Fewer ‘hobby investors’ in the housing market
The government’s tightening of controls in the housing market seems to have worked, according to new figures from the capital.
The average age of buyers of small apartments in Oslo rose by three years during the period between 2011 and 2016. New figures from the company, Eiendomsverdi, show that new, stricter requirements being imposed have caused several investors to withdraw from the housing market.
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‘If the purpose of the mortgage regulation was to get fewer investors in the market, they have succeeded. This confirms what the brokers say, namely that investors are absent from viewings’, said analyst, Anders Lund, of Eiendomsverdi to Dagens Næringsliv newspaper.
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According to the newspaper, the annual growth rate for housing in Oslo has fallen by 8.5% between January and May this year.
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‘The government took several measures to contribute to more sustainable development in the housing market, both on the supply side and on the loan side. After several years of strong price increases, developments in recent months may indicate a trend change in the housing market. It’s gratifying that the various measures we have implemented seem to have worked’, said Minister of Finance, Siv Jensen of Fremskrittspartiet (Frp).
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In Oslo, it’s required that you have 40% of the equity when you buy a second property. In the rest of the country, a 10% requirement has been maintained.
© NTB Scanpix / Norway Today
