Dutch house prices climb at the highest rate since 2001

Last month, Dutch house prices soared at the fastest rate in 20 years, up 12.7% year-on-year, highlighting the failure of the coronavirus pandemic to curb the soaring residential real estate market in Europe.

The housing price issue has become a lightning rod to criticize the ECB’s ultra-loose monetary policy, and has become one of the most public concerns in its online “European Central Bank Listening” campaign as part of its strategic review.

Statistics Netherlands said on Tuesday that since April 2001, the price of owner-occupied homes hit a record high in May and has risen by two-thirds since the trough in June 2013.

House price already rise It lasted for seven years in most of Europe.The European Central Bank is in A report Data released this week showed that in the fourth quarter of last year, Eurozone house prices rose by 5.8% year-on-year-the highest growth rate since mid-2007.

According to the report, Germany, France and the Netherlands accounted for nearly three-quarters of the euro zone’s total housing price increase last year.

Rising housing prices and the shortage of affordable housing have triggered public anger against large commercial landlords in several countries.Ireland impose After a US investment fund purchased 135 of the 170 homes for sale in a development project, it levied a 10% stamp duty on people who bought 10 or more homes within 12 months.

In Germany, the plan 18 billion euro merger The dispute between Vonovia, the country’s largest residential landlord, and its rival Deutsche Wohnen has triggered calls for rent restrictions and even nationalization of these companies.

The President of the European Central Bank, Christine Lagarde, was asked about the risks of the real estate market at a hearing in the European Parliament on Monday.

“Young and middle-class families are forced to participate in fierce competition and pay exorbitant prices in the overheated real estate market,” said Michiel Hoogeveen, a member of the Dutch European Parliament who is suspicious of Europe. “This is one of the consequences of your generous funding and low interest policies in order to keep the weaker eurozone countries alive.”

Ludek Niedermayer, a member of the center-right European Parliament and former deputy governor of the Czech Central Bank, asked Lagarde: “To what extent can you conclude that asset price risks are so serious that it requires Adjust the monetary policy, otherwise you will not do it?”

In response, Lagarde stated that “there is no obvious sign that [a] Credit has promoted the real estate bubble throughout the Eurozone,” but she added that some countries, especially some cities, have “residential real estate vulnerabilities.”

Lagarde said: “The disconnect between housing prices and broader economic development during the pandemic creates the risk of price adjustments,” he called for “careful design” of macro-prudential policies, such as the state’s restrictions on mortgage loans.

As part of Strategic review, The European Central Bank may push the EU statistical agency to follow the example of other countries and include the cost of owner-occupied housing in its inflation data, although this is technically difficult and may take several years to achieve.

However, the European Central Bank President did not indicate that it may tighten monetary policy in response to the rising real estate market, and most economists also believe that this is unlikely.

Adam Slater, an economist at the Oxford Economics Institute, said: “Easy monetary conditions may push up asset prices, and eventually there may be a sharp correction.” “For the central bank, neither this result nor the continued high inflation is true. Attractive prospects.”

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