Dutch residential housing prices reach all-time high as mortgage delinquencies continue to decline AMSTERDAM, 09 August 2018 - Dynamic Credit, the fixed income asset management and direct lending firm, published its quarterly update on the Dutch residential mortgage market today, The report shows that during the second quarter of 2018 Dutch housing prices are up 1.8% QoQ and 8.8% YoY. The firm confirms that housing prices in the Netherlands now exceed their pre-crisis peak of August 2008.* The report also shows a decrease in the percentage of borrowers in arrears on their mortgage loan. This decline is particularly evident in the province of Flevoland, where delinquency rates have decreased by 75% from 1.23% to 0.31% over the last 4 years.
Jasper Koops, Portfolio Manager at Dynamic Credit:
“With the Dutch economy growing and unemployment nearing its pre-crisis low, we can more clearly see the positive effect on mortgage delinquencies in the Dutch mortgage market, which continue to decrease. Our research shows that during economically favorable times, provinces are more likely to perform similarly, with larger discrepancies more apparent during less favorable economic climates.”
Dynamic Credit believe the nominal all-time high in housing prices is fueled by the persisting shortage of housing supply. Efforts are being made to address the housing shortage and Minister of the Interior and Kingdom Relations, Kajsa Ollongren, along with several interest groups, have signed the National Housing Agenda, which sets a target to construct 700,000 new homes before the end of 2025. It is hoped that the new homes will not only ease the existing housing problem, but will also provide relief in the coming years, as the number of households continues to grow.
Dynamic Credit report that the second quarter of 2018 saw mortgage rates decrease, with the average decrease across all major risk classes and major fixed rate periods 0.08% Q-o-Q. On average, spreads generally remained unchanged because the decrease in mortgage rates matched that of the swap rates. For the full report, please use the contact details provided below.
*Figures calculated on a nominal basis
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About Dynamic Credit
Dynamic Credit is a fixed income asset management and direct lending firm. Founded in 2003, Dynamic Credit has offices in Amsterdam, New York and Jakarta. Dynamic Credit manages (securities of) loans of others and its own proprietary direct lending.
In December 2017 Dynamic Credit entered into a strategic partnership with Aegon, who has become a 25% shareholder of Dynamic Credit. The partnership enables further growth into new lending products, like SME and buy-to-let loans.
The team of experts at Dynamic Credit have extensive experience valuing, sourcing, creating and managing alternative fixed income products. In 2015, Dynamic Credit set up the first online mortgage distribution platform of the Netherlands (bijBouwe). In June 2016, Dynamic Credit launched the LoanClear loan portfolio surveillance platform and marketplace. In August 2017, Dynamic Credit launched the Dynamic Credit Funds ICAV, an Irish AIFM regulated fund umbrella.
Dynamic Credit is fully licensed and is regulated by Dutch, Irish and Indonesian financial market authorities.