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Property sales increase in Denmark along with house prices

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Ritzau/The Local - [email protected]
Property sales increase in Denmark along with house prices
There were 1,366 more owner-occupied apartments for sale in Denmark at the end of June 2022 compared to June 2021. Photo: Mathias Svold/Ritzau Scanpix

There has been an increase in the number of homes put up for sale in the last year in Denmark, along with an increase in prices, according to the latest property news.

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According to Finans Danmark, at the end of June this year, there were 25,239 detached (parcelhuse) and terraced houses (rækkehuse) for sale, which is 2149 more than this time last year.

There were also 6,864 owner-occupied apartments (ejerlejligheder) for sale at the end of June, which is 1,366 more than the previous year.

Despite the increase, there are still relatively few houses for sale compared with previous levels, according to Finans Danmark,

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In theory, an increase in homes for sale can mean lower house prices, due to the buyer having more choice, but that is not the case this year.

According to Finans Danmark, an average house of 140 square meters costs around 2.8 million kroner, which is just over 175,000 kroner more than a year ago.

An average owner-occupied apartment of 80 square metres costs around 3.2 million kroner, which is an increase of almost 120,000 kroner from last year.

The reason the average cost for an apartment is more than a house is because many apartments in Denmark are located in Copenhagen, where property prices are much higher than other parts of the country.

Properties are also on the market for a short amount of time this year, due to a high interest from buyers.

However Deputy CEO of Finans Danmark, Ane Arnth Jensen warns prospective home sellers that the rise in interest rates, as well as the cost of living in Denmark, could make it more difficult for people to finance a home.

Inflation in Denmark, the rate at which prices rise, edged up to 8.2 percent in the last 12 months, according to Statistics Denmark. This is the largest increase over a year since February 1983, when prices rose by 8.7 percent.

"This makes it more expensive to be Danish, and this may mean that fewer people can afford to match the high property prices", Ane Arnth Jensen said.

 

 

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