Danes going for smaller homes in wake of price spike

Far fewer homes under 150 sqm on the market last month compared to five years ago

A decade of rising property prices have prompted the Danes into taking a more reserved approach when hunting for a new house.

A new survey from property portal Boligsiden.dk showed that Danes are increasingly opting for smaller homes compared to what they preferred in recent years.

“In connection with rising housing prices, there are some who think ‘I could manage with 140 sqm instead of 190 sqm’,” Birgit Daetz, the head of communications for Boligsiden.dk, told Metroxpress newspaper.

“Additionally, more people are aware they need to be able to afford their fixed bills, such as energy expenses and taxes, which are influenced by the size of the house.”

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Bank apply the brakes
Daetz believes the Danish penchant for smaller homes will maintain its upward trajectory in the future thanks to the continuing hefty price hikes per sqm – particularly in urban areas.

More specifically, the figures showed there were 16,688 houses under 150 sqm for sale last month – well below the almost 22,000 for sale in October 2012.

Another reason for the rising popularity of smaller homes could be attributed to the tougher banking protocols installed in the wake of the most recent financial crisis.

“It’s become more difficult to find financing and that’s put the brakes on the market for larger homes. Credit policies have become more stringent and it’s a different time now compared to before the crisis, so people have to find alternatives and that could mean compromising on size,” Mikkel Høegh, a housing economist with BRF Kredit, told Metroxpress.