Dutch Home Prices Surge to All-Time High in January

(MENAFN) House prices across the Netherlands surged to an all-time high in January, propelled by a deepening housing shortage, sluggish construction activity, and growing household incomes, official data published Monday revealed.

The average cost of an existing property reached €493,875 ($533,000), representing a 5.4% jump compared to the same period last year, according to figures released jointly by Statistics Netherlands (CBS) and the Land Registry.

Month-on-month, prices ticked up a further 1.2% from December, a Dutch online newspaper reported.

"The price increase is mainly due to the tight housing market. There is high demand and low supply, and this trend is continuing. We see this across the country," CBS economist Marjolijn Jaarsma said.

The chronic shortfall in available properties has left prospective buyers locked in fierce competition, with bidding wars routinely pushing final sale prices well beyond initial asking figures. Compounding the crisis, residential construction has fallen short of government benchmarks for the third year running, further tipping the balance against buyers.

Approximately 80,000 homes were completed throughout last year — a figure that trails the government's stated annual target of 100,000 units by a significant margin, offering little indication that relief is on the horizon for an increasingly strained market.

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