Klaas Knot: Hot property - the housing market in major cities

Introduction speech by Mr Klaas Knot, President of the Netherlands Bank, at the DNB High-Level Seminar, Amsterdam, 24 May 2018.

The views expressed in this speech are those of the speaker and not the view of the BIS.

In his opening speech at the DNB housing market seminar, Klaas Knot shares his view on how housing prices can become a problem for broader economic wellbeing, and thus form an area of interest to central bankers. A more balanced and suitable supply of housing is needed. The new Dutch housing agenda is a promising example of the leading role our government should play on the Dutch housing market.

Distinguished guests,

Welcome to Amsterdam!

The city with the highest house price rises in the Netherlands and, last year, also in the Eurozone. I live here, so I have witnessed the soaring prices at first hand. Amsterdam, like many capital cities, has led the rebound in the Dutch housing market, which started in 2013. Prices here began to take off, and within a few years were growing at annual rates of over 15%. It is the same story in other large cities in the Netherlands. And more recently, the rest of the country has followed this trend, so house prices are rising everywhere.

My work takes me all over the globe, to the world’s major cities. Many of you come from these cities, in Europe: London, Paris and Stockholm, but also Washington, Seoul and Sydney.