Have we reached the turning point? (English)
June 22nd, 2009 Posted in tips
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What’s that I, are pricing rising for the first time since 2007? So I was checking out the prices that apartments in Copenhagen South (København S), where I live, was going for these days, and to my surprise the prices that apartments are offered at are rising!
Now, I’m not breaking out the champagne just yet, but it’s nice to see any change anyway. There are of course many explanations to the increase in prices that have nothing to do with this being a recession turning point. Some of the reasons I can think up just now would be…
- People who cannot sell their apartment after having lowered their asking price have decided not to sell and taken down their ad (given the amount of apartments offered in the second graph)
- The sellers that are left on the market are unrealistic
- More “project apartments” are being sold (as in luxury apartments near Islands Brygge & Ørestaden), not the American definition of “projects”
Still I’m hoping we’ve seen the end of prices falling, and news like this one (link is in Danish) gives me hope. I bought my apartment (with my girlfriend) back in October 2007 where the average square meter price asked for was 34.600 DKK, but luckily I only paid 26.800 per square meter, so we seem to still be in the green (though we do not live in the most expensive area of København S, so I’m probably all wrong, which makes the need for rising apartment prices even more relevant, so Julie and I actually have an option to move from here should we ever want to).
But the long of the short is…. I think now might prove a good time to buy an apartment!
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