Housing market reaches boiling point
Residential house prices continue to rise due to high demand, limited supply and low interest rates.
Last year saw 376 residential homes sold in the open market. The only year with a higher number of house sales was 2015.
The biggest increase was in the smaller villages, accounting for 146 of the 376 total. However, there is a general increase across the country.
Tórshavn has the highest prices, with an average sale price of DKK 3.3 million last year, compared to DKK 2.5 million in 2016.
>> SEE ALSO Average house price rose by DKK 90,000 in 2020
Last year’s average sale price in small villages was DKK 1.3 million and DKK 1.6 in towns. These prices are also significantly higher than in 2016, and figures for the first quarter of this year show that this upward trend is continuing.
Sandoy is one of the regions experiencing booming house prices, with many homes being sold at three times the price of ten years ago.
This price hike is a cause for concern, warns the National Bank, as house prices increased more than the average income last year.
Read the Faroese version of this article here.
Translated by prosa.fo