House prices in Utrecht now also above pre-crisis level

21/10/2016 15:00
In Q3 2016, prices of owner-occupied houses in the municipality of Utrecht exceeded the pre-recession level for the first time. In Amsterdam this has already been the case during the past three quarters. Across all provinces and in the four major Dutch cities, the average price level of owner-occupied homes (excluding new constructions) was higher in Q3 than in the same period last year. This is shown in a survey on price developments of privately-owned residential property in the Netherlands published by Statistics Netherlands (CBS) and the Land Registry Office (Kadaster).

Prices of owner-occupied homes (excluding new constructions) in Utrecht peaked in Q3 2008. Subsequently, prices plummeted by more than 17 percent to a low in Q2 2013. Now, more than three years later, prices are nearly 2 percent above the peak level reached in 2008.

Price index of existing owner-occupied dwellings

Year-on-year house prices higher throughout the country

Across all provinces and in the four major cities, residential property prices were higher in Q3 than in Q3 2015. For the tenth time in a row, prices rose most rapidly in the province of Noord-Holland (9 percent). Amsterdam, where prices soared by an average of more than 14 percent on a year-on-year basis, contributed most to the price increase in Noord-Holland.

In the provinces of Utrecht (6.9 percent) and Groningen (6.7 percent), the price rise was also above the nationwide average of 5.6 percent. The same applies to the other three major cities Utrecht (9.8 percent), The Hague (8.4 percent) and Rotterdam (7.5 percent).

Price development existing owner-occupied dwellings by region, 2016-III

Prices of flats nearly 8 percent up

All types of dwellings are more expensive than one year previously. Flat prices rose most, by nearly 8 percent. This has to do with house price developments in the four largest cities, where flats make up a relatively large part of the dwelling stock. Prices of detached houses rose only 4.3 percent.

For all other types of residential property, apart from detached houses, this is the highest price rise in the past 14 years. The price rise for detached houses is the highest in 8 years.

More older, fewer younger buyers

Relative to seven years ago, there is a shift in the share of younger versus older buyers. The share of buyers under the age of 25 was reduced by half from 20 to 10 percent. Over the same period, the share of buyers aged 65 and older has in fact doubled from 3 to 6 percent. In Q3 2009 and 2016, a vast majority of buyers were in the 25-34 age bracket.

Share in house purchases