* S/A adjusted prices up 0.9 pct in September, up 10 pct Y/Y
* Real estate brokers expect prices to rise further in Q4
* Big regional differences; Oslo region pulls ahead
* DNB Markets: Prices support unchanged interest rate in
(Adds quotes, reaction, background)
OSLO, Oct 5 Norwegian seasonally adjusted
housing prices rose by 0.9 percent in September compared to
August, a real estate industry association said on Wednesday.
On a year-on-year basis, prices rose by 10 percent in
September, Real Estate Norway said.
Unadjusted prices fell by 0.1 percent in September from
"This is the seventh consecutive month with a strong
seasonally adjusted rise in prices. It's obviously a strong
trend," Chief Executive Christian Dreyer of Real Estate Norway
told a news conference.
"We expect the 12-month growth to rise further in the fourth
quarter, driven by developments in Oslo and the surrounding
region," he added.
Fewer houses for sale and growth in the population combined
to drive up prices in Oslo by 18.5 percent year-on-year.
"There are 12 percent fewer houses for sale in September
compared with September last year," Dreyer said.
By contrast, prices were declining in the heavily
oil-dependent Stavanger region, after crude prices have dropped
from $114 per barrel in 2014 to the current $51.7.
In other parts of Norway, outside of Oslo and Stavanger,
price growth was moderate, Dreyer said, adding that a recent
proposal by the country's bank regulator to tighten capital
requirements was the wrong approach.
"There's no point in tightening credit practises, because
it's the supply side that's the problem," Dreyer said.
The central bank has also expressed concerns over the rapid
house price growth, and said this was among the reasons it kept
its key policy rate on hold in September, rather than cut as it
had previously said it would.
Brokerage DNB Markets said low interest rates had been among
the key drivers of the surge in housing prices.
"We expect the key policy rate to be kept unchanged in
December in line with further improvement in Norwegian key
figures. Today's house price figures support this expectation,"
DNB Markets said.
The Norwegian economy is still fragile however, so the
central bank won't hike rates any time soon, DNB Markets
The house prices were compiled by Real Estate Norway, FINN
(Reporting by Ole Petter Skonnord, editing by Terje Solsvik)