• Sweden's news in English
 

Stockholm house prices place 12th in global study

Published: 20 Dec 2010 08:42 GMT+01:00

The study by the Global Property Guide shows that 17 of the 34 countries surveyed returned positive gains on house prices during the first nine months of the year, reported the Dagens industri daily.

Monaco is the most expensive city in the world in which to buy property, with an average square metre price of 407,000 kronor ($60,000).

London comes in second place on around 120,000 and Russia's capital Moscow comes in third alongside other high cost cities such as Paris, Singapore and Hong Kong with average prices in excess of 100,000 kronor.

Stockholm comes in 12th in a comparison of average 120 square metre-sized apartments across the cities, with current prices averaging 60,000 per square metres in central areas, according to Statistics Sweden (SCB).

According to the guide Latvia (Riga) was the faster climber among the countries considered in the third quarter, with year-on-year gains of 25 percent after a couple of tough years.

While prices have climbed the most in growth markets such as Singapore and Hong Kong, with double digit booms in Israel and Australia among others, the Nordic countries all showed stability returning small gains.

The Local reported last week that prices for apartments in Sweden had reached record highs in the last quarter.

Fuelled by housing shortages in the attractive areas of Sweden's major cities, prices have resumed their climb and estate agency Fastighetsbyrån dismissed talk of a housing bubble, with CEO Lars-Erik Nykvist arguing instead that as few bought homes for speculative purposes, the market is in balance.

According to Statistics Sweden, houses in Sweden have climbed in price by an average of 5 percent over the past 12 months, according to recently released figures.

TT/The Local/pvs (news@thelocal.se)

Your comments about this article

09:40 December 20, 2010 by Acero
Sorry to rain on the parade but this IS actually a housing bubble!! Why would they discount it when its helping to aid the economy and in turn helping the growth figures.

Exceptionally low Interest rates + High tax credits + the fact that people are effectively only renting from the bank because very few own their own house when its all come to an end.

One thing I do believe is that this system keeps prices high in an area that doesnt have a flood of foreign investment (i.e. its not paris, sydney or london at the end of the day) so the swedes have managed to maintain high prices and keeping it affordable (giving long lerm terms and good credits and interest rates)
11:26 December 20, 2010 by Rishonim
The housing market in Sweden is an illusionary one. For starters one can buy a home for 1M€ Euros in Sweden with zero down and simple pay the interest for the rest of your life while this is not the same in the rest of the world. In France you buy a home for 1M€ and you have in most cases come up with 10-20% and then pay the loan, preminum +interest.
11:52 December 20, 2010 by ontheball
This property inflation has to play out some time. Same with household debt. The economic measures put in place combined with an already artificially distorted housing market are only delaying the inevitable correction in overpriced property.
13:22 December 20, 2010 by saar
@Rishonim, where did you get the idea about zero down payment? Could you please show me? I'm curious. Do you own any property in Sweden?
14:36 December 20, 2010 by bjorkon
- Wealth tax got abolished -> wealth gets repatriated -> house prices go up

- Interest Rates Down -> loans get a whole lot cheaper -> house prices go up

- Interest only mortgages become the norm -> servicing a loan gets cheaper -> house prices go up (did the previous generation not bother to pay off their loans? .. thought not)

- Why pay tax when you can offset it against your mortgage -> house prices go up!

- Capital gains tax payable on your residential home when you sell? -> makes you reluctant to sell? -> house prices go up!

- CGT is useful source of income for government -> why cool the market? -> prices should really only go in one direction - up!

- Restrict housing market through limiting who can buy a flat/condo? -> why would that encourage supply of new accommodation? ->house prices go up!

.. is there a picture starting to emerge here? Acero and others here are right.
14:59 December 20, 2010 by Nemesis
@ Rishonim.

WRONG.
17:00 December 20, 2010 by Rishonim
@saar&Nemesis,

I own two properties in Sweden and I never had to put a penny down. The only thing I pay is the interest on the loans and never the premium..
18:17 December 20, 2010 by 123abcd1983
@Rishonim

when did you buy your apartments? A few years ago?

The bank policy is very strict now.

I have just bought my apartment in May, and the bank want me to pay at least 10% for the downpayment. And then I still have 10% for the top loan that with highere interest rate, and i have to pay the morgagate for the 10% top loan.

So in the end of the day I have to pay 20% at least in total for the cost of the apartment

I have discussed the interest rate with handelsbanken, Swedbank, SBAB, and SEB bank. And the deal I got is the best deal I could get.

The 0% interest rate is no longer there, but maybe a few years back.
18:22 December 20, 2010 by Nemesis
This definately is turning into a housing bubble. I have seen this before in London and Dublin.

@ Rishonim,

According to your statement you have not bought a property in Sweden in at least five years. New rules mean a person has to put up a deposit.

However I also never had to put a penny down or pay any interest. I bought mine cash.

