WINDHOEK, Sept. 23 — Record-low mortgage rates and shortage of inventory are keeping the Namibian housing market strong, an expert said Wednesday.
According to FNB market research manager, Frans Uusiku, although Namibia’s economy remains in a relatively weak position, the housing market is showing some signs of a return to normalcy.
“In fact, buying conditions for houses have improved and are back to where they were about two years ago. However, affordability is expected to remain challenging as the labor market is still reeling from the impact of the COVID-19 pandemic,” he added.
Uusiku is of the view that over time, as the policy momentum on affordable housing continues to gain traction, price pressure is expected to soften as newly completed homes help increase inventories from their current low levels.
Meanwhile, the FNB House Price Index is up by 9.6 percent year on year at the end of June 2021, following a contraction of 1 percent year on year over the same period in 2020, with the national weighted average house price coming in much stronger at 1.2 million Namibia dollars (81,000 U.S. dollars), compared to 1.04 seen in a prior year.
“These trends mirror the considerable increase in mortgage sales across the board, with a relatively high growth impact coming through from the medium and large housing segments. This also reinforces the narrative that Namibia is currently in a buyers’ market, making it a good time to invest in a property or a dream home,” Uusiku concluded.
The FNB is one of Namibia’s largest commercial banks.