Housing prices in Denmark fall for the first time in ages

Trend could continue for the rest of the year, maintains expert

According to figures from the housing market index Boligsidens Markedsindeks, housing prices in Denmark fell for the first time in quite some time last month.

The average square-metre price fell by 0.2 percent in September compared to August. One expert points to market saturation as one of the reasons.

“There has been a mounting housing need that has been covered by low interest rates, which has made it possible for some people to purchase the home they’ve saved up for,” Birgit Daetz, the head of communications for housing website Boligsiden, told TV2 News.

“It’s not a fall that will shake the housing market, but it is a fall that deviates from the tendency that has persisted in recent years. Compared to the usual seasonal conditions, it could mean we can expect to see price decreases for the remainder of the year.”

READ MORE: Bubble trouble: Housing market across Denmark faces dramatic change next week

Restrictions levelled
According to Daetz, more homes have been sold this year compared to the same period last year.

The only region that saw a housing price increase in September was in mid-Jutland, where prices rose by 0.2 percent.

The news comes on the heels of the Danish financial supervisory authority Finanstilsynet and the Business Ministry moving to severely restrict banks and credit institutions from offering the types of housing loans available in the Copenhagen and Aarhus areas that don’t have fixed interest rates and monthly instalments.

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