Quarterly figures Q3 2023

Amsterdam housing market: Number of transactions rising steadily, stable price level, supply slightly down
The Amsterdam Real Estate Agents Association (MVA) provides facts about the housing market in the municipality of Amsterdam and its districts.

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Developments in supply and asking prices in the municipality of Amsterdam
During the third quarter of 2023, a total of 1,584 homes were offered on the market by MVA real estate agents in the municipality of Amsterdam. This is a decrease of 8.8% compared to the previous quarter and 1.0% compared to the third quarter of 2022. The increase in supply that we saw last year (with the exception of the first quarter of 2023) appears to be leveling off.

The median asking price for a home fell by 2.8% in the last quarter compared to the second quarter of 2023: €680,644 compared to €705,169. Compared to the third quarter of 2022, we see an increase of 4.3%. The median asking price per square meter rose by 1.7% compared to the previous quarter. Compared to the third quarter of 2022, we see an increase in the median asking price per square meter of 7.0% (€7,626 compared to €7,114).

Jerry Wijnen, chairman of MVA: "Last quarter, we questioned the origin of the increasing number of homes on offer. Were they really new homes, or were they homes that had shifted from the rental market to the owner-occupied market due to upcoming regulations? Given the current political uncertainty, we cannot yet draw any clear conclusions. What is clear, however, is that the market is crying out for more supply."

districts In the Centrum, Zuid, and Zuidoost districts, we see an increase in the total housing supply compared to the third quarter of last year. This increase varies from 3.0% (Zuid) to 18.7% (Centrum). The decline in the other districts varies from -5.3% in North to -13.7% in East. Compared to the second quarter of 2023, all districts except North (+2.6%) show a decline ranging from -1.1% (Southeast) to -15.8% (South). The total housing supply in the Center remained unchanged compared to the previous quarter.

When we look at the absolute numbers, Amsterdam Zuid has the most homes on offer (392) and Zuidoost has the fewest, namely 64.

The median asking price has risen in all districts except Southeast (-0.6%) compared to last year. The percentage varies from +2.3% (East) to +15.7% (Center). Compared to the previous quarter, the picture is mixed. Amsterdam East, South, and West show a slight decline (between -2.0% and -0.2%), while the other districts have risen compared to Q2 of this year. From +0.5% in the North district to +7.0% in the Center.

TRANSACTIONS

Developments in the number of homes sold in the municipality of Amsterdam
MVA real estate agents sold 2,000 homes in the municipality of Amsterdam during the third quarter (provisional figure). This is an increase compared to both the previous quarter (4.5%) and the same quarter last year (12.2%, from 1,783 to 2,000 homes). This means that the number of transactions is roughly the same as four years ago (2,071 in 2019).

The total median transaction price this quarter is €528,412, which is a decrease of 5.6% compared to the median transaction price in the same quarter of 2022. Compared to the second quarter of 2023, it has remained virtually unchanged.

The median price per square meter fell by 0.9% compared to the third quarter of 2022. Compared to the second quarter of 2023, the median price per square meter rose by 4.0% to €7,583 per square meter.

When we compare the median square meter prices for the different types of homes with the second quarter of 2023, we see an increase for all types of homes. Semi-detached homes show the largest increase at 18%. Apartments continue to account for the largest share of all transactions: 88.9% of all 2,000 transactions. The median price per square meter for an apartment rose by 4.0% compared to the second quarter of 2023 and amounted to €7,794.

The average selling time in the third quarter of 2023 was 28 days. This is roughly the same as the number of days a property was on the market both a quarter earlier and a year earlier.

Transactions in Amsterdam boroughs
The number of transactions in the boroughs shows a mixed picture compared to the previous quarter, ranging from -15.1% for Amsterdam East to +19.8% for South. Compared to the third quarter of last year, the picture is slightly more stable. The number of transactions is rising in all districts, with East being the only exception with a decline of -15.1%. The percentages in the other districts range from +7.3% (Center) to +30.7% (South).

