Norway new home construction slows to lowest second-quarter level
In the April-to-June quarter, construction started on 2,994 new homes, 14 per cent fewer than in the year-earlier period, according to data released by the association of Norwegian homebuilders on Tuesday (Aug 12). It's the lowest level for a second quarter on records dating back to 1999, managing director Lars Jacob Hiim said in a statement.
While Norges Bank delivered its first post-pandemic interest-rate cut just before the end of the period, the data still paints a less bright picture of housing investment than that needed for a clearer rebound of mainland economic growth. The Labor government, leading in polls ahead of the Sept 8 parliamentary election, has pledged measures to boost home supply which the lobby says is clearly below the expected housing need.
'The interest rate cut in June was positive, but we have not yet seen the effect in the new housing market,' Hiim said. 'Construction costs are too high and the planning and construction process takes too long, is too complicated, detailed and unpredictable.'
Norges Bank said in June it expects housing investment to 'pick up markedly' as home price gains increase profitability of such investment. Even so, the level at the end of 2028 is still projected to be 'clearly lower than in the pre-pandemic period.' BLOOMBERG
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