Residential property prices making negative return in Sweden
Residential property prices rose over the past month in Sweden, but remain on a negative trend on an annualised basis, according to latest figures from Svensk Mäklarstatistik, the body that collects property data from brokers across the country.
As indicated in the table below, property prices gained across all key urban areas with the exception of Gothenburg, where they remained unchanged. The latest three-month figures, comparing the second and third quarters of 2018 also indicate ongoing price appreciation.
However, the annualised figures continue to show price falls across all areas accounted for. And compared to last year’s volumes, defined as the number of sold freehold units, the market is down 6% this year so far.
Prices for houses fell by 1% across all areas in September, although the number of sales of houses has risen slightly this year.
Prices will continue to remain moderated by the fact that there are currently more properties to choose from in the market, and buyers are taking longer to complete the sales process, Svensk Mäklarstatistik noted.
|Freeholds||1mth||3mth||12mth||Average price (SEK/M2)|
|Nationally||+ 2%||+ 3%||– 5%||37,552|
|Central Stockholm||+ 1%||+ 3%||– 6%||88,130|
|Greater-Stockholm||+ 2%||+ 2%||– 6%||55,877|
|Central Gothenburg||± 0%||+ 2%||– 4%||59,497|
|Greater-Gothenburg||+ 1%||+ 3%||– 4%||44,045|
|Central Malmo||+ 2%||+ 4%||– 3%||31,385|
|Greater-Malmo||+ 1%||+ 6%||– 2%||28,310|
The figures are based on sales of 23,816 freeholds in July-September 2018. The three month figures compare against April-June, while the 12 month figure compares July-September 2017 with the corresponding period in 2018.
Recent research by the Swedish Investment Fund Industry has looked at the propensity to save to buy a first property, with an eye to the Norwegian regime that encourages younger people to do this.