Small apartment ban raises prices



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It is currently not allowed to build apartments of less than 35 square meters in the central districts of Oslo. Raise prices, the industry believes.

– The only solution will be to increase construction, says CEO Henning Lauridsen at Eiendom Norge.

Mini house sold for a huge sum: – There was a huge interest

– Then it is important to dissolve in the apartment standard, not only the prohibition to build less than 35 square meters, but also the fact that 40 percent of the apartments must be more than 80 square meters and often they are too much expensive.

– Pushes young people

Now the Conservatives want to dissolve the ban on new small apartments.

– It should be possible to build more small apartments precisely because there are many first-time buyers who must take the first step in the housing market, says Øystein Sundelin, leader of the Conservative Party group at Oslo City Hall.

– Now the demand for the smallest apartments is so much greater than the supply that prices rise disproportionately and we end up pulling the youngest out of the Oslo real estate market. They may have to get out of town or find worse alternatives in town, Sundelin says.

Small and expensive apartments

– If the apartment rule is relaxed, we will build more small central apartments, because in one building there will be room for more apartments, for example two 40 square meters instead of one 80 square meters, says CEO Rolf Thorsen in Selvaag Bolig, which he also believes will lead to lower prices.

– The fact that the supply is less than the demand causes the prices of the smaller apartments to go up a lot in an unnatural way, so if there is a greater supply, the price will drop relative to other larger apartments.

– It becomes a worse city

However, the red-green city hall of Oslo will maintain the rule of the apartments, to avoid what they call the hybridization of the city.

– I understand that the developers would like to build a lot of small houses that they can sell at a high price in the center of Oslo, but it is not the case that people move to the central districts, and then they will live there for a couple of years , then move on. Then we get a hybridization that makes the city worse to live in, says Arild Hermstad at MDG, who is councilor for urban development in Oslo.

– We have a challenge when it comes to getting first-time founders into the real estate market. Today, 40 percent of tiny houses are owned by someone who does not live or intends to live there, so we need to do something about the tax system and get better initial loans and better social housing, Hermstad says.

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