Norway’s housing market to cool off in 2017
Norway‘s housing market should be expected to cool down this year and next as tighter mortgage regulations, more construction and a surge in prices combine to dampen demand, builder Veidekke said.
While the year-on-year growth in housing prices hit a 10-year high of 13 percent in February, Veidekke said it expects prices will grow by a much more moderate 2-3 % in 2018.
The Scandinavian building and construction market will probably grow by 6.2 percent in 2017 before easing to 4.4 percent next year, the company added.
Veidekke’s numbers are measured in nominal prices and so do not show the change in construction volume, which is expected to be 1-3 percentage points lower than the nominal growth, it said.
In Norway, the company’s home market, nominal building and construction was seen growing by 6 percent in 2017 and 4 percent in 2018.
Neighbouring Sweden will probably see a nominal expansion of 7 percent in 2017 and 3 percent next year, while Denmark was expected to grow by 6 percent this year and 9 percent in 2018.