Prices of existing owner-occupied dwellings in the Netherlands have dropped almost continually since mid-2008. In August this year, house prices were 8.5 percent down on three years ago. Prices of houses located in the four major Dutch cities have fallen less rapidly than in the rest of the country.
House price developments , August 2011
Smallest price drop recorded in Utrecht
Among the four major Dutch cities, Utrecht showed the smallest price drop in August. Prices of existing residential property units were more than 2 percent below the price level of three years ago. With more than 7 percent, the most substantial price drop was observed in The Hague.
In most other Dutch cities with a population over 100 thousand, residential property prices also declined less than average. In eight cities, prices fell by more than 8.5 percent. In the municipalities of Ede and Eindhoven, house prices slumped by more than 19 and 13 percent respectively relative to three years previously.
Residential property prices Amsterdam cyclically sensitive
The relatively modest price drop in Amsterdam compared to the rest of the country is exceptional. Residential property prices in Amsterdam generally fall faster in times of economic depression, but also tend to rise more rapidly when the economy is booming. When the Dutch economy suffered a 3.5 percent contraction in 2009, house prices fell more than average in Amsterdam. In 2010, when there was economic growth, house prices in Amsterdam rose modestly, whereas prices across the Netherlands were still below the level of one year previously.
House price developments Amsterdam