Market Report 2022

Colliers Market Report 2022

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Hotel Industrial/logistics Retail Residential Of f ice t og logostik Detail Bolig Kontor

Golden year for ownership housing Rallying prices are a rare phenomenon in the residen tial market in times of crisis, yet the markets for owner ship and rental housing alike have witnessed surging activ ity and demand over the past 12 months. As a result, the ownership housing market has been characterised by vir tually non-existent resale periods and unprecedented price hikes, while the rental market has seen all-time low vacancy rates, climbing rent levels and strong demand. Favourable financing terms and a sharper focus on sav ings and the home during the coronacrisis fuelled demand. In addition, the many hours workers spent at home dur ing lockdowns motivated a spree of home improvement schemes: More people wanted a home office and gener ally more space around them, which required more resi dential space. Higher residential area requirements and the

resulting increase mainly in ownership housing prices have prompted certain concerns: In autumn 2021, Danmarks Nationalbank along with the Danish Systemic Risk Council advised the Danish Government to limit the availability of interest-only mortgages for the most debt-ridden borrowers. So far, the Government has rejected the intervention, but should it be adopted at some point in future, it is bound to upset the pricing mechanism in the ownership housing mar ket, mainly in Copenhagen and Aarhus, where price hikes have been most pronounced and residential prices are the highest in the country. In late 2021, the ownership hous ing market slowed. However, all put together, the continued limited supply of dwellings for sale, shorter resale periods and modest rebates indicate sustained strong demand. It is therefore fair to expect continued price hikes in the next 12 months, although at a much slower rate than seen in 2021.

Owner-occupier flats see sustained uptrend in prices and ever-shorter resale periods

13 %

Laydays -30 %

-2 %

Realised sales prices

Units for sale

Sold

Note: Developments in 2020Q3-2021Q3, owner-occupier flats in Denmark. Source: Finans Danmark