Norwegian land triples in price over seven years
Prices of residential lots have tripled since 2005 in Norway’s capital Oslo, figures from Norwegian property broker Akershus Eiendom suggest.
The price has risen from NOK5,300 (€702) per square metre (sqm) to NOK16,600 (€2,200) over the period, as the country’s property price bubble shows no signs of deflating.
In one example last week, a property developer acquired land for NOK90m (€11.9m) which ten years ago sold for NOK32m (€4.2m), reports Dagens Næringsliv. That actually put the price at about NOK22,000 (€2,915) per sqm, the newspaper quoted developer Hans Andersen.
The project is expected to generate 4,300 sqm of property for sale when completed, likely to sell at NOK65,000 (8,616) €per sqm, generating a profit of about NOK10,000 (€1,325) per sqm, Andersen said.
In April this year, the head of OBOS, (Oslo Bolig- og Sparelag), the biggest property manager in the city, said that it was proving difficult if not impossible to construct new properties for less than NOK45,000 (€5,964) per sqm. The quoted purchase price for an apartment of 100 sqm from OBOS then was about NOK4.5m (€0.6m).