Experts predicted a decline in the housing market due to COVID-19, but nothing seems further away from the truth – the housing market is exploding.
Time for intervention according to Per Callesen, head of Danmarks Nationalbank, and Allan Polack, a top manager at Denmark’s largest pension company PFA.
New figures from Boligsiden reveal that the average price per square meter for houses in Denmark since March 2020 has increased by 14 percent.
During the same period, apartment prices have grown by 15.5 per cent and holiday homes have become 24 per cent more expensive.
“The housing market is not a good place at the moment. It is unhealthy and the situation is worrying. ” Per Callesen told Finans.dk.
Big brains think alike
Therefore, Callesen and Polack are both interested in curbing sky-high prices through political action.
Polack points to taxation of profits from home sales as the most obvious model to stop this trend in an interview with Berlingske.
“In a country where we tax all capital gains, it is strange that this does not exist at all,” he said.
Callesen specifically wants to look at the possibility of reducing interest rate loans, as well as removing the interest deduction on home loans.
No intervention plans
But the government will not intervene, stressed the Minister of Trade and Industry Simon Kollerup.
“The government is following the development, but it has no plans to intervene in the housing market,” Kollerup told TV2 News.
The country’s three largest financial groups – Nykredit, Danske Bank and Nordea – are also opposed to political interference.
They believe that this could potentially happen and exacerbate the problems associated with the housing market.
Source: The Nordic Page