Drop in house prices more substantial

21/09/2011 09:30

Prices of existing owner-occupied houses were on average 2.8 percent lower in August 2011 than in August 2010. According to the price index of existing residential property – a joint publication by Statistics Netherlands and the Land Registry Office – the price drop is more substantial than in previous months.

All types of dwellings were cheaper in August 2011 than one year previously. Prices of detached houses dropped most (4.5 percent), prices of terraced houses the least (2.1 percent).

Prices fell in almost all provinces. With more than 5 percent, residential property prices declined most in Limburg and Gelderland. Zeeland was the only province to show a price increase ( 1.7 percent).

Prices of existing residential property units declined by 0.7 percent relative to July 2011. In nine out of twelve provinces prices dropped; the most in Limburg and South Holland (more than 2 percent). With 2.6 percent, Utrecht saw the highest price increase.

Around 10 thousand existing owner-occupied houses changed hands in August, almost 4 percent fewer than in August 2010. In the first eight months of 2011, over 78 thousand houses were sold, a decline by nearly 5 percent compared to the same period last year.

Early July, the Dutch government decided to reduce the property transfer tax rate, taking effect from 15 June 2011. Statistics Netherlands uses the registrations as recorded by the Land Registry Office. These data are on average laid down 2 to 3 months after the signing of the provisional deed of purchase. Therefore, the effects of the tax reduction will become visible in the figures over September/October.

Prices of existing own homes

More figures can be found on the theme page Prices.

For an interactive illustration of regional developments in house prices and transactions, see the Dutch housing market.