Every fifth CPH apartment sells for more than the asking price – The Post

Every fifth CPH apartment sells for more than the asking price

New figures reveal that 18 percent of Copenhagen apartments sell for more than expected

Flat prices may be on the rise, but there is no reason to worry, says expert (Photo: Flickr)
June 26th, 2015 11:32 am| by Alexandra Pedersen

More than 18 percent of apartments in Copenhagen are sold for over the asking price, reveals new figures from housing portal Boliga.

That is almost double compared to the same quarter last year, and ten times higher than in 2011, Berlinske Business reports.

Curt Liliegreen, head of the secretary at Housing Economy Knowledge Centre, explains that the development is due to especially good finance options and the option for an equity bonus.

“It has been a period with really good options for great purchases. You were able to get a loan with a fixed rate at two percent, and a value close to 100,” Liliegreen told Berlinske Business.

“You were also able to purchase an apartment in Copenhagen with good chances that the equity would rise.”

Not to worry… 
The drastic rise in real estate prices may be a warning sign, but Liliegreen asserts that there isn’t necessarily reason to worry about a ‘housing bubble’.

“I don’t see a ‘housing bubble’ situation in this,” he said.

“We are still far from the numbers from 2006 if you take inflation into consideration. The rise in prices doesn’t reflect a ‘real estate bubble’.”