Prices for apartments in Denmark are growing so fast that it could lead to instability of the market, say the representatives of Danske Bank, a leading bank in Denmark. Prices of apartments rose by 2.5% in May 2013 in a monthly basis and by 12.4% compared to the same period last year, reports ee24.com with reference to Statistics Denmark. As for the houses, the prices of private homes rose 0.5% in May compared to the previous month and by 3.9% compared to the same period last year.
This sudden jump in prices for apartments in Denmark can not be called by a planned economic development, says Steen Bocian, CEO of Danske Bank. He also noted that at the moment there is no danger of a bubble, but if the price increase continues at the same level, the risk will increase.
The Danish economy has still not fully recovered from the effects of the explosion of the housing bubble in 2008. Then it has brought down prices by about 20%. One or two years ago, consumers were afraid of further price declines, so did not hurry to make purchases. Now the situation has changed completely, affecting the behavior of investors.