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.
Published: 4 September 2014 09:10 CEST
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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