Quarterly figures Q2 2024

Amsterdam housing market: Increase in supply does not yet cover it, confidence in market is unprecedented.

The Makelaarsvereniging Amsterdam (MVA) provides facts about the housing market in the city of Amsterdam and its districts.

ADVERTISEMENT

Developments in supply and asking prices in the municipality of Amsterdam
The number of homes currently being offered on the market by MVA real estate agents in the municipality of Amsterdam rose by 56.2% in the second quarter of 2024 compared to the previous quarter, to 1,998 homes. We see an increase from the first to the second quarter almost every year, but this percentage increase is significant. This number has not been this high in the second quarter in the past eight years, with the exception of the number offered in 2020 (2,008). There has also been an increase in the number of homes offered compared to a year earlier, namely 10.7%.

The median asking price for a home in the municipality of Amsterdam fell in the last quarter compared to the first quarter of this year: from €717,322 to €714,659. Compared to the second quarter of 2023, we see an increase of 4.8%. The median asking price per square meter in the second quarter of 2024 is €7,836, an increase of 3.0% compared to the previous quarter. When we look at the second quarter of 2023, we now also see an increase in the median asking price per square meter, namely 5.8%.

Jerry Wijnen, chairman of MVA: "We are seeing more movement in the housing market compared to last quarter. This increase is mainly due to the fact that more people have put their homes up for sale. One of the reasons for this is that property investors are deciding to sell their rental properties after the tenant has given notice. Buyers also no longer feel that prices will fall in the coming period and are getting back into the market.
Confidence in the Amsterdam housing market remains unprecedentedly high because relatively few homes are being built and mortgage interest rates are falling slightly again. The number of viewings and the number of bids per property have increased significantly again this quarter. Twenty to thirty viewings per property is once again not unusual."

City districts

In all districts, we see an increase in the total housing supply compared to the first quarter of 2024. The increase varies between 24.4% in Amsterdam Zuidoost and 92.9% in Amsterdam West. Compared to the second quarter of 2023, the picture is somewhat more varied. We see an increase in most districts ranging from 5.5% in Amsterdam Oost to 30.5% in Centrum. In Nieuw West, Weesp, and Amsterdam Southeast, there has been a decrease of -1.0%, -14.5%, and -30.1%, respectively, compared to the second quarter of last year.

Looking at the absolute numbers, Amsterdam Zuid had the most homes on offer in the past quarter with 506, while Amsterdam Zuidoost had the fewest with 45.

The median asking price in the second quarter of 2024 shows an increase for all districts compared to the same quarter last year. Compared to the previous quarter, Amsterdam Zuidoost, Centrum, and Zuid show a decrease (respectively -1.5%, -2.2%, and -4.0%). The other districts show an increase of between 2.0% and 4.3%.

TRANSACTIONS

Developments in the number of homes sold in the municipality of Amsterdam
MVA real estate agents sold 2,208 homes in the municipality of Amsterdam during the second quarter (provisional figure). This is an increase of 40.4% compared to the previous quarter and 11.0% compared to the second quarter of 2023 (from 1,989 to 2,208).

The total median transaction price for this quarter is €612,387, which is an increase compared to both the previous quarter and the same period last year, namely 9.8% and 16.6%. This transaction price is the highest in comparison with the past seven years. It is just above the level of the second quarter two years ago (2022), when the amount was just under €612,000.

The median price per square meter per transaction has risen compared to both the second quarter of 2023 and the first quarter of 2024. Compared to the previous quarter, the median price per square meter has risen by 4.2%, and compared to a year earlier, by 14.0%. The price per square meter for the municipality of Amsterdam is €8,222, which is the highest price level in the past seven years.

When we look at the median square meter prices per housing type, we see a decline in prices for semi-detached and detached homes compared to a quarter ago. Compared to a year ago, we only see a decline in the median square meter price of -0.5% for semi-detached homes.
Apartments still account for the majority of transactions in the municipality of Amsterdam: 1,900 of the 2,208 transactions. Compared to a year earlier, the number of detached homes sold increased by 48.4%.
The selling time in the second quarter of this year was 26 days. Both in the previous quarter and in the second quarter of 2023, the selling time was 2 days longer.

Transactions by city district

Compared to the previous quarter, all districts saw an increase in the number of transactions in the second quarter of 2024, ranging from 21.7% (Center) to 81.5% (East). Compared to a year earlier, we see a mixed picture in the number of transactions in all districts. It varies from -4.2% for Amsterdam East to as much as 26.9% for Amsterdam South.

