Housing construction in Norway almost halved this year
So far this year, construction of 5,795 homes has started in Norway, 42 % fewer than at the same time last year. In Eastern Norway, the decline is 46 %.
After weak new home sales in 2017 and 2018, the trend in Norway is a major decline in new housing construction, says the report Econ Nye Boliger from Samfunnsøkonomisk analyse (Socio-economic analysis).
Weak sales over a longer period may explain the low start-up we have seen this year, says chief economist Andreas Benedictow in Samfunnsøkonomisk analyse to Finansavisen.
There have also been poor sales of new homes this summer, with the weakest summer sales in July and August since 2014, according to the report.
For the country in general, the decline in new home sales since mid-June has been 13 %, while the decline is 19 % for Eastern Norway. Benedictow cites several factors that help to curb demand, such as the mortgage loan regulations, the introduction of the debt register and somewhat higher interest rates.
Now we have had a period when used home prices fell a lot in 2017, and then it became less favourable to buy new housing, says Benedictow.
Norwegian homes now cost an average of NOK 56,500 per square metre, up 6 % from last year. The most expensive is in Oslo with NOK 85,900 per square metre. The price per square meter in Southern Norway is the lowest, with NOK 44,100.
© NTB Scanpix / #Norway Today
