Dutch housing market continues to gain momentum
18 april 2017
The Dutch housing market is highly dynamic due to the large demand for housing. The latest research by NVM (Dutch Association of Real Estate Agents) shows that the average transaction price increased by 1,1% compared to Q4-2016 to an average sales price of € 248,000. This is an annual increase of 8,8% compared to Q1-2016.
Increase in number of dwellings sold
In the first quarter of 2017 approximately 50,200 dwellings were sold, this is an increase of approx. 10% compared to the same quarter a year ago. Due to a positive demographic development, low mortgage interest rates and positive economic development, the demand for housing remains strong.
Sales period of homes decreases
The average sales period of a house in Q1-2017 was approx. 77 days. This is 31 days shorter compared to the year before. As a result of the increased dynamics, the number of dwellings that are for sale was reduced by 32,7% to 103,000 nationwide.
Regional differences
There are significant regional differences in the development of the housing market. The housing markets in the larger cities have seen the strongest price development. Amsterdam is leading with a year on year increase of 20%. Due to the large demand for housing in the largest cities, the supply of dwellings that are for sale declines. This reduces the number of transactions.
Also the surrounding areas of cities like Amsterdam, Utrecht, Nijmegen and Den Bosch have seen a strong price development over the last year. Sellers in cities as Amsterdam and Utrecht receive a high sales price that enables them to bid higher on a house in the surrounding areas. More rural regions as Zeeuws Vlaanderen and North Groningen have a more lagging price development.
Facts on the Dutch housing market (source NVM, 2017)
• The average transaction price increased by 8,8% compared to a year ago
• The average transaction price increased by 1,1% in Q1-2017 compared to the previous quarter
• The average price per m² UFA increased year on year by 7,8% nationwide
• The price per m² UFA of apartments increased by 10,3% to an average of € 2,415 per m² UFA
• The average sales period of a dwelling is 77 days
• 62% of the new supply is being sold within 90 days
• The number of dwellings that are offered for sale is reducing. Mid Q1-2017 estate agents of the NVM have 79,000 dwellings for sale which is 32,7% lower compared to the same quarter a year ago
• In Q1-2017 approx. 7,800 new build dwellings are sold by estate agents of the NVM. This is 14% higher compared to a year ago.
More information?
For more information about the opportunities on the Dutch residential market, please do not hesitate to contact Jelle Tinke, International Advisor.