ING expects further increase in home sales

More apartments will be sold in the Netherlands this year and next, predicts ING Research. According to the bank's research department, this is mainly due to investors who want to get rid of their rental apartments.

Since the Affordable Rent Act came into force in July, more rental apartments have been sold. As the law stipulates maximum rents in the middle segment, it is less interesting for investors to rent out. Around 17,000 apartments were sold in the last quarter, 33 percent more than in the same period two years ago.

The housing supply is not evenly distributed by type of housing. For example, far fewer single-storey houses such as terraced and corner houses are being sold than apartments. According to ING Research, this is partly due to the fact that the market for single-storey homes is in a vicious circle. As owners want to buy a new home first before putting their own home up for sale, supply dries up faster and sustains itself. ING Research therefore expects that the increase in the number of homes sold next year will again be led by apartments.

Nevertheless, ING expects a slight increase in the number of sales of single-storey homes compared to this year. The limited supply of single-storey homes is expected to have a depressing effect on home sales next year as well. The reduced pessimism also plays a role for both types of homes, as residential consumers now have more confidence in the housing market than in 2023. According to the bank, that will contribute to more sales of homes in the coming year.

Overall, ING Research predicts that based on such increases, around 200,000 homes will be sold this year, around 10 percent more than last year. Next year, another increase is expected, but a smaller one. According to ING Research, around 205,000 homes will be sold then, 2.5 percent more than this year.

Despite expectations that home sales will increase, prices for existing homes remain high. In October, an existing home cost an average of 467,355 euros, the Netherlands Statistics Bureau (CBS) and the Land Registry report. According to mortgage advisor De Hypotheker, buyers can borrow more and more due to higher salaries and lower mortgage rates.