The change of mood seems to have been most pronounced in the Greater Copenhagen area, and it is also in Copenhagen that house prices have recently fallen, especially for owner-occupied flats. This reflects that prices per square metre have reached a very high level, and that the supply of newly-built homes has augmented.
Construction always reacts to rising house prices with a certain time lag. Economic growth in Greater Copenhagen is still strong, however, and prices will be underpinned by the influx of new residents from the rest of the country. Three quarters of Denmark's owner-occupied homes are located outside Greater Copenhagen. In most areas, prices have risen more slowly, and price falls are less likely.