October 26, 2020

Kup

News Updates Everyday

“Half of the houses offered more than just a price” | money

"Half of the houses offered more than just a price" | money

This is what director Frank Verwoerd from the real estate consultant Colliers says.

That is more than before the corona crisis: According to real estate consultants, around 4 out of 10 houses were outbid in the first quarter of this year. Verwoerd attributes this to the great housing shortage and the stable low mortgage rate.

On average, an apartment in the Netherlands is now being offered 3.5% above the asking price. For row houses this is an increase of almost 2% and for corner houses around 0.75%. This emerges from the monthly housing market warning from technology company Ortec Finance.

Overheated

The Dutch bank was also surprised this week to conclude that the property market is continuing to overheat despite the corona crisis. Prices rose relatively sharply even in the second quarter when the Netherlands was at a standstill.

The bank had previously predicted that house prices would likely fall slightly in the coming years. DNB director Klaas Knot now doubts this. The demand for housing remains high and the supply limited as few new buildings are being built.

If unemployment continues to rise and disposable household income falls, the demand for housing can fall, which can have the effect of lowering prices.