How does the market react to developments in the housing sector?


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by Max Schep

Propertyimpact Strategic Advisor BESIX U-bouw Netherlands

 

[Read the article in Dutch] 

At a time when webinars are paying off, it is a relief to meet each other again in real life. This with the aim of exchanging ideas about the housing market that is dear to all of us. In the ONS building in Schiedam, Christa Thijssen (director HPP) had put together an inspiring program of speakers.

The kick-off on 24 September was provided on behalf of the municipality of Schiedam by project director Lydia Buist of Schieveste.

The first speaker, Marijn Snijders (director Capital Value) emphasized the increasing shortage of housing and the failure to connect the housing stock to contemporary market demand. A shortage that could rise to 415,000 homes in 2024. The core of his message is (despite COVID-19):

“There is enough money to invest as international, Dutch institutional and private investors are willing to pay and housing corporations also take their responsibility. For example, 26 billion euros are available for the coming years.”

Eelko Korteweg (director Greystar) gave the audience an insight into the development of their portfolio for large-scale complexes in the Netherlands, with furnished rental apartments and additional facilities. He also mapped out the difficulties encountered in the development.

Thereafter a presentation by Jeske de Lint (Head of unit Housing BZK), who paid ample attention to the government’s announced housing market policy. In doing so, she did not shy away from the dilemmas of the Nitrogen Approach Program and the pandemic. With the recently announced impulse for the construction of 70,000 homes (50% of which are affordable) it is hoped to support the goal of building more than 75,000 homes a year. In addition to new construction, additional policies should help to protect and/or stimulate target groups in rent and sale and to increase the availability of affordable housing.

The critical finale was provided by Joris Voorhoeve (Head Capital Markets of Orange Capital Partners), investor in rental housing. With the title of his contribution ‘How the government lost control of the housing market’, he put his finger on the sore spot:

“More households than homes, resulting in rents that have become inaccessible to large parts of the market. If we carry on like this, by 2030 there will be about 845,000 houses short!”

At the same time, he appealed to the government to come up with an integral and consistent policy and to take back the control that was lost through deregulation and the dissolution of the ministry. In short: Peace, Regularity and Predictability.

Between each contribution a lively discussion ensued during the afternoon, led by Wienke Bodewes. The participants gave plenty of examples of solutions that are undesirable and inhibitory. In addition to the aforementioned attention points, think of the accumulation of requirements and conditions as a result of the (too) rapidly changing government policy. The lack of an unambiguous policy at the national, provincial and municipal levels. The lack of locations for the programming of affordable housing for starters and senior citizens, etc.

In conclusion, it was an excellent COVID-19-responsible meeting. All important, relevant and developing parties were present, listened to each other and discussed the opportunities, threats and solution directions. The conclusion is that a first small step has been taken to work together on the increase in housing production desired by all parties. In conclusion, a compliment is due to all those involved in the organization and implementation.

Ir. Max Schep
Propertyimpact Strategic Advisor BESIX U-bouw Nederland