Dutch property values fall further

12 August 2009

The pace of property price falls in Holland gathered speed in Q2 2009, compared to the previous quarter, according to the ROZ/IPD Netherlands Quarterly Property Index.

The study shows the average value of a property in Holland fell 2.1% in the second quarter of this year, up from a fall of -1.5% during the first three months of this year.

However, the property price falls recorded in Q2 2009, are still an improvement on the -3.7% decline posted in Q1 2008.

On an annual basis, the average price of all properties – residential and commercial – fell 7%, with residential property values down -6.7% at the end of Q2 – a substantial fall for such a historically steady property market.

The fall in property values, combined with greater rental pressure, has lead to an increase in rental returns, with the average residential yield appreciating by 10 basis points to 4.7%, the report said.

ROZ director Aart Hordijk said: “In respect of the residential sector, this illustrates that those investors which bought properties using high leverage have pulled back from this market and this is now reflected in the price adjustments we have seen.”

See Also:   Holland, Marc Da-Silva, Overseas property investor news