‘Perfect storm’ seriously threatens the housing market
The number of offered and sold new-build homes in the first quarter of 2022 appears to have fallen back to the level as it was shortly after the credit crisis (2008-2013). In addition, the number of new build homes for which a building permit was granted in the first five months of 2022 was about 15% lower than in the previous year. In the owner-occupied sector, this is even more than 20%. Rising capital interest rates, shifts in emphasis in construction policy and withdrawal of investors are putting further pressure on plan exploitation. As a result, renegotiations, redevelopment and a further slowdown in new-build production are occurring. In our view, all the above developments are the ingredients for a 'perfect storm' in the new-build market.
The thirty-eighth Sales Housing Market Monitor for the second quarter of 2022 was presented on Friday 5 August by the Housing Value Expertise Centre, part of TU Delft's Faculty of Architecture and the Built Environment.
Read the full article here in Dutch.