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Dutch house price drop third biggest in EU since crisis began

Thursday 31 January 2013

Spain and Ireland are the only two countries in Europe where house prices have fallen more sharply than in the Netherlands over the past four years, according to Dutch national statistics agency CBS.

After reaching a peak in 2008, Dutch and Spanish house prices have been going down every year, but in Europe as a whole, prices have stabilised, the CBS told news agency ANP. The drop in Spain is around 7% a year, in the Netherlands 4%.

New figures from European statistics office Eurostat on Thursday show house prices across the EU went down an average 2.5% in the third quarter of last year, compared with the year-earlier period.

The drop in the Netherlands was 8.7%, in Spain 15% and Ireland almost 10%. By contrast, house prices in Norway and Estonia rose nearly 8.5%.

Foreign banks

Meanwhile, housing minister Stef Blok told Elsevier magazine on Thursday he hoped more foreign banks would enter the Dutch mortgage market and beef up competition.

In the past they had been surprised by the fact people can borrow more than the value of their homes, and at the popularity of interest only mortgages.

Now changes have been made, Blok said he hoped this would encourage foreign banks to come to the Netherlands.

The competition authority NMa is currently investigating the Dutch mortgage market, which is dominated by the big four banks.

© DutchNews.nl



 

Readers' Comments

Yes please, let's have some real competition, where the interest rates set reflect the real borrowing costs of the banks and not the gouging of the home owner. Despite the bank borrowing costs having plummeted since 2008, the cost to the home owner hasn't changed significantly.

By H. | 31 January 2013 4:47 PM

Well Dutch houses are grossly overpriced for what they are...so no surprises they dropped...

By Jack | 31 January 2013 5:16 PM

Good news for the NL camping! (Even the price of a one car garage is formidable!)

By The visitor | 31 January 2013 11:59 PM

With the amount someone would be paying in interest for an average mortgage over 30 years, if you compare the price of private apartments to the 300 euro a month fee often asked social housing in city centres, anything over 50,000 euros in the private sector could be considered over priced.

With the prospect of tax rises and job losses, it's not surprising that there is a more limited number of locals willing to pay additionaly for a larger home than they could get for free, or foreigners willing to commit to a longer say and get a mortgage to avoid otherwise having to pay 1,500 euros or more a month for private rental.

By WhatHousingMarket | 1 February 2013 6:53 AM

i'm so happy I didn't but i house when I first came here in 2007! Everyone in my workplace was pushing me like arguing that it was the best investment to make! in fact it was just a bubble!

By bird | 1 February 2013 8:59 AM

I feel sorry for those who rushed in to buy a home before the rules stopped them from borrowing as much as possible, only to dump it into a depreciating asset. The amount of wealth being destroyed in Europe is frightening. Do not buy a house in Holland unless you get a serious discount. There is a clear bubble here and it's deflating.

By Kevin | 1 February 2013 9:42 AM

NL should open the traditional banking sector so that there can be more players, more employment, better rates for deposits and lending.

By ufo | 1 February 2013 9:53 AM

It is not a bubble neither something so extraordinary. If a bubble would burst prices should have gone down 30-40% or more. This is a small correction as due to crisis loans were not so easy to get. NL due to its geography will never ''loose'' the value of housing, and since this market is regulated government could intervene.

By kos | 4 February 2013 12:23 AM

Very good, house prices were ridicoulously high. Anyway it's not yet time to buy, I think in one year prices could drop more than 10% of the current selling prices...

By ilpeppo | 4 February 2013 8:42 AM

The Dutch housing market is almost certainly going to drop by a minimum of at least 10% over the next 18-24 months.

It is being engineered to ensure that this happens. If unemployment rises, if the German economy stumbles or if NL exports fall then the housing market could drop another 15% over the next 24 months. This is not a correction. What you are seeing is a controlled and steady deflation of a massive housing bubble.

By Dr. Markus van Driessen | 5 February 2013 1:21 PM

The Dutch housing market is almost certainly going to drop by a minimum of at least 10% over the next 18-24 months.

It is being engineered to ensure that this happens. If unemployment rises, if the German economy stumbles or if NL exports fall then the housing market could drop another 15% over the next 24 months. This is not a correction. What you are seeing is a controlled and steady deflation of a massive housing bubble

By Dr. Markus van Driessen | 5 February 2013 1:21 PM

 
 
 
 
 
 
 
 
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