House price exceeds WOZ value by 12.5 percent

In the second quarter of 2008, selling prices of existing owner-occupied houses were 12.5 percent above the average house value based on the Act on Property Assessment (WOZ) with reference date 1 January 2005. According to figures published by Statistics Netherlands and the Land Registry Office, the most obvious discrepancy between selling price and WOZ value was recorded in the western part of the country.

Most houses sold above their WOZ value

In the second quarter of this year, 80 percent of all houses sold were sold at prices exceeding the WOZ value with reference date 1 January 2005. One in every four houses is sold 20 percent or more above the WOZ value. A price gap between selling price and WOZ value ranging between 0 and 20 percent is most common (more than half of all houses sold).

Discrepancy between selling price and WOZ value by share of transactions, 2nd quarter 2008

Largest gap found in western part of the country

The average difference between house price and WOZ value was most obvious (nearly 15 percent) in the western part of the Netherlands. Price differences were most notable in the categories flats and detached houses in the west of the Netherlands. The smallest difference between house price and WOZ value (9 to 10 percent) was recorded in the east and west of the Netherlands.

Discrepancy between house price and WOZ value by type of dwelling and part of the country, 2nd quarter 2008

Lowest price increase in years

The average house price in the second quarter of 2008 was 12.5 percent above the WOZ value, as against 9.1 percent one year ago. According to the Price Index Existing Owner-occupied Houses, this results in a price increase of 3.2 percent, the lowest in years, but still above the inflation rate. In the first quarter of 2000, the average annual price increase peaked at 19.8 percent and subsequently slowed down and has varied around 4 percent in recent years.

Prices of existing owner-occupied houses

Erna van der Wal