According to the latest figures from Statistics Denmark, apartment prices fell close to 2% in July 2018, while house prices rose 0.1% from the level in June 2018 – and a number of indicators point to this trend continuing into the autumn.
Trend attributable to price levels and limitations on loan types
Weakening apartment prices, particularly in Copenhagen, should be viewed against both the high levels prices had reached – for example, you have never before been able to save as much by swapping an apartment in Copenhagen for a house in Western Zealand – and the limitations placed on buyers’ options with regard to loan types since the start of the year, which have dampened buyer interest. This is also reflected in the decline in sales activity, with the market for project sales seeming to be under particular pressure. Moreover, the number of apartments on the market has increased markedly since the start of the year and is now 50% higher than one year ago. Nevertheless, sales activity is still at a high level, and while the number of apartments on the market has increased, it is still considerably lower than during the crisis.Louise Aggerstrøm
Senior Analyst, Danske Bank