Property should be valued every year: central bank
Tuesday 09 October 2012
The central bank DNB said on Tuesday property should be valued every year, say press reports.
Because half of valuations were done more than a year ago, losses could be higher than expected, said the bank. Consequently, independent valuers should be called in at least once a year.
'There is a potential danger losses will be higher and slow the necessary strengthening of financial buffers,' the bank said in a report.
Insurers and pension funds have investments in property currently valued at €11bn and €20bn respectively. The risk is even greater for banks which have €80bn in property investments.
The number of office blocks standing empty is growing and the prices have fallen four years in a row. In the housing market, around 20% of home owners are in negative equity.
The bank is pleased with the financial buffers at Dutch banks but says there is little room for new setbacks. It also remains difficult for banks to obtain credit on the financial market.