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Denmark Faces ‘Out of Control’ Housing Market

A cyclist rides her bicycle past residential and commercial properties in the Christianshavn district of central Copenhagen.
Photographer: Freya Ingrid Morales/Bloomberg
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Denmark’s biggest mortgage bank is warning there’s a risk the housing market may get “out of control,” especially around cities, as long-term negative interest rates make borrowers complacent.

“To be concrete, there is a danger that Danes go blind to the risk of rates ever rising again,” Tore Stramer, chief analyst at Nykredit in Copenhagen, said in an e-mail. “That raises the risk of a major housing price decline, when rates at some point or other start to rise again.”