Expert tips for buying or selling a home in Denmark in 2024
New tax rules mean the Danish housing market is set for a shake-up next year. Experts have offered valuable tips on navigating the changing property market in 2024.
Set to roll out in the upcoming year, new rules will lead to fundamental shift in how property taxes are calculated and applied.
READ MORE: What do homeowners need to know about new Danish property tax rules?
The upcoming changes mean that taxation will be based on new assessments of land and real estate values.
These valuations, reflecting higher property values due to recent increases in housing prices, will serve as the foundation for the new property tax rates.
To ensure a smoother transition and prevent potential tax hikes, the Danish authorities have introduced subsidies.
This safeguard means that, in 2024, existing homeowners need not worry about higher property tax burdens compared to what they would have paid under the previous tax regime.
However, the tax subsidy will not extend to new homeowners entering the market starting January 1st, 2024.
This change has added considerable buying pressure in the market, particularly for first-time buyers, leading to a recent surge in housing sales, especially in larger cities.
READ MORE: What will happen to house prices in Denmark in 2024?
Advice for sellers: Wait for the market to stabilise so you don't get a bad deal
People planning to sell their apartments in the new year should be prepared for the possibility that prices may not reach the highs seen at the end of 2023.
Curt Liliegreen, director of the Housing Economics Knowledge Centre, told DR that sellers may need to lower prices.
According to Liliegreen, selling an apartment might become more challenging after the New Year.
Buyers may expect a price drop of around five percent, potentially more in cities like Copenhagen and Aarhus. This price adjustment is likely to happen gradually over six months.
With the expectation of a price drop, housing economist Mikkel Høegh from Jyske Bank advised sellers to wait until later in the year to list their properties.
"Those looking to sell should exercise patience until the market stabilises and establishes new conditions. Selling in the middle or towards the end of the year is likely to yield better results compared to the beginning when there's some market saturation and uncertainty about the new price levels," he said.
Advice for buyers: There could be good deals, at the cost of a higher tax outlay
While there has been a surge in the sale of apartments recently, Liliegreen thinks buyers should exercise patience and wait for a price drop – if they can.
While the drop may not be dramatic, it is expected to occur, and rushing into a purchase right after the New Year may risk the property losing value.
READ ALSO: What prospective homebuyers in Denmark can expect in 2024
At the same time, experts have also cautioned both buyers and sellers against making decisions based solely on interest rate predictions.
Whether you need a quick sale or plan to wait for a few years, predicting the exact timing of interest rate changes is always challenging.
Therefore, Liliegreen thinks both buyers and sellers should consider their immediate needs.
The new housing tax coming into effect from the New Year means buyers in major cities should be prepared to put aside more money for taxes.
Still, according to housing economist Høegh, 2024 could be a good year to purchase an apartment.
"It will be a different market with different tax rules," he said, adding that buyers should, therefore, be ready to wait for a good opportunity.
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Set to roll out in the upcoming year, new rules will lead to fundamental shift in how property taxes are calculated and applied.
READ MORE: What do homeowners need to know about new Danish property tax rules?
The upcoming changes mean that taxation will be based on new assessments of land and real estate values.
These valuations, reflecting higher property values due to recent increases in housing prices, will serve as the foundation for the new property tax rates.
To ensure a smoother transition and prevent potential tax hikes, the Danish authorities have introduced subsidies.
This safeguard means that, in 2024, existing homeowners need not worry about higher property tax burdens compared to what they would have paid under the previous tax regime.
However, the tax subsidy will not extend to new homeowners entering the market starting January 1st, 2024.
This change has added considerable buying pressure in the market, particularly for first-time buyers, leading to a recent surge in housing sales, especially in larger cities.
READ MORE: What will happen to house prices in Denmark in 2024?
Advice for sellers: Wait for the market to stabilise so you don't get a bad deal
People planning to sell their apartments in the new year should be prepared for the possibility that prices may not reach the highs seen at the end of 2023.
Curt Liliegreen, director of the Housing Economics Knowledge Centre, told DR that sellers may need to lower prices.
According to Liliegreen, selling an apartment might become more challenging after the New Year.
Buyers may expect a price drop of around five percent, potentially more in cities like Copenhagen and Aarhus. This price adjustment is likely to happen gradually over six months.
With the expectation of a price drop, housing economist Mikkel Høegh from Jyske Bank advised sellers to wait until later in the year to list their properties.
"Those looking to sell should exercise patience until the market stabilises and establishes new conditions. Selling in the middle or towards the end of the year is likely to yield better results compared to the beginning when there's some market saturation and uncertainty about the new price levels," he said.
Advice for buyers: There could be good deals, at the cost of a higher tax outlay
While there has been a surge in the sale of apartments recently, Liliegreen thinks buyers should exercise patience and wait for a price drop – if they can.
While the drop may not be dramatic, it is expected to occur, and rushing into a purchase right after the New Year may risk the property losing value.
READ ALSO: What prospective homebuyers in Denmark can expect in 2024
At the same time, experts have also cautioned both buyers and sellers against making decisions based solely on interest rate predictions.
Whether you need a quick sale or plan to wait for a few years, predicting the exact timing of interest rate changes is always challenging.
Therefore, Liliegreen thinks both buyers and sellers should consider their immediate needs.
The new housing tax coming into effect from the New Year means buyers in major cities should be prepared to put aside more money for taxes.
Still, according to housing economist Høegh, 2024 could be a good year to purchase an apartment.
"It will be a different market with different tax rules," he said, adding that buyers should, therefore, be ready to wait for a good opportunity.
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