Oslo housing prices soar 24% amid 'social engineering' debate

Oslo

NORWAY'S government may end up regretting its move to target Oslo in an effort to cool a runaway housing market, according to a leading real-estate economist. "I don't think it's a good idea generically to social engineer where people live," Albert Saiz, professor at Massachusetts Institute of Technology, said on Thursday.

Fuelled by record low rates, house prices in western Europe's biggest oil producer have surged by double digits in the past year, and by more than 24 per cent in the capital Oslo over the same period. In December, the government tightened mortgage lending standards nationwide, but added additional restrictions on buyers in the Oslo region.