Copenhagen: Every Hour the Apartments lose $20 in Value

30 de abril de 2007

<body><div id="article"><tr><td height="28" valign="middle" width="184"></td><td valign="middle" width="185"></td></tr><h1>Copenhagen: Every Hour the Apartments lose $20 in Value</h1><p>April 30 (EIRNS)-The Danish housing bubble is beginning to seriously deflate. Danish home owners, who have seen continuously rising prices in real estate over the last years are now seeing the opposite: Housing prices are falling by the hour.</p><p>The big Copenhagen daily <em>Berlingske Tidende</em> reported on April 28, that the recently released figures for real estate sales for the first quarter of 2007, compared with the prices of just three months earlier, show a fall in the prices of apartments in the Danish capital of between 4.4 and 12.1 percent. Worst hit are new apartments being built in the South East of Copenhagen, which in three months have seen falling prices of 12.1 percent (equivalent to a yearly fall of 40 percent). In the bigger area of <em>Noerrebro</em> , prices have fallen 10.3 percent (equivalent to a yearly fall of 35 percent). A 75 square meter apartment, which 3 months ago cost 2.5 million Danish crowns, can now be had for 2.1 million crowns. The paper notes in its headline, that that means a fall of 112 Danish crowns ($20) an hour.</p><p> <em>Berlingske Tidende</em> reports that smaller apartments are falling fastest in price, since the pattern of parents buying apartments in order to rent them out to their kids while they study (the students' only chance of having an apartment they can afford) has stopped. At the same time as the real estate prices are beginning to drop there are several other ominous signs for those planning to leave the bubble and sell real estate in Copenhagen and other parts of Denmark. The amount of housing for sale has more than doubled compared to a year ago, and stands at 60,000. At the same time new apartment are being added to the market, as apartment projects in the Copenhagen area are being finished, which were started in the last couple of years with a steaming hot real estate market.</p></div></body>