House prices drop faster

22/08/2011 15:00

Prices of existing owner-occupied houses were on average 2.3 percent lower in July 2011 than in July 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 somewhat more substantial than in previous months.

All types of dwellings were cheaper in July 2011 than one year previously. Prices of semi-detached houses dropped most (2.7 percent), prices of terraced houses the least (2.1percent).

Prices fell across all provinces. With 3.7 percent, residential property prices declined most in Groningen. Zeeland was the only province where residential property prices were higher ( 0.8 percent).

Prices of existing residential property units rose by 0.2 percent relative to June 2011. In six provinces prices rose with a maximum of 1.0 percent, in the other six provinces prices dropped with a maximum of 1.1 percent.

Around 10.5 thousand existing owner-occupied houses changed hands in July, almost 15 percent down on July 2010. In the first seven months of 2011, over 68 thousand houses were sold, a decline by 5 percent compared with the same period in 2010.

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. These data are laid down on average 2 to 3 months after the signing of the provisional deed of purchase. Therefore, the effects of the tax reduction will not become manifest before September/October.

Prices of existing own homes

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.