The latest set of Danish housing data don’t support estimates that the market is in a recovery phase, according to Danske Bank A/S, the country’s largest lender.
House prices declined 2.1 percent in December from a month earlier, Statistics Denmark said today. Apartment prices rose just 0.1 percent in the period, it said.
“In 2012, there was a lot of talk that the housing market had turned, but it’s a picture that’s hard to confirm, given the latest price developments,” Steen Bocian, head of economic research at Danske in Copenhagen, said in a note to clients.
Denmark has yet to recover from a housing crisis after its property bubble burst in 2008. The event triggered a spate of regional bank failures and sent the nation into a recession. Gross domestic product contracted 0.9 percent last quarter from the three months through September as consumers spent less and businesses stopped investing.
“The housing market has yet to turn, in aggregate terms,” Bocian said. “The market has improved in some regions for some forms of housing, but there’s no nationwide trend.”