Staff Reporter
HOUSE prices are currently experiencing a sustained increase due to rising demand and supply-side pressures in the residential property market, which are likely to keep housing costs elevated and contribute to stickier inflation within the housing and utilities component of the consumer basket.
This is according to FNB Namibia Market Research Manager Mandisa Van Wyk, who explained that the FNB House Price Index grew by 8.9% on a 12-month average basis in 3Q26, accelerating from 7.4% in 2Q26 and well above the 5.9% recorded in 3Q25.
“From a regional perspective, the central region continued to outperform, with price growth increasing to 11.4%, while the northern region recorded modest growth of 1.6%. By contrast, the coastal region moderated to 3.7%, and the southern region remained under pressure, with prices contracting by 3.4% in 3Q26. Across market segments, performance was similarly uneven,” Van Wyk said.
She added that the small segment recorded growth of 3.9%, while the medium, large and luxury segments grew by 1.9%, 3.6% and 6.2%, respectively.
The overall national average house price rose to N$1,502,539 at the end of 3Q26, up from N$1,461,215 in 2Q26 and well above the N$1,380,042 recorded in 3Q25.
On a 12-month moving average basis, regional prices for the central, coastal, northern and southern regions stood at N$1,936,000, N$1,532,000, N$991,000 and N$892,000, respectively.
Transaction volumes continued to weaken in 3Q26, contracting by 3.0% on a 12-month moving average basis, compared to growth of 2.8% in 2Q26 and 18.4% in 3Q25.
Regionally, on a 12-month moving average basis, volume growth slowed to 3.9% in the central region, stagnated at 0.0% in the coastal region, and contracted by 9.5% and 25.0% in the northern and southern regions, respectively.
Van Wyk said that while the central region continued to underpin overall market activity, transaction levels in the southern region remained exceptionally low, accounting for just 19 of the 841 property transfers recorded nationally during the quarter.
“Consequently, trends in the southern region should be interpreted with caution, as the small transaction base leaves the data particularly susceptible to volatility and year-on-year distortions. Namibia’s residential property market remains characterised by rising house prices and weakening transaction activity. Persistent supply constraints, including limited housing stock and slow land servicing, continue to support property values, while affordability pressures are increasingly weighing on demand. Higher inflation, fuelled in part by ongoing geopolitical tensions, has eroded household disposable income, reducing the capacity of many consumers to enter the housing market,” Van Wyk said.
Mortgage credit growth improved to 2.8% y/y in August 2026, signalling some resilience in housing demand, but remains relatively subdued by historical standards.
“Looking ahead, house prices are likely to remain supported by ongoing supply shortages and limited serviced land availability. However, elevated financing costs, rising living expenses and affordability constraints are expected to keep transaction volumes subdued. As a result, the housing market is likely to remain characterised by firm price growth, weak turnover and increasing barriers to home ownership until meaningful improvements in land servicing, housing delivery and household income growth materialise,” Van Wyk concluded.
Picture for illustrative purposes only. Photo: Pexels
