“Demolition object” of 34 square meters went 700,000 above the price estimate – E24

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The apartment at Grorud was sold on Friday for NOK 2.4 million. Over 100 were on display, according to the real estate agent.

The 34-square-meter home on Grorud was built in 1963. Several parts of it have remained unchanged since the year of construction.

Real Estate Agent 1

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The home right by Grorud center was built in 1963, and several parts of the apartment have remained unchanged since the year of construction.

– The interest in the home was above all expectations, says Mohsin Ali, department manager and real estate agent at Eiendomsmegler 1 Stovner.

A total of 138 showed their interest in the home and over 100 people are said to have stopped by for a viewing.

The kitchen furnishings are from 1963 and several fronts are missing.

Real Estate Agent 1

The last time the home was sold was in 1992, then for 275,000 kroner. This time, the home was suggested to be just under NOK 1.7 million.

– The home was eventually sold for 2,400,000 kroner after a bidding round with 13 different bidders, says Ali. That is 700,000 kroner above the suggested price.

«Demolition object»

The apartment has an area of ​​34 square meters and is located on the fourth floor. This gives a price of NOK 70,000 per square meter, well above the national average and just slightly below the average for Oslo.

The housing advertisement does not hide the fact that the apartment is not in tip top condition. Ali is aware that it is a renovation object, and several parts of the home, such as the bathroom, need a complete renovation.

– The seller is naturally very happy with the result. There is often uncertainty about how the market responds to homes that appear as “demolition objects”, says Ali.

The bathroom is from 1963, and according to the housing ad needs a complete renovation.

Real Estate Agent 1

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– A good market

In the same street is another apartment of 34 square meters for sale. This is not marketed as a refurbishment object, and has a total price of just over NOK 2.2 million.

– It has been out for a couple of days only. There is good interest in the home so far. But there are not a hundred pieces registered, says broker at DNB Eiendom, Lise Egge.

– These are popular apartments. It is right by Grorud center, and at a public transport hub for travel in and out of Oslo.

She says that sales are expected to go well here as well.

– The seller is realistic and satisfied with the price quote.

– Do you have any thoughts about house prices and the market in the area?

– It is a good market. There has been a rising market here in the area for many years, with a few buzz here and there. This is an area where many people buy their first home.

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Strongest growth in Oslo

In Oslo and in the rest of the country, there has been a burning development in the housing market recently.

And the growth has continued throughout the autumn. In September, which is normally a month of falling prices, Norwegian house prices surprised with a jump of 0.4 per cent.

The upturn was strongest in Oslo, with a twelve-month growth of 7.7 per cent.

– We are in a situation now where it can be difficult for many to enter the housing market in the future, said Eiendom Norge manager Henning Lauridsen when he presented the September figures earlier this month.

The strong development in the housing market comes at a time with a record low key interest rate of zero, which the brokerage industry has pointed out as an important price driver.

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Carl Geving, director of the Norwegian Real Estate Association (NEF), has previously warned of a “strong cocktail” for Oslo’s housing market, where the zero interest rate is combined with a housing shortage.

When E24 spoke to the top broker in early October, he thought that inflation in the capital would only get steeper.

– There is every reason to fear abnormally strong price developments in Oslo in the future. September is usually a weak month, but was the opposite. I also think October will be unusually strong, said Geving.

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