Selvaag believes that the house splicing team between Oslo and the competitor makes competition completely impossible – E24

– I think it is very strange that the municipality enters and cooperates with an actor in this way, says Molvik.

– I think Selvaag should focus on developing something that is good, rather than criticizing others for trying to solve the city’s housing challenges, acknowledges Obos CEO Daniel Kjørberg Siraj.

There are steep fronts between two of the largest home builders in the country, after Obos contacted the municipality of Oslo with his idea:

A new housing company where public and private capital merge and finance the purchase of new houses, which are then sold to the inhabitants of Oslo on more favorable terms than those offered by the market.

Both the Oslo City Council and Obos confirmed to E24 that they are in ongoing talks to establish the new company, which was first mentioned by Dagsavisen this week.

Housing prices in the capital are at a historically high level and the goal is to help more people enter the market.

– Makes competition completely impossible

But the Selvaag boss is very critical. Molvik says he fears that the municipality of Oslo will end up giving Obos a financial advantage that can be used to sweep competitors off the field.

– It is already difficult to compete with Obos, which operates with completely different return requirements than a public company like us. If they are also going to receive capital from the municipality, the situation will be completely impossible, says Molvik.

Give an imaginary example:

– Land is sold for 80 million crowns. While we and other housing players must regain profitability and avoid excessive prices, Obos will be able to easily bid, for example, 100 million, where the municipality finances half, says Molvik.

– With such a financial advantage, they can always outperform the rest of us and still make the calculation go up. I don’t think that is correct. We should compete on a level playing field, says Molvik.

The municipality covers half

– You must think exactly what you want. But you should wait to talk until you know what you’re talking about, the Obos boss replies.

He says they recorded their proposal to the Oslo municipality some time ago.

– We have told the municipality from day one that this should not be an exclusive scheme for us. They can invite other home builders, also to Selvaag, says Siraj.

The simple idea, he says, is for them to buy new homes together with the municipality, and then offer favorable purchasing conditions for their buyers.

– Our proposal allows the partial rent, the rent in property or the start of the house, where you can buy apartments in the city of several players.

– Did you spit on something and the municipality pays the rest?

– We have said that we can cover half of the company’s capital stock.

Responsible City Council: must not accommodate an actor

Siraj rejects the Selvaag boss’s scenario in which the new company will cut plots from competitors by beating the offer.

– We have not registered with the municipality that we will not buy lots or build houses together.

– Is it relevant?

– Now the dialogue is ongoing and it is impossible to say how it unfolds. But a possible purchase of land from the municipality must in that case be made at market price, and the intention is for the company to go commercially so that it generates a profit to finance alternative long-term home purchase models.

Victoria Marie Evensen (Labor Party), Oslo Councilor for Business and Property, responds as follows to criticism from the Selvaag boss:

– This work is in its infancy and we will have to go back to the details on this, but as a municipality, of course, we are concerned about finding a solution that does not satisfy some actors, he writes in an email.

– For the red-green city council, it is an objective that we achieve housing in the third housing sector and facilitate the passage to the housing market for people with regular wages. Such collaboration can be one of several responses to that.