This makes the Copenhagen housing market vulnerable to interest-rate hikes. Thus, there is a considerable risk that if the real price increases seen in recent years continue, they will be followed by corresponding falls. Page 3 of 8  Let me underline, we are not yet in a housing bubble, but the situation warrants attention.
Part of the problem is that the present regime of housing taxation is destabilising. To counter this, a number of macro-prudential measures have been taken.