Netherlands Real Estate Market Crashes: Newly Built Home Sales Plummet

The Netherlands real estate market crashes as newly built home sales plummet by 56.2%. Find out the latest statistics and trends in the Dutch housing market.

The sale of newly built homes in the Netherlands has experienced a significant decline in the second quarter, according to the latest data released by Statistics Netherlands (CBS). The report reveals that the number of newly-built owner-occupied homes sold during this period was more than half lower compared to the same quarter last year. Only 3,300 newly-built homes were sold, marking a staggering decline of 56.2 percent, the largest drop since CBS began tracking this figure in 2015.

Netherlands Real Estate Market Crashes: Newly Built Home Sales Plummet | ogusyis

In the first half of 2023, covering both the first and second quarters, a total of just over 6,600 newly-built homes were sold, reflecting a 54.4 percent decrease compared to the previous year. This has also been identified as the largest decrease since the measurement began.

In addition to newly built homes, the report also highlighted a decline in the sale of existing owner-occupied homes. In the second quarter of this year, the number of existing home sales fell by 6.1 percent, with a total of 44,500 homes changing hands. Remarkably, this decline was relatively smaller than in previous quarters, excluding the fourth quarter of 2022. Overall, in Q2 2023, a total of almost 48,000 homes were sold, indicating a 13 percent decrease compared to the previous year. This decline marks the ninth consecutive quarter where fewer homes were sold compared to the corresponding quarter of the previous year.

Another significant aspect of the report is the average transaction price of newly built owner-occupied homes. In the second quarter, the average price amounted to almost 496,000 euros, which is lower than the second quarter of 2022 when the average price stood at 514,000 euros. However, due to a quality correction in CBS's index, the price of a new home adjusted for quality and type witnessed a 1.7 percent increase.

On the other hand, the average price of an existing owner-occupied home was 5.2 percent lower compared to a year earlier. Looking at the broader picture, house prices in the Netherlands, encompassing both newly built and existing owner-occupied homes, decreased by 4.3 percent in the second quarter of this year compared to the previous year.

Interestingly, the Netherlands is among only nine countries in the European Union where home prices declined in the second quarter. These countries include Germany, Sweden, and Denmark. In contrast, the average home prices across the EU witnessed a decline of 1.1 percent during the same period. Among the countries experiencing an increase in home prices, Croatia topped the list with a surge of 13.7 percent, followed by Bulgaria at 10.7 percent.

In conclusion, the sale of newly built homes in the Netherlands has seen a significant decline, with the second quarter of 2023 marking the largest decrease since relevant measurements began. The ongoing decline in home sales, both for newly built and existing properties, coupled with price fluctuations, reflects a challenging housing market in the country. Netherlands Real Estate Market Crashes: Newly Built Home Sales Plummet