My friends however all have to put down about 10% to 15% before getting a mortgage under new rules.
20:40 December 20, 2010 by americanska
Everyone give Nemi a hand....she if the first douche on this tread to try and claim they have loads of money.
22:00 December 20, 2010 by Rishonim
@123abcd1983 & Nemesis. You are right. I bought my properties in 2002 ;-)
02:22 December 21, 2010 by avatar
Nemesis, you are either very rich or very old (may be both) ;)
11:55 December 21, 2010 by steve_38
House prices are dirt cheap in Sweden in general and Stockholm is rather cheap. I think most places in the Uk are more expensive than Stockholm.

One of the great things about Sweden is how cheap houses are.
07:35 December 22, 2010 by mkvgtired
The only problem with this study is many major metro areas are left out of the study. If you look major metro areas like San Francisco, LA, and other major markets are not studied. San Fran surpassed Manhattan (NYC) levels for several years, and is still up there. The global property guide acknowledges that it left out several major metro areas on their website, but it does offer a somewhat skewed listing because of these omissions.
18:48 December 22, 2010 by planethero
great post bjorkon!
16:13 December 23, 2010 by fikatid
The bidding process of buying a house got to be changed. You can actually have your friends pretend to be buyers and bid up the price. If they win the bid, they can decline and the next high bidder will be next. I think this is absurd.
01:26 December 24, 2010 by Beavis
Survey is meaningless, only 34 countries? which 34? Random? In Dublin for example you would pay 5 times more than Stockholm minimum, even after the housing crash!
Today's headlines
Sweden's Ericsson sues Apple in patent spat
Photo: TT

Sweden's Ericsson sues Apple in patent spat

Swedish telecoms group Ericsson announced Friday a lawsuit against US tech giant Apple claiming that its technology was used in iPhones and other wireless devices despite a lapsed licencing agreement. READ  

IN PICTURES: Swedes in 'ring of peace' protest
Photo: TT

IN PICTURES: Swedes in 'ring of peace' protest

Up to a 1000 Swedes turned out to form a human shield around Stockholm's synagogue on Friday as a protest against extremism. Here are some images from the event. READ  

Swedes in 'ring of peace' synagogue protest
Photo: TT

Swedes in 'ring of peace' synagogue protest

A human shield of up to a 1000 Swedes staged a protest against extremism outside the Stockholm synagogue Friday in response to the Copenhagen shootings earlier this month in which two people died. READ  

Swedes to form 'ring of peace' at synagogue
A ring of peace around a synagogue in Oslo. Photo: Håkon Mosvold Larsen/NTB scanpix/TT

Swedes to form 'ring of peace' at synagogue

UPDATED: Hundreds of young Swedes were set to form a 'ring of peace' around a synagogue in Stockholm on Friday afternoon, in a show of solidarity two weeks after Jews were among those targeted in a pair of deadly shootings in Copenhagen. READ  

Sweden raps 'brutal' Assyrian abductions
Assyrians citizens during a sit-in for abducted Christians in Beirut, Lebanon on Thursday. Photo: TT

Sweden raps 'brutal' Assyrian abductions

Sweden's Foreign Minister Margot Wallström has slammed the abduction of Christians in Syria earlier this week and pledged to keep supporting communities affected by the ongoing fighting in the Middle East. READ  

Escalator return stalled in Swedish capital
Commuters using some of the stationary escalators in Stockholm. Photo: TT

Escalator return stalled in Swedish capital

Commuters in Stockholm are set for more frustration next week, with 39 escalators set to remain switched off at some of the city's busiest underground stations, following an accident a fortnight ago. READ  

Copenhagen shootings
Third arrest over fatal Danish terror shootings
The window of the Copenhagen cultural centre where one man was shot. Photo: TT

Third arrest over fatal Danish terror shootings

A man has been arrested for "complicity" in the Copenhagen shootings that killed two people earlier this month, with the Swedish artist Lars Vilks among the presumed targets of the attacks. READ  

Swedish firm to fund huge Danish wind project
Vattenfall's Stockholm office. Photo: TT

Swedish firm to fund huge Danish wind project

A massive new offshore wind farm off the west coast of Denmark is being built by the state-owned Swedish company Vattenfall, it has emerged. READ  

Copenhagen shootings
Sweden artist talk halted after Denmark attacks
Swedish artist Lars Vilks. Photo: TT

Sweden artist talk halted after Denmark attacks

A planned lecture at Sweden's Karlstad University by the controversial Swedish cartoonist Lars Vilks, the presumed target of the terror attack at a cultural event in Copenhagen earlier this month, has been scrapped by organisers. READ  

Surprise growth spurt for Sweden's economy
Sweden's economy is growing faster than expected. Photo: TT

Surprise growth spurt for Sweden's economy

Sweden's economy grew more than expected at the end of last year, with GDP rising by 1.1 percent between the third and fourth quarter, according to new figures from Statistics Sweden. READ  

RECEIVE OUR NEWSLETTER AND ALERTS
Gallery
IN PICTURES: Super cute sloth twins charm visitors to Swedish zoo
Lifestyle
Meet Sweden's first woman chef to win a Michelin star
Lifestyle
What's on in Sweden: February 26th - March 5th
Accelerated for