The housing sale in spring is a positive surprise and is back at the same level as before COVID-19 struck

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Springtime is the festive season when it comes to selling homes, but in the month of March, Denmark was hit by lockdown, and many predicted that the crisis would hit the housing market as hard as the financial crisis of 2007. New figures now show that the housing sales in spring 2020 defy the gloomy predictions and thus do much better than feared. This is in line with the development in the housing sale seen on Engholmene.

There is a great interest in showings, which appears from the number of closed deals. Says home Sydhavnen og Projektsalg v. Lone Bøegh Henriksen A/S and the property developing company NPV A/S.

Everything indicates that the month of May will close at the same level as January, which was really a splendid month. So there is a really good reason to be optimistic on behalf of the housing market because it shows that it is far stronger than many had prophesied. After a couple of weeks in March with a decrease in demand, the estate agents got busy again.

”We have been really busy over the last few months,” relates Nikolaj Møller Andersen, project manager and estate agent for home Sydhavnen & Projektsalg.” Despite the COVID-19 situation there have still been many interested buyers. We have not been able to have the usual open house events. On the other hand, we have seen a huge interest in the individual showings, and a great number of these have led to a deal.”

This fits the pattern that can be read from the sales figures from Boligsiden and Realkredit Danmark. After a tremendous and very sudden plunge in week 16, where the trade activity was almost 25% lower than during the same period in 2019, the number of weekly deals is now at 10% above. So far, the housing market thus looks as if it will manage far better than feared. It shows that the crisis has not killed people’s housing dreams, but that, on the contrary, they choose to strike when the right home comes up. Also at the property development company NPV A/S that develops buildings for both residences, business and parts of towns do they experience a sound market, which is stable after the corona crisis.
“Obviously, during the period when everything was closed down, we could not have open house events. But we are seeing no signs of the crisis atmosphere that has been spoken about a lot, in our figures,” says Jens Schaumann, CEO of NPV A/S, which is behind the development of Engholmene in Copenhagen and Gammelhavn in Vejle, among others.
The prices of project sales ar stable. If as a buyer you are waiting for the prices to drop, you will probably have to wait for a long time. At the moment there is nothing to indicate that the housing market is particulary affected by COVID-19. The supply of project sales is limited at the moment and there will not be much news for a while. The buyers are there, and they are willing to jump fast. Therefore, these days there are no reductions in price, which many have prophesied there would be, as a direct consequence of the lockdown.
“The prices of the flats at Engholmene were fixed a year ago. In the meantime, the market in Copenhagen has develop positively, so even if no reductions are given, there is still a possibility of doing a good deal if you compare with the prices of the new projects offered a short while ago and which will be offered,” says Nikolaj Møller Andersen from home Sydhavnen & Projektsalg.