The prices of apartments are rising far faster than prices of detached houses. The reason is larger demand.
According to Dagens Næringsliv housing prices increased in Oslo by 1.8 per cent in July this year. It is the highest July measure ever, shows house price statistics Property Norway put forward last week.
Apartments in Oslo has had a rise of 18.9 percent from March 2015 to July 2016. Compared to apartments, the growth of detached houses was only 8.5 percent. This represents a growth rate of apartment prices which is 123 percent higher than prices of detached houses.
CEO Christian Dreyer in Real Estate Norway believes the reason for this difference is large demand.
– This is where the immense pressure has been. People want to stay as close to the center as possible, he said. Dreyer believes that the effect of low mortgage interest rates that gradually beat into the housing market last year, could be an explanation for the break in price trends in apartments and villas.
– That a shift happened in March last year, is not something we particularly note in the market. But it was when we noticed that there were very many who wanted out of the rental market and into the owner market, and then it is apartments they are aiming towards, say the Real Estate Norway boss.
Source: NTB scanpix / Norway Today