House prices in the Netherlands have now risen for the third month in a row, according to new figures from the national statistics agency CBS.
There was a 0.6% rise in August, 0.5% in July and 0.2% in June, and that, experts say, indicates prices have now stabilised, even though they are still around 5% lower than a year ago. Prices had been falling since August last year.
Land registry figures also show that the number of transactions may also be stabilising. The agency noted nearly 16,000 transactions in August, just 3% down on a year ago, in what experts say is another sign that the market is settling down.
Interest rates have also stablised at around 4% over the past few months, which is still a very reasonable rate in historical terms.
Dutch housing shortage
One of the main problems facing people looking to buy a house in the Netherlands remains the shortage of homes to buy. Dozens of projects to build new homes have been cancelled for a variety of factors, not least because the property is often too expensive for most budgets.
The situation is vividly illustrated in Amsterdam, where the city’s housing chief has just admitted that the number of new homes built in Amsterdam this year is likely to be no more than 4,500, well short of the 7,500 target.
In fact, work has started on just 211 “affordable” rental and owner-occupied properties, even though this is the sector the city wants to focus on.
Election ahead
Officially, the Netherlands still has a current shortage of some 390,000 homes but this is only set to increase in the coming years.
Of course, the Netherlands will elect a new government in November, and it remains to be seen what measures the next cabinet will come up to boost the number of homes. Housing is set to be one of the biggest election issues!
