rising property activity. In July 2025, household mortgage growth was 0.2% month-on-month, slightly down from 0.3% in June, but showed a modest year-on-year increase of 0.8%.The Bank of Namibia’s directive for commercial banks to reduce lending spreads by 25 basis points is expected to ease borrowing costs, potentially stimulating mortgage market participation. With the repo rate at 6.75%, more consumers may gain access to finance, supporting long-term demand.PricesLooking regionally, the central area remains robust, with house price growth of 6.0% in 2Q25 and transaction volumes rising 12.5%. The central region holds the largest share of housing activity at 40%, although this is slightly below the 47.1% share recorded in 2Q24.In contrast, the coastal region experienced a minor price contraction of -0.3%, but transaction volumes surged by 35.0%, indicating strong market interest despite slightly lower prices. Northern region prices grew 14.4% with volumes up 8.1%, while the southern region posted 14.6% growth in prices and 16.7% in volumes, although transaction numbers remain very low.Residential plot sales showed a contraction of -13.1% nationally in 2Q25, driven by weaker activity in the central, northern and southern regions. The coastal region bucked this trend with 12.8% growth in plot sales. Supply-side constraints, including the limited availability of serviced land, continue to affect the market. The government has indicated that approximately 1 064 plots are partially or fully serviced, with another 1 007 expected in the northern region following formalisation of informal settlements.Government initiatives, including a pension-backed home loan scheme allowing members to use up to one-third of their pension savings for home purchase or improvement, are expected to enhance financing options, particularly for households that may not qualify for traditional mortgages. These measures, along with efforts to accelerate land servicing, should improve access to housing across the country.Overall, the Namibian residential property market shows resilience with sustained price growth and rising transaction volumes. Continued local investment in rental housing, increasing foreign interest, and easing borrowing costs suggest a positive outlook for the sector. With demand expected to remain strong and supply gradually improving, the housing market is well-positioned to maintain its upward trajectory throughout the remainder of 2025.

FNB releases Q2 housing price index

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Republikein 2025-09-15

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FNB releases Q2 housing price index

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Republikein 2025-09-15

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