Prices for newly-built homes up 9.3% in 1st quarter; Strongest increase in over 2 years

Prices for newly-built homes increased by an average of 9.3 percent in the first three months of this year. That is the sharpest increase for newly constructed homes in over two years, according to new figures from Statistics Netherlands (CBS), the Land Registry, and Eurostat.

New homes had an average sales value of over 504,000 euros in the first quarter. Existing homes also became more expensive, rising by almost 11 percent. The average sales value of an existing home was 470,000 euros.

Home prices in the Netherlands are rising faster than the European average. The average price increase for new and existing homes combined in the Nehterlands was 10.7 percent compared to last year. This is well above the European average of 5.7 percent.

The total number of newly built homes sold in the first three months of this year rose by over a quarter compared to a year earlier. Nearly 6,200 newly constructed homes were sold in the first quarter, over 28 percent more than in the same period last year. This marks the sixth consecutive quarter of increased new home sales. Sales of existing homes increased by almost 16 percent.

CBS previously reported that the number of construction permits issued for residential properties had fallen again in the first quarter, following a rebound last year. According to the statistics office, this indicates that not enough new homes will be built to meet the enormous demand for housing for the foreseeable future.