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Persistent crisis in the Danish housing marketMonday, 14 November 2011
Housing prices in Denmark have now fallen so much that more than 25 percent of apartment owners are forced to sell at a loss if they do it now. Equity has been wiped out of most properties and this worrying to an economy that relied some much on real estate.
AdvertisementAccording to Danish daily, Jyllands-Posten, the losses can be over 20 percent in the worst case. Experts who talked to Jyllands-Posten said that the development will probably get worse and that the Danish housing market will be in stagnation for several years.
Danes traditionally usually start their real estate ownership with apartment and then move to a detached house or townhouse when they start making families. This market is now disappearing, because people who have mortgages can not sell the apartment for a loss. They will therefore be left as prisoners in their apartment. The average price per square meter for the Danish law was that no more than Dkr25 000 (3500 EUR) before the downturn began 2006.
In Copenhagen, the average price now is just over Dkr 30 000 (4200 EUR), according to Danske Bank. Prices recovered slightly last year, but this year has has seen continued persistent fall again.
Last month the average price per square meter was around Dkr18,350 (2,565 euros) in the country and Dkr21,100 (2,950 euros) in Copenhagen.
By Scancomark.se Team
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