House price rises halt as Denmark’s economic recovery falters
Strong house price increases in Denmark in early 2010 were not sustained in the second half. Weaker economic growth, combined with banking sector problems, hit the housing market.
After rising by an average of 2.6% every quarter between Q4 2009 and Q2 2010, the average price of owner-occupied flats in Denmark fell 1.4% during Q3 2010. Nevertheless, the average owner-occupied flat price was still 6.6% higher than a year earlier, according to the Realkreditrådet (Association of Danish Mortgage Banks), at DKK18,404 per sq. m. (€2,468 per sq. m.).
In Copenhagen, the average price of owner-occupied flats was DKK23,190 (€3,110) per sq. m. in Q3 2010, up by 12.3% from a year earlier, but virtually unchanged (-0.9%) on the previous quarter. During each of the past three quarters, the price of flats in Copenhagen rose by an average of 4.25% quarterly.
