Housing market dangers are “especially acute” in Australia, Hong Kong, Canada and Sweden, Oxford Economics said, noting this has historically posed a threat to economic activity.
The Copenhagen real estate market is hot these days, with home sales up 9 percent in September, compared to a year earlier, said Thomas Hovgaard, the press officer for Nybolig, a real estate agency.
Demand is particularly high for small apartments, Mr. Hovgaard said. In recent years, the local government has prioritized building larger apartments to attract families, he said, but “Copenhagen has too many students and far too few apartments.” Prices for apartments in the city, he said, have increased 11 percent in the last year, from 35,000 to 39,000 krone a square meter (or about $511 to $566 a square foot).
While Danes are currently allowed to borrow up to 95 % of the cost of buying a home, this loan-to-value ratio should be lowered to 90 % or less
A total of €64.5 billion was invested in European commercial property in the final quarter of 2015, which took volumes for the full year to €238.5 billion, a 25% increase on 2014.
However, the fourth quarter total was only slightly up, by 0.5%, on the same quarter of 2014, indicating that investment growth lost a little momentum towards the end of the year, according to the latest European quarterly commercial property outlook report from Knight Frank.
However, it shows that increases in investment activity were widespread in 2015, with the core markets of the UK, Germany and France all seeing transactions rise by more than 20%.
The level of investment into European commercial real estate continues to grow with €62 billion invested in the third quarter of 2015, up 18% on the same period in 2014.
France experienced the most noteworthy increase with investment activity of over €7 billion, almost double that of the same quarter in 2014, according to figures from CBRE.
Opt in here