Norway’s property bubble gathers strength through August
Norwegian residential property prices jumped 2.9% in August compared to prices in July, according to latest figures produced by consultant Pöyry.
The figures were produced on behalf of real estate agents and sector organsiations such as the Norwegian Association of Real Estate Agents (Norges Eiendomsmeglerforbund, NEF).
Seasonally adjusted prices advanced 0.7% over the month.
The summer holiday season in Norway typically ends by early August, and the month has seen an increase in both the number of properties for sale and interest from buyers.
Average prices have gained 8.1% over the previous 12 months, which has taken the price per square metre to NOK30,500 (€4,178) The average residential property – including both houses and flats – is now almost at NOK3m (€411,000). That compares against estimated GDP per capta of about NOK550,000, according to Statistics Norway figures.
“The un-naturally low interest rate in such an economic environment is like throwing fuel on a fire,” said property intermediary industry association Eiendomsmeglerforetakenes Forening (EFF)