Danish central bank warns of rising speculation in housing

Copenhagen

DENMARK'S central bank said a sudden surge in house prices, especially in the capital Copenhagen, suggests buyers are becoming more speculative.

"Over the last year, house prices have soared," the bank said in its quarterly review, published on Wednesday.

On average, the price of single family houses has risen by 6 per cent, while owner-occupied apartments are up 10 per cent over the period, it said. It urged lenders to require borrowers to make down payments bigger than the…