The planned thousands of new apartments will not be built for the time being because there are not enough buyers. Within a year, developers pulled at least 4,694 homes from sale due to lack of interest.
According to figures from real estate association NVM and data company Brainbay, there have been a lot of people over the last few months.
Due to changing market conditions, residential towers or new housing estates planned in many places cannot be built for the time being.
Check out the six suspended projects here:
Construction companies, project developers and brokers are showing significantly less interest in new construction. The craze in the housing market is over, and the prices of existing properties are falling significantly, again due to high mortgage rates.
But the price of newly built homes usually doesn’t go down, or less so because builders have to sell them for a certain amount to make money on them. Finally, there are fixed costs such as building materials and personnel. As a result, new buildings today are relatively expensive compared to existing buildings.
“Newly built homes continue to be priced steadily in a cooling market,” says Arjan Lamberink. The brokerage firm has offices in the northern Netherlands. “Existing buildings are becoming more attractive and then it goes without saying that an older home is less energy efficient.”
From the seller’s market to the buyer’s market
“Within a few months, it went from a seller’s market to a buyer’s market. A spokesperson for Vorm construction company said it is clear that due to recent developments we are all building fewer apartments than we had hoped. The company says it always wants to see what else it can build.
More and more construction companies say they are doing whatever it takes to keep projects going, according to a tour at NOS.
“We have no pending projects,” says a spokesperson for the construction company Van Wijnen. “There are so many projects that we need to be creative.” For example, the company is building 180 apartments in Capelle aan den IJssel. 90 of these were to be sold to private individuals. “We have now sold about 60 of these to a private investor.” So these are rental properties, not purchased properties. “We are still seeing a lot of interest from investors.”
And in Amsterdam-Noord, Van Wijnen is building about 700 apartments. The municipality had additional “illegal” sustainability requirements that would have made construction more expensive. After consultation, the municipality changed these requirements. “This is one of the reasons we have managed to keep projects viable.”
build in tufts
“We rarely cancel projects in expansion areas,” says Ton van de Klok of construction company KlokGroep. This affects new housing developments in villages and towns. “For example, we do phased projects there, so we don’t implement something all at once, but in smaller batches.”
They also customize projects. “We are developing new plans, such as less single-family homes or two-person houses. And that includes cheaper townhomes that are now easier to sell.”
He states that the situation is more difficult in the so-called filling places. This often involves building in towns between existing houses. “There are land, construction and side costs. These are sometimes higher than you can sell the project. In some places we now check if we should put something on hold. And only start construction when construction costs are due.” normalized.”
own effort
There are calls for government support to allow more new construction. A project is usually only built when 70 percent of the homes are sold because then insurers will guarantee a new construction. Project developer organization Neprom says this rate will drop to 50 percent with government support. “I definitely think it’s a good idea,” says realtor Arjan Lamberink. “This way, projects can be built sooner.”
Ton van de Klok from KlokGroep would also like to see additional support offered by the national government or the states. “But in practice it gets complicated. Before such a thing could be regulated politically and legally, the market may have reversed again.
The government wants 900,000 homes added by 2030. That’s about 100,000 per year. Wirtschaftsinstitut Bau thinks we won’t be able to achieve that this year or next year. And now the more projects cancelled, the harder it gets.
The new building doesn’t just have to deal with fewer buyers. Check out other issues here:
Source: NOS
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
