The current increase in house prices could at a first glance look like a repeat of such a situation. However, when taking into account developments in fundamental factors, i.e. mortgage rates, income, and the housing stock, there is no clear sign of an emerging speculative house-price bubble. Not even in Copenhagen.
Slide 27: Prices of Copenhagen apartments not out of line with other large cities This conclusion is corroborated by an international comparison. While house prices have indeed risen substantially in the Copenhagen area, their sustainability cannot be assessed by looking at growth rates alone. Also their level relative to income must be taken into account.