Whilst all bubbles must burst, the Netherlands also has a chronic housing shortage that is keeping prices artifically high
Translated by Thomas Ansell
House prices in Friesland have risen again, in line with the rest of the Netherlands, reports the Omrop Fryslân. A combination of a chronic lack of both social and private sector housing and a lack of oversight from government has created a situation where people are unable to benefit from the rise in house prices as they have few moving-on options. In the last three months, house prices in the Province rose by six percent but, tellingly, even fewer houses actually sold.
In the first quarter of 2021, a total of 988 houses were sold in Friesland, down a third on the previous quarter. The south-west of the Province was the only region to see an uptick in sales, partially due to the ‘home-working effect’ where more and more people living in tiny (and expensive) properties in the ‘Randstad’ are moving to less-populated Provinces that have relatively lower prices.
Starter homes still a distant dream for many
The situation is especially poor for those looking to purchase their first home, despite the Dutch government’s overdrachtsbelasting tax relief, which the national estate agent’s association (NVM) says has delivered “no benefits” .
The average property price in Friesland is now 293,000 euros, six percent up on the last quarter but an eye-watering 21 percent more than last year. The rise is the greatest in 20 years.