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.

Kamilla Kovacs is appearing at KoncertKirken on February 23
A debonair dozen to check out at Vinterjazz 2016!
Since last Friday, Vinterjazz has been welcoming music fans to venues all o...
Kristian Jensen met with the Tunisian president, Habib Essebi (photo: Foreign Ministry)
Denmark making inroads in Tunisia
The foreign minister, Kristian Jensen, is in Tunisia this week to meet with...
In 2016, TrygFonden will deploy lifeguards to 36 beaches across Denmark (photo: olewesth)
More lifeguards for beaches in west Jutland
More lifeguards will supervise safety on Danish beaches this summer, report...
Member states of TACET include Denmark, USA, UK, Germany, the Netherlands and Canada (photo: Denmark at NATO)
Denmark part of new NATO initiative
The defence minister, Peter Christensen, has revealed that Denmark will tak...
Mariam Mosque's imam Sherin Khankan calls it a “feminist project” (photo: Kvinfo)
Denmark gets its first mosque for women
Denmark and Scandinavia's first mosque exclusively for women has opened up ...
The airport now offers 32 intercontinental routes (photo: iStock)
Copenhagen Airport makes bright start to 2016
Copenhagen Airport has made a strong start to the year thanks to a passenge...