Real estate market in Denmark cooling down

Rising interest rates partly responsible

This August, one square metre in an apartment sold for 24,607 kroner, 11.8 percent more than the same time last year (photo: iStock) This August, one square metre in an apartment sold for 24,607 kroner, 11.8 percent more than the same time last year (photo: iStock)
September 9th, 2015 5:21 pm| by Lucie Rychla
facebooktwittergoogle_pluspinterestmail

After a steep increase in the spring, apartment prices in Denmark are slowly levelling off.

According to figures from Boligsiden, a 0.2 percent price increase was recorded in August nationwide, compared to a staggering 3.1 percent in April.

“Sales prices increased significantly, especially at the beginning of the year when interest rates fell and hit a low. This prompted many people to buy and the higher demand caused prices to rise,” Birgit Daetz, the communications manager at Boligsiden, told Berlingske Business.

“But when interest rates began to rise again, the increase in sales prices stopped and the price curve levelled off.”

Still more expensive than last year
In August, the selling price for an apartment was 24,607 kroner per square metre, some 11.8 percent more than in August 2014.

Selling prices for residential houses have also been slowly decreasing and in August they actually fell by 0.3 percent compared to the previous month.

Despite the decline, a villa or a townhouse sold for an average of 12,313 kroner per square metre in August still represents an increase of 7.9 percent in comparison to the same month last year.