Transaction prices in all city districts are lower in this third quarter than in the same quarter of 2022, ranging from -8.6% in Amsterdam West to -4.6% in Zuid. Compared to the second quarter of 2023, we also see a decline in the districts of Centrum, Nieuw-West, West, and Zuidoost (ranging from -1.5% in West to -4.1% in Nieuw-West, and a peak of -12.9% in Centrum). A slight increase of 0.6%, 0.8%, and 0.9% can be observed in the Zuid, Noord, and Oost districts, respectively.

Price per square meter in Amsterdam boroughs
With the exception of the West borough (+1.2%), the transaction price per square meter is lower in all boroughs compared to the third quarter of 2022, with the decline varying between -0.8% (South) and -8.8% (Southeast). Compared to the previous quarter, there has been an increase in all districts. The increase ranges from 2.1% for Southeast to 4.8% in Amsterdam South.

Transaction prices versus asking prices
In the municipality of Amsterdam, the average price paid for a home in the past quarter was 2.5% above the asking price. This is an increase compared to the second quarter of 2023, when an average of 1.8% more was paid for a home. This means that the difference between the asking price and the transaction price has widened slightly, but is still closer than in recent years. In the third quarter of 2022, this percentage was still 7.4%.

Of the total number of homes sold, 61.9% were sold above the asking price. Compared to the previous quarter, this represents a slight increase (in Q2 2023, the percentage was 58.3%). Comparing this with the third quarter of 2022, we see a decline, when 81.8% of homes were sold above the asking price.

In the rest of the Netherlands, we are also seeing a decline in the number of homes sold above the asking price compared to the third quarter of 2022. In Q3 of 2022, the percentage was 66%; in the third quarter of 2023, this percentage fell to 45%. Compared to the second quarter of 2023, however, there has been an increase of 6%.

Jerry Wijnen, chairman of MVA: “It is good to see that the number of transactions continues to rise steadily and transaction prices remain stable. The lack of growth in supply is causing a slight decline in the scarcity indicator, which is not a positive development. There is a structural shortage of supply in the market.

As in the previous quarter, we are hearing positive reports from our new-build real estate agents. The market is starting to pick up. In practice, however, regulations can have a restrictive effect. Decisions made at the political level do not always align with the wishes of the end user, i.e., the buyer. This remains an important point of attention.

In the city districts, the asking price and the transaction price are still close to each other. In the West district, the difference between the selling price and the transaction price is highest, at 4.8%, as in the previous quarter. In Amsterdam Zuidoost, the difference is smallest, at 0.3%.

The percentage of homes sold above the asking price has risen in all districts compared to the second quarter of this year. In all districts, the percentage is above 50% this quarter. In Amsterdam Southeast and Center, the percentage is lowest in Q3 2023 at 52.7% and 52.6%, and in Amsterdam West it is highest at 72.7%.

shortage indicator The shortage indicator for the third quarter of 2023 in the municipality of Amsterdam is 2.4, slightly lower than the previous quarter and the same period in 2022. The figure is still well below the desirable 5, which we see in a healthy housing market.

Viewed per district, the scarcity indicator shows a slightly less varied picture than in the previous quarter. The Center district has the widest choice of housing: 4.5. The least choice is in West, where the shortage indicator for the past quarter was 1.8. This is followed by Nieuw-West (2.1), Noord (2.2), Oost (2.2), Zuid (2.3), and Zuidoost (2.6).

Jerry Wijnen, chair of MVA: “We see major challenges ahead of us, which we can only solve if we all join forces. The private and public sectors will have to work together to find the right solutions. We welcome the fact that the alderman is willing to take an open-minded approach to the 40-40-20 scheme in individual cases. We can continue to write policy documents, but what we need is housing. It no longer matters what you build; there is a glaring shortage of everything."