Monday , June 14 2021

Former Housing Director again believes in bid price in 2020

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According to Baard Schumann, two factors will lead to a new housing stock price in 2020.

"I think we will get an eight percent rise in apartment prices in Oslo in 2020. Maybe even more," says director of the Selvaag Baard Schumann Housing Fund, Friday's edition of Dagens Næringsliv (DN).

So it is far easier than the forecasts proposed on Tuesday, where socio-economic analysis expects housing prices to rise by only 5.5 percent in Oslo over the next three years.

– Dramatically smaller homes

Even Schumann points to several factors that price could make trouble in the capital.

– The interest rate on Norges bank is too aggressive. Yes, interest rates will rise, but wage growth will outstrip growth rates. That, combined with low completion, will raise prices, he says.

Schumann estimates that the number of homes completed in 2020 will be too low to meet the high demand.

DN tells us how we get "dramatically fewer homes" completed in 2020. Despite the fact that Oslo has a large number of regulated homes, only seven to nine thousand homes can be built in the next few years, Schumann believes.

Read also: Apartment prices in November fell by 0.6 percent

– The most dangerous thing I've seen

Even more different views are chief economist Jan Ludvig Andreassen. He goes against the rest of the analysts predicting a sharp decline in house prices over the next few years.

At a conference of the Norwegian property association, he differed with his own special title.

"Today's housing market is the most dangerous thing I've ever seen in life," said Eike's chief economist from the stage, according to DN.

Not only does he believe that interest rates will not increase, unlike Norges Bank, but Andreassen also points to the population.

RAKE MOTION: Chief Economist Jan Ludvig Andreassen points out his forecast for the housing market.

Terje Pedersen
NTB scanpix

The chief economist points out that birth rates in Norway, together with the rest of Europe, have fallen.

Another thing he did was that without immigration, Norway "stopped Norway".

Andreassen, however, does not have a clear answer to the question of when housing prices will fall, he is rather worried about how the longline stretches.

Read also: Real Estate Norway: Housing prices rose 0.1 percent in September 2018

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