CHAMWE KAIRA
The FNB House Price Index grew by 7.4% on a 12-month average basis in the second quarter of this year, an increase from 7.1% observed in the first quarter of 2025 but slightly below the 7.7% recorded in the second of 2025.
Continued house price appreciation suggests that housing demand remains resilient, which is likely to sustain elevated housing costs and contribute to sticky inflation within the housing sub-category, FNB said.
Growth across market segments was varied, with the small and medium segments growth moderating to 2.6% and 2.1% respectively, while the large and luxury segments surged to 6.6% and 21.0% respectively.
From a regional perspective, the central and coastal regions’ price growth accelerated by 8.9% and 11.9% respectively, by contrast the northern and southern regions’ prices contracted by 0.7% and 5.2% respectively during the second quarter of 2026.
The overall national average house price rose to N$1 461 15 at the end of second quarter, up from N$1 440 483 in the first quarter and well above the N$1 360 664 recorded in the second quarter of 2025.
On a 12-month moving average basis, regional prices for the central, coastal, northern, and southern regions stood at N$1 877 000, N$1 576 000, N$971 000 and N$905 000, respectively.
Transaction volumes continued to lose momentum in the second quarter, with growth slowing to 2.8% on a 12-month moving average basis, down from 10.4% in the first quarter and 15.5% in the second quarter of 2025.
The slowdown in transaction volumes was broad-based across all regions. On a 12-month moving average basis, volume growth in the central, coastal, northern, and southern regions eased to 4.0%, 7.4%, 0.0%, and 0.0%, respectively, in second quarter 2026.
Transaction volumes in the southern region, however, remain exceptionally low, with only 23 transactions recorded out of a national total of 756 during the quarter.
As a result, trends in the region should be interpreted with caution, given the heightened susceptibility to statistical volatility arising from a small transaction base.
From a market segment perspective, transaction volume growth remained uneven in the second quarter.
The Central House Price Index accelerated to 8.9% in the second quarter on a 12-month average, up from 7.6% growth recorded in the first quarter and well above the 6% growth recorded in the second quarter of 2025.
The large and luxury segments recorded average transaction volumes of just 40 and 6 properties, respectively, compared to 498 transactions in the small segment and 213 in the medium segment during the second quarter of 2026.
The Coastal House Price Index growth surged to 11.9% on a 12-month average in the second quarter up from 10.6% in the first quarter and marking a strong recovery from the -0.3% growth recorded in the second quarter of 2025.
The average house price in the coastal region stands at N$1,576,000 at the end of the second quarter.
The Northern House Price Index growth contracted by 0.7% in the second quarter on a 12-month rolling basis, a deterioration from the 0.4% growth recorded in the first quarter and well below the 14.4% growth observed in the second quarter of 2025. The average house price for this region stands at N$971 000.
The Southern House Price Index growth contracted further by 5.2% in the second quarter of 2026 on a 12-month rolling basis, compared to a 0.7% decline in the first quarter of 2026 and 14.6% growth a year earlier. The average house price in the southern region stands at N$905 000.
Residential plot sales remained in contraction during the second quarter of 2026 declining by 26.7%, from the 32.0% contraction recorded in the first quarter of 2026. Performance also remained significantly weaker than the 13.1% decline observed in the second quarter of 2025.
