DATAFILE: The Netherlands
Overseas property investment often focuses on far-flung island living, and sunny destinations, but there is money to be made in less glamorous areas as well. This week’s datafile takes a look at the Dutch property market, which was hit by the global recession. Is it recovering?
Property Prices
Well, no, according to the latest data. After seeming to be back on track during the first half of last year, with a 5% increase in median prices for Q1 and Q2, in Q3 the price gains paused 0.53% down on their 2009 level, according to Statistics Netherlands.
Adjusted for inflation, this equals a 2.10% drop. The unstable prices have let to buyers postponing their purchases, causing a 2.5% fall in sales transactions, and an increase in the amount of time taken for a property to be sold to 129 days.
Graph from Global Property Guide
Rental yields
According to research from Global Property Guide, rental yields on apartments in Amsterdam are about 6% for a 70 square metre property. The larger the apartment, the lower the gross rental yield.
Chart from Global Property Guide
The economy
According to Global Property Guide, “The Dutch economy is recovering from recession only slowly. During the first quarter of 2010, GDP rose by 0.60% year-on-year. Growth continued in Q2 2010, up 0.70% from a year earlier. So the country is out of the recession, which began during the last quarter of 2008, during which the economy shrank 3.9%.”