Amsterdam’s Attempt to Rein In Property Prices Just Got Harder

(Bloomberg) --

After a brief lull, Amsterdam’s housing market is on the rise again.

The median price climbed 4.4% to a record 481,000 euros ($534,000) in the fourth quarter from a year earlier, according to the NVM association of real estate agents. That was the first increase in three quarters.

A rapid increase in living costs in recent years has prompted the local government to intervene in the market. The city, in cooperation with the national government, has laid out plans to make it easier for low- and middle-income households to gain access to affordable housing.

As well as increasing the number of available properties, the Dutch capital is exploring the possibility of preventing owners from renting out newly built homes. The goal is to discourage investors from keeping middle-class buyers out of the market by snapping up apartments.

Across the country, property prices surged 8% in the fourth quarter from a year earlier to 326,000 euros. They gained 3.3% from the previous three months, compared with a 6.9% increase in Amsterdam.

To contact the reporter on this story: Ruben Munsterman in Amsterdam at rmunsterman1@bloomberg.net

To contact the editors responsible for this story: Dale Crofts at dcrofts@bloomberg.net, Andrew Blackman, Patrick Henry

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