Windhoek: Residential plot sales in Namibia contracted by 32 per cent in the first quarter of 2026, remaining deep in negative territory for the second consecutive quarter, as coastal house prices surged by 10.6 per cent, FNB Namibia said on Tuesday.According to Namibia Press Agency, plot sales, a key measure of land delivery, declined across all four regions, with the coastal and central regions recording the steepest contractions at 41.8 per cent and 41.7 per cent respectively. The northern and southern regions declined by 13.4 per cent and 36.3 per cent.The coastal region's average house price reached N.dollars 1.6 million at the end of the first quarter, rising sharply from 4.2 per cent growth recorded in the fourth quarter of 2025. The central region followed with an average house price of N.dollars 1.8 million, the highest nationally, reflecting growth of 7.6 per cent.The northern region slowed sharply to 0.4 per cent price growth from 9.5 per cent in the previous quarter, while the southern regio n contracted by 0.7 per cent to an average of N.dollars 880 000. Transaction volumes in the southern region remained exceptionally low, with only 13 housing transactions recorded during the quarter.FNB Namibia Market Research Manager Mandisa Van Wyk stated that the persistent weakness in plot sales reflected slow land servicing and delivery. 'Addressing the housing shortfall will depend on improvements in labour market conditions and real income growth, alongside measures to accelerate the servicing of residential land and ease construction cost pressures,' Van Wyk said.The bank warned that without meaningful progress on land delivery and affordability, the market recovery would remain skewed towards higher-income and foreign buyers.