Homebuilders: Only new construction will curb prices in Oslo

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The only way to deal with the housing prices in Oslo is to build more, says the Director of the Homebuilders Association.

Per Jæger believes that stricter mortgage requirements will have little effect on housing prices in the capital city, writes Dagens Næringsliv.

– In order for inflation to level off, we need to build more, says Jæger. While other participants say the recent tightening of requirements have begun to have an effect with fewer viewings and bidding rounds, but Jaeger doesn’t say anything about this.

– We have not noticed that there are fewer buyers. Sales continue at a high level.

Recent figures from the Homebuilders Association where he is Managing Director, show that new housing sales so far this year are in line with last year.

The strong growth in price in Oslo according to Jæger is due to the greater demand for two-room apartments.

– It’s where people can afford to buy. With an average income, this is what you can afford to buy. People can’t afford to buy the large apartments, he says and believes politicians must facilitate a comprehensive development of small apartments in the city.

– 2,000-3,000 extra small apartments available in the market over the next three to five years, would significantly reduce the effect on inflation, says Jæger.

This year, the Prognosis center estimates that there will be built around 6,000 homes in Oslo. In the coming years, the center predicts that each year there will be built 2,000 fewer homes than needed.


Source: NTB scanpix / Norway Today