Transaction prices in all city districts in the second quarter of 2024 are higher than in the second quarter a year ago, varying between 0.1% (Center) and 24.5% (Weesp). Compared to the first quarter of 2024, we see a decline in the city districts Center (-1.0%), North (-1.8%), and Weesp (-4.3%). In the other city districts, the transaction price rises between 4.7% and 14.0%.

Price per square meter in city districts

The transaction price per square meter in the second quarter of 2024 is higher in all districts compared to both the previous quarter and a year earlier. The increase compared to Q1 of this year varies between 0.1% (Southeast) and 7.9% (South). And the increase compared to Q2 of 2023 ranges from 8.9% in Amsterdam Center to 18.0% in Weesp. The highest price per square meter can be found in the Center, at €9,495, slightly higher than the average for the municipality of Amsterdam of €8,222, closely followed by South at €9,489.

Transaction prices versus asking prices

In the second quarter of 2024, an average of 8.2% above the asking price was paid for a home in the municipality of Amsterdam, while in the previous quarter, 5.4% above the asking price was paid. This percentage has also risen compared to the second quarter of 2023, when an average of 1.7% more was paid for a home.

Of the total number of homes sold in the second quarter of this year, 79.9% were sold above the asking price. This is an increase compared to the previous quarter, when the figure was 73.4%. If we compare this figure with the second quarter of 2023, we also see an increase, when 57.2% of homes were sold above the asking price.

The rest of the Netherlands has also seen an increase in the percentage of homes sold above the asking price. In the second quarter of 2024, that percentage was 67%, compared to 56% in the previous quarter and 39% in the same quarter a year ago.

Jerry Wijnen, chairman of MVA: "Because many sellers are setting lower asking prices and outbidding has become the norm, it is becoming increasingly difficult for home buyers. After all, what is a realistic offer to make on a home that is for sale?
In addition, there are now buyers who are making offers that are equal to the maximum they can pay, but this offer is not always in proportion to the actual price of the home.
Because private buyers do not have access to the most recent transaction data, it has also become more difficult for them in the housing market. As a result, real estate agents are seeing the number of purchase transactions rise again. We cannot emphasize enough that hiring professional guidance is and remains a more than worthwhile investment.

In all districts, the difference between the selling price and the asking price has increased compared to the first quarter of 2024. In the West and East districts, the difference between the selling price and the asking price is highest at 10.7%.

The percentage of homes sold above the asking price is rising in all districts compared to Q1 of this year, with the exception of Weesp, where 57.6% are now being sold above the asking price, compared to 67.3% in Q1. The percentage is highest in West, at 87.8%. In Centrum and Weesp, 64.1% and 57.6% respectively are sold above the asking price, while in all other districts the percentage is above 75%.

Shortage indicator

The shortage indicator rose from 2.4 to 2.7 in the municipality of Amsterdam in the past quarter. That is the same level as a year ago. Still well below the desirable 5, which we see in a healthy housing market.

The Centrum district still offers the most choice, with a scarcity indicator of 4.9. Amsterdam Zuidoost offers the least choice, with a scarcity indicator of 1.5. In East and North, it is 2.2. In West, Nieuw-West, and Weesp, it is 2.4, and in Amsterdam South, it is 2.8. This shows that in most districts, there are still few options for homebuyers. The scarcity indicator remains roughly the same for each district compared to previous quarters.

Jerry Wijnen, chairman of MVA: "Because bidding wars have become the norm again in the existing housing market and competition in this market has also increased once more, the new-build market is back in the spotlight for house hunters. In addition, the purchase prices of existing and new-build homes have converged, which is why buyers are now consciously opting for new-build homes again.
The confidence that the current home still to be sold will yield more over time towards the completion of the new-build home hasalsoled to greater uptake of new-build homes.
We are also seeing a great deal of intensity among market players to bring projects that were previously put on hold back onto the market at an accelerated pace.

We express our hope that our new cabinet will once again see developers and investors as the solution to solving the major housing shortage. Because the housing shortage is still unprecedentedly large and far too many people still have no prospect of finding suitable housing. In recent years, politicians have put a lot of energy into concluding covenants and housing deals, but we hope that our new government will actually take steps to increase construction activity, because there is an incredible need for it.