Category Archives: Netherlands

Dutch House Prices Are Rising Slower

The Dutch Statistics Bureau CBS came out last week with a new monthly update on Dutch house prices. The data is showing that the speed at of which house prices in The Netherlands are rising is slowly declining.

Meanwhile the Dutch government has come out in the past few weeks with changes to the taxing of property investments in box 3 (investment properties will be taxed higher) and it has proposed a new law which will limit the amount of the WOZ-waarde (the value of a home used for taxation purposes) to be used as points to calculate whether a house will be classified for rent control or not. These two changes could potentially have a big impact on the prices of Dutch homes.

At this moment Dutch house prices were 5,7% higher in August 2019 than a year before. This is down from the 9,5% year over year growth of prices in November 2018.

Netherlands Average House Prices Year over Year Percentage Change
Netherlands Average House Prices Year over Year Percentage Change (CBS)

The average sales price of Dutch home has risen to a price of € 316,000. At the bottom in June 2013 the average sales price of house in The Netherlands was € 206.000. From the bottom in 2013 prices have risen a total of 53%.

Netherlands Average House Sale Price (CBS)
Netherlands Average House Sale Price (CBS)

The rise in prices has led to a decline in houses that are sold per month. As can be seen in the two below charts the amount of houses that are sold each month has been declining. This is also partly caused by a shortage of houses in the Netherlands.

Netherlands Houses Sold Year Over Year Percentage Change (CBS)
Netherlands Houses Sold Year Over Year Percentage Change (CBS)
Netherlands Amount of Houses Sold per Month (CBS)
Netherlands Amount of Houses Sold per Month (CBS)

At this moment the value of all houses sold in the Netherlands is not showing any signs of weakness but a drop can happen suddenly as the below chart shows.

Netherlands Value of Houses Sold per Month (CBS)
Netherlands Value of Houses Sold per Month (CBS)

AEX index since inception with and without dividends re-invested

The AEX index is an index grossly composed of the 25 largest listed companies by market capitalisation on the Amsterdam Stock Exchange (Euronext). As of today the company with the highest weighting in the index is ASML. As can be seen in the table below is that the top 5 companies in the index have a total weighting of almost 50% while the top 10 has a total weighting of almost 70% in the index.

Top 10 AEX Index components by weight
Top 10 AEX Index components by weight as of September 3, 2019 (source iShares AEX ETF)

In the past I’ve shared a chart which showed the AEX index since inception with dividends re-invested and without. It’s time to share an updated version of that chart. This chart is a great example of how the compounding of dividends positively impacts long term investment returns. Via Twitter.

AEX index since inception with and without dividends re-invested March 1983 - September 2019 (Dutch: AEX herbeleggings index)
AEX index since inception with and without dividends re-invested March 1983 – September 2019

Dutch Government debt payments to GDP from 1950 till 2020 / Rentelasten Nederlandse Staatsschuld van 1950 tot 2020

A chart of the debt payments as a percentage of GDP of the government of the Netherlands from 1950 till 2020.

Een grafiek van de rentelasten als een percentage van het bruto binnenlands product (BBP) die de Nederlandse overheid betaald op de staatsschuld van 1950 tot 2020. Via Twitter

grafiek Rentelasten Nederlandse Staatsschuld 1950 - 2020 als een percentage van het bruto binnenlands product (BBP) bron CPB. Chart Netherlands Dutch Government debt payments to GDP (Gross Domestic Product)

Amsterdam housing prices in euro per m2 from 2002 till 2018

This animation (gif) show the property value in euro per m2 of houses in Amsterdam from 2002 till 2018 based on the sale price. The color ranges in the legend are adjusted to the annual inflation rate in The Netherlands.

Housing prices in Amsterdam have doubled in most parts of the city. Notice how the prices in Amsterdam reached a low in 2013 after the financial crisis. I’ve posted before about how Dutch housing prices dropped a total of 20% from 2008 till 2013. It’s which was It’s easy to spot the boom bust and now boom home price in Amsterdam in this visualisation.

Charts via https://maps.amsterdam.nl/woningwaarde/ .gif made by me.

Huizenprijzen Amsterdam gif. Housing prices Amsterdam gif. Home prices Amsterdam. House prices Amsterdam. Property value Amsterdam.
Animation of the annual change in house prices in euro in Amsterdam per square meter (m2) based on the sale price