Email: info@ad-houses.com19 March, 2024

Netherlands’ house price growth decelerating

House prices up 4.18% y-o-y in Q2 2019

The Netherlands’ house prices continue to rise, albeit at a slower pace, amidst falling demand, coupled with an acute housing shortage. The average purchase price of all dwellings rose by 4.18% during the year to Q2 2019, a slowdown from the prior year’s 8.9% growth and the lowest growth since Q3 2015. On a quarterly basis, house prices increased 3.62% during the latest quarter.

Home sales are falling amidst supply shortages

In the first half of 2019, the number of dwellings sold fell by almost 5% to 99,937 units from a year earlier, following almost 10% decline in 2018, according to Statistics Netherlands (CBS). The decline in sales was partly due to worsening supply shortages.

The housing shortage in the Netherlands was estimated at about 200,000 units this year.

Rents, rental yields: attractive yields for a developed economy at 3.7% to 6.4%

Amsterdam apartment costs are around €6,900 per sq. m.

Netherlands: typical city centre apartment buying price, monthly rent (120 sq. m)
Buying priceRate per monthYield
Amsterdam€ 828,240€ 2,5693.72%
The Hague€ 438,360€ 2,0505.61%

Recent news: The Dutch economy grew by 2% in Q2 2019 from a year earlier, up from the previous quarter’s 1.7% growth, thanks to increased investments in fixed assets, household consumption and trade balance, according to CBS. The Netherlands’ GDP is expected to grow by 1.6% in 2019 and by 1.5% in 2020, a slowdown from expansions of 2.6% in 2018 and 2.9% in 2017, according to the European Commission.

SOURCE: www.globalpropertyguide.com

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