Dutch house prices rise at fastest rate in almost 9 years
The property market in the Netherlands continues its impressive growth spurt with house prices on average 4,6 percent higher in June 2016 compared to June 2015.
This rise in the price of owner-occupied dwellings (not including newly built residences) is the greatest increase since 2008, according to new statistics released by CBS.
House prices in the Netherlands have been climbing steadily since June 2013, when the Dutch housing market started to show signs of renewal after years of crisis-induced stagnation.
The fall and rise of house prices
Prior to the housing market crisis, property prices reached peak levels during the property bubble in August 2008.
Today's national price level is still well below (13,8 percent) the record levels of August 2008, but already 9,8 percent higher than the market's lowest point in June 2013.
Current national average house prices for June 2016 are roughly equivalent to those of January 2005.
A challenge for potential home-buyers
The rapid increase in sales prices is proving a challenge for potential homeowners looking to buy a house in the Netherlands, as the trend shows no signs of slowing, particularly in the larger cities.
The increased competition, caused by high demand, record low interest rates on mortgages and a buyer's market, means many prospective home-buyers must continue to rent a house because their desired properties are proving financially out of reach.
According to the Nederlands Dagblad, Dutch real estate agents are not only encountering first time home owners who are faced with greater financial obstacles, they are also observing a growing gap in the housing market between regions that are performing well, and those that are lagging behind.
Price increase varies by region
The extent of the price rise varies considerably by region, with the four big Dutch cities showing even greater increases than the national average.
Amsterdam leader of the pack
At the top of the table, Amsterdam’s house prices have risen a whopping 14,6 percent in the second quarter of 2016, compared to a year earlier.
Amsterdam is the only region where house prices have actually overtaken the peak price levels of 2008, with prices in the second quarter of 2016 an average of 7 percent more expensive.
Randstad also in high demand
Slower growth in less central regions
Residential properties in the regions of Friesland, Groningen and Drenthe saw the smallest price increases of a little over 2 percent, and the region of Zeeland experienced an increase of barely one percent.
Number of house sales also up
CBS also reports that the number of house sales is also up, with 93.212 properties changing hands in the first half of 2016, almost a quarter more than in the first half of 2015.