Decreased prices of new multi-dwelling houses
After a strong growth in the prices of new multi-dwelling houses during the last years, the prices decreased with 3.5 per cent from the second half of 2007 compared to the first half this year. Compared to the first half last year the prices however are 5.2 per cent higher.
Statistics Norway has decided to stop the publication of the Price index for new multi-dwelling houses as from the second half of 2008. This is due to changes in the data basis, which is based on information from loan applications received by The Norwegian State Housing Bank. Last year, the number of loan applications has decreased considerably. A limited data basis leads to more uncertain price calculations.
From the first half of 2000 to the first half of 2008, prices of new multi-dwelling houses have increased by 83.4 per cent on average. In comparison, prices of row houses and second-hand flats rose by 82.9 and 77.6 per cent in this period according to the house price index from Statistics Norway. The construction cost index for dwellings have increased by 40.1 per cent in the same period.
From the second half of 2007, Statistics Norway only publishes the total index for new multi-dwelling houses. This means that we no longer distinguish between small houses and blocks of flats. This is a result of few observations in the data material.
The Norwegian State Housing Bank provides the data used in this index. The data are based on information from loan applications received by the bank. The index only includes projects for which loans have been granted. A distinction is made between two building categories:
Small houses comprise row houses, linked houses, atrium houses, terraced houses, houses with two, three or four dwellings and other multi-dwelling houses with less than three storeys.
Blocks of flats comprise multi-dwelling houses with three or more storeys
The prices used in the index refer to the price paid by the final owner, excluding the cost of land. They are based on loan applications and are estimates of the final cost, not the actual final cost. Comparisons between the estimated costs and actual costs show that there are insignificant differences between the two.
Time of measurement
The index is comprised of multi-dwelling housing projects for which the Norwegian State Housing Bank has granted loans during the six-month reference period. Loans are normally granted before or at the same time as the building starts.