Denmark to lower property valuations for 30,000 apartments

The Danish government plans to lower property valuations for about 30,100 owner-occupied apartments.

This change will apply across 31 municipalities.

It aims to protect homeowners from unfairly high property taxes.

Minister for Taxation and Growth Jakob Engel-Schmidt presented the proposal.

He said valuations should reflect local housing market conditions.

Valuations should not depend on price hikes in larger cities.

Currently, 82 out of 98 Danish municipalities lack enough apartment sales data.

Statistics Denmark cannot create reliable local price indexes for these areas.

For instance, Bornholm apartment values were influenced by rising prices in Copenhagen.

Under the new plan, the Danish Assessment Agency will use local house prices instead.

They will use single-family house data when it produces lower valuations.

If local data is missing, they will apply the lowest regional index.

Apartment owners on Samsø, Fanø, Læsø, and Ærø get extra relief.

They are generally exempt from assessment price increases this year.

The new rules will apply through 2027.

The government may extend them if no better system is developed.

This report was published by CPH Post.