Housing market in Netherlands collapses

10th July 2008, Comments 3 comments

Time of expensive houses has passed and fewer houses are being bought, say National Estate Agents Association.

10 July 2008

THE NETHERLANDS - Dutch estate agents say the housing market in the Netherlands has collapsed.

The National Estate Agents Association says the time of huge price rises has passed and that fewer houses are being bought. This is due to the economic downturn, inflation and rising interest rates.

The average purchase price of a house has risen in the past three months. However, after an adjustment for inflation, that rise comes to only half a percent.

Quarterly figures from the association show that in June 2008, 25 percent fewer houses were sold than in June 2007.  

However, the estate agents believe that the market can revive quickly, because the demand for owner-occupied properties is still greater than the supply. They also think it notable that despite the downturn, prices for flats have risen three times more than those for family houses.

[Radio Netherlands / Expatica]

3 Comments To This Article

  • Marina posted:

    on 13th July 2008, 21:43:04 - Reply

    "Time of expensive houses has passed"....

    Really? Can you tell us where to buy a cheap house in Amsterdam then?

    Looking forward to that article...
  • Jeroen posted:

    on 11th July 2008, 17:59:17 - Reply

    Where you getting your news? You can't just make stuff up...

    AMSTERDAM, July 10 (Reuters) - Dutch house prices are holding up surprisingly well despite a slowing economy and falling property markets elsewhere and should continue to do so, the real estate agents association said on Thursday.
  • Dan posted:

    on 11th July 2008, 17:54:28 - Reply

    I would say the title of this article suffers from a translation problem. "Collapsing" implies a total capitulation...not a half percent adjusted increase. A half a percent every three months equals a 2% increase per year...even adjusting for inflation. Similarly, less supply than demand also means "collapse" is an inappropriate word choice. Perhaps "slows" would be more accurate and more responsible, but of course not as attention getting.