The latest housing market data for the first quarter of 2023 in Denmark shows a notable change in property prices. While the prices of single-family houses experienced a marginal increase of 0.1 percent on a nationwide average from the fourth quarter of 2022 to the first quarter of 2023, the prices of owner-occupied apartments saw a decline of 1.1 percent during the same period when measured in seasonally adjusted terms. This marks the third consecutive quarter of price decreases for apartments, a trend not seen since the financial crisis, where apartment prices fell for ten consecutive quarters.
The Statistics Denmark report, sourced from www.statistikbanken.dk/ej12, reveals that single-family house prices declined the most in the eastern part of the country. All five regions in Denmark experienced a drop in single-family house prices from the first quarter of 2022 to the first quarter of 2023, with the largest annual decrease observed in Region Sjælland at 8.4 percent, followed by Region Hovedstaden at 8.2 percent. The lowest decline was recorded in Region Midtjylland with a 3 percent drop. On a national level, single-family house prices fell by 5.8 percent during the same period.
Similarly, the prices of owner-occupied apartments witnessed the most significant annual decrease in the eastern regions of Denmark. All five regions experienced a decline in apartment prices from the first quarter of 2022 to the first quarter of 2023. Region Sjælland and Region Hovedstaden saw the most substantial price drops at 9.0 percent and 7.5 percent, respectively, while Region Nordjylland recorded the lowest decrease of 4.5 percent. Overall, the prices of owner-occupied apartments fell by 6.1 percent across the country during this period.
The real estate sales statistics indicate an increase in property transactions during the first quarter of 2023 compared to the previous quarter. The data, retrieved from www.statistikbanken.dk/ej12 and ejen77, show that 10,318 single-family houses were sold on a seasonally adjusted basis in the first quarter of 2023, representing a growth of 16.6 percent from the fourth quarter of 2022. However, when comparing this data to the same period before COVID-19 (first quarter of 2019), single-family house transactions have fallen by 16.6 percent.
Additionally, 3,054 owner-occupied apartments were sold in the first quarter of 2023 on a seasonally adjusted basis, showing a 5.9 percent increase compared to the fourth quarter of 2022. Nonetheless, when compared to the corresponding pre-COVID-19 quarter (first quarter of 2019), the sales of owner-occupied apartments have decreased by 30.7 percent.
It is essential to note that the property sales statistics now source their primary data from Datafordeleren, a public data exhibition platform, which marks a transition from the previous arrangement with SKAT. While this change will not significantly impact the reported figures for most property sales, it may result in fewer registered sales of agricultural properties due to the omission of area transfers in Datafordeleren.
These trends in Denmark’s housing market are closely monitored by economists and policymakers as they provide critical insights into the nation’s economic health and can influence potential homebuyers and sellers in the country. Further developments in the housing market will be closely observed by industry experts in the coming quarters.
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