House prices and cost of renting falling across the Netherlands
After years of Statistics Netherlands (CBS) and various housing associations reporting record-breaking price hikes in housing and rents, recent figures reveal that in the fourth quarter of 2022, the cost of buying a house in the Netherlands fell in all 12 Dutch provinces, and similar trends can be seen in most regions when it comes to renting.
CBS: House prices fall across all 12 Dutch provinces
On Monday morning, CBS revealed that the prices of existing owner-occupied homes fell by an average of 2,4 percent between the third and fourth quarter of last year, marking the first decrease in Dutch property prices in nine years. CBS also noted that house prices fell across all 12 provinces in the Netherlands - something that hasn’t happened since the second quarter of 2013, when the Dutch housing market crashed.
Perhaps surprisingly, of all the provinces, the most significant fall in prices was observed in Utrecht, where the cost of buying property fell by 3,9 percent. The smallest drop was recorded in Limburg (1,2 percent). In North Holland and South Holland - provinces that are exceedingly popular amongst prospective buyers - prices fell by 3,2 and 2,1 percent respectively.
When it comes to cities and municipalities, Utrecht once again reported the largest decrease (6,3 percent), while in Rotterdam house prices fell by just 1,7 percent - significantly lower than the national average. In Amsterdam and The Hague, prices fell by 5,7 and 4,2 percent respectively.
Falling house prices not yet reflected in WOZ waarde
While house prices are falling on a national level - according to CBS, the average cost of buying a house in the Netherlands at the end of 2022 was 415.546 euros - homeowners are yet to see this change reflected in the official property value (WOZ waarde) of their homes.
According to the Waarderingskamer - the government body responsible for calculating the WOZ waarde of properties - the official value of homes in the Netherlands has risen by 17 percent as of the beginning of 2023.
"The increase in value of a home depends on various factors, such as its location, the type of home and the status of maintenance,” the Waarderingskamer told NU. “The 17 percent increase is [therefore] a national average. The increase in value per home deviates from this national average.”
Cost of renting in the Netherlands also fell in 2022
Similarly, figures published last week by rental housing platform Pararius show that the final quarter of last year also saw a notable drop in Dutch rental prices. Over the course of 2022, Pararius reports that the average price per square metre for unregulated housing (i.e. not social housing) in the Netherlands fell by 1,1 percent. However, the overall supply of residential rental properties fell by 8,9 percent.
While on a national level rental prices have fallen, in the five largest Dutch cities - Amsterdam, Rotterdam, Utrecht, Eindhoven, and The Hague - rental prices continued to rise in 2022. Unsurprisingly, Amsterdam recorded the most significant increase (10,9 percent), now reporting an average price per square metre of 25,75 euros.
“In large cities such as Amsterdam and Rotterdam, the rental offering is declining rapidly,” Pararius CEO Jasper de Groot explains. While demand is rising, “many private landlords currently feel compelled to sell their rental property / properties because letting properties will soon no longer be profitable…this means that prices at the urban level are rising sharply.”
Thumb: Lea Rae via Shutterstock.com.