House prices in the Netherlands: A positive trend for home buyers
There is good news for those wanting to buy a home in the Netherlands: New figures from the Dutch national statistics office CBS show that house prices are continuing to fall, maintaining the trend that started last August.
House prices, which had risen steadily since 2013, were 0.8% lower in February compared to the same month in 2022, marking the first annual decline in a decade. Month on month, prices changed by 1.5%, bringing the average home price to just over €410,000. While January prices saw a slight rise, experts described it as a seasonal blip.
Last August, the average price for a home was €446,000
Despite lower prices, sales haven’t surged. The land registry office (Kadaster) reported nearly 12,000 transactions last month, down 15.5% from February 2022.
Buyers may be waiting to see how house prices and interest rates will evolve. Economists predict house prices may drop an additional 6% in 2023, consistent with the decline observed in 2022.
Furthermore, buyers might soon have more properties to choose from, as evidence suggests that landlords are selling apartments when tenants leave. This is partly due to government plans to regulate up to 90% of the rental sector.
Impact of private landlords selling on the Dutch rental market
Private landlords, particularly those with few properties, are opting to sell rather than rent out. They argue that new government regulations on rent and increased taxes make it difficult to achieve a reasonable return on rental properties, potentially affecting as many as 150,000 homes.
If many landlords sell their properties, it could become harder to find rentals, driving prices up in the non-rent-controlled sector. This creates an even stronger incentive to purchase a property.
Currently, rental properties outside the social housing sector make up only 8% of the Dutch housing stock, whereas approximately 57% of apartments and houses are owner-occupied.
