Apartment prices reach pre-crisis levels

Driven mainly by the housing market upswing in Copenhagen, apartment prices are a full nine percent higher than last year and are increasing faster than the prices of single-family homes.

Apartment prices reach pre-crisis levels
Photo: Colourbox
Apartment prices have reached their highest level since July 2007 according to Statistics Denmark. 
From May to June, apartment prices increased by one percent while the price of single-family homes fell by 0.9 percent. Apartment prices in the second quarter of 2014 were a full nine percent higher than the same period last year, while single-family home prices rose by just 3.2 percent over the same period. 
The average sale price for a flat in June was 1.911 million kroner ($337,000) and the average price for a single-family home as 1.938 million kroner ($342,000). 
The Copenhagen market is largely to blame for the nationwide price increases. 
“[The price increase] is due to the fact that interest rates are very low, assessed valuations are frozen, there has been an influx to the city and, last but not least, an expectation that prices will increase in the city,” Lone Kjærgaard, the chief economist at Arbejdernes Landsbank, told TV2 News. 
Numbers from the Association of Danish Mortgage Banks showed over the summer that the housing market in Copenhagen was on a steady incline, while prices in other parts of the country had dropped considerably. 

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Copenhagen nature area to be developed as city approves land sale

A part of the Amager Fælled nature area has lost its reserve status and can now be sold to investors, after a majority in the city's municipal council voted in favour of development on Thursday.

Copenhagen nature area to be developed as city approves land sale
Amager Fælled. File photo: Asger Ladefoged/Ritzau Scanpix

The 219,000 square-kilometre area, known as Lærkesletten, can be sold to developers who wish to build homes on the land, broadcaster TV2 reported.

The sale raises money needed by the city to pay for the new Metro lines, which opened last year, and was part of a political deal agreed in 2017.

City councillors from the Social Democrats, Social Liberals, Liberals, Conservatives, Danish People's Party and two independents voted in favour, while Red-Green Alliance, Alternative and Independent Green parties and one independent opposed.

Located on the southern edge of the natural area on island Amager, the area is frequently used by people from the city for cycling, running and walking.

“We have seen that nature and the environment are at the centre of the public’s perception of what’s important. They want real wild nature in Denmark,” Gorm Anker Gunnarsen, who represents the Red-Green Alliance on the city council, told news agency Ritzau.

An Epinion survey this week showed that 76 percent of people who live in Copenhagen are either partly or completely against development of the area.

Gunnarsen told Ritzau he still believes there is a chance of preserving the nature zone.

“We have the authority to withdraw a building permit in special circumstances,” he said.

An advisory public vote could on the matter provide the basis for this, he argued.

“This case will not then just rest on which party you are with, but also on your view of the individual case,” he said.

READ ALSO: Copenhagen natural area Amager Fælled gets new development plan