House prices up 4.41% y-o-y in Q3 2019

The Netherlands’ house prices continue to rise, albeit at a slower pace, amidst falling demand, coupled with acute housing shortage. The average purchase price of all dwellings rose by 4.41% during the year to Q3 2019, a sharp slowdown from the prior year’s 8.45% growth and the second lowest growth since Q3 2015. On a quarterly basis, house prices increased slightly by 0.64% during the latest quarter.

Home sales are falling amidst supply shortages

In the first nine months of 2019, the number of dwellings sold fell by almost 2% to 158,872 units from a year earlier, following an almost 10% decline in 2018, according to Statistics Netherlands (CBS). The decline in sales was partly due to worsening supply shortages.

The housing shortage in the Netherlands was estimated at about 200,000 units this year.

Rents, rental yields: attractive yields for a developed economy at 3.7% to 6.4%

Amsterdam apartment costs are around €6,900 per sq. m.

Netherlands: typical city centre apartment buying price, monthly rent (120 sq. m)
	Buying price	Rate per month	Yield
Amsterdam	€ 828,240	€ 2,569	3.72%
The Hague	€ 438,360	€ 2,050	5.61%

Recent news: The Dutch economy grew by 1.9% in Q3 2019 from a year earlier, slightly up from y-o-y expansions of 1.8% in Q2 and 1.7% in Q1, thanks to higher household consumption and investments in fixed assets, according to the CBS. The Netherlands' GDP is expected to grow by 1.7% in 2019 and by 1.3% in 2020, a slowdown from expansions of 2.6% in 2018 and 2.9% in 2017, according to the European Commission.