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Danish house prices reach highest ever level, beating 11-year record

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Danish house prices reach highest ever level, beating 11-year record
File photo: Mathias Løvgreen/Ritzau Scanpix
10:47 CET+01:00
House prices in Denmark have never been higher, with the cost of a buying home now above the previous record set in 2007.

Finance Denmark, an interest organisation for the banking and financial services industries, published the new figures which show house prices to have reached an all-time high.

House prices increased by 4.2 percent nationally in 2018, with the average price of a 140-square-metre-house reaching 1,923,000 kroner (257,000 euros).

The price represents the highest figure for the category since records began in 1992.

“The housing market is doing well, and houses are now being sold for the highest prices ever. Prices are increasing in most of the country and plenty of sales are being completed,” Nordea housing market economist Lise Nytoft Bergmann stated in a written comment.

“We expect this positive trend to continue and house prices to continue to go up in 2019 and 2020,” Bergmann added.

A steep regional variation can be seen in Denmark’s house prices, with the price of a 140-square-metre-house in Copenhagen over 5 million kroner, compared to 1.2 million kroner in western Jutland and 990,000 kroner on the Baltic Sea island of Bornholm.

But although the current prices are at a higher amount than anything previously recorded, actual value is 14 percent lower than in 2007, due to inflation.

The housing market is considered to have been overheated in 2007, the year prior to the global financial crisis. But Bergmann said she did not see the same economic warning signs in the current market.

Lower interest rates mean that mortgages are effectively cheaper than they were 12 years ago.

Additionally, Danes have, on average, better salaries than they did in 2007, improving their chances of being able to finance the purchase of a home.

READ ALSO: Increase in apartments for sale in Copenhagen: report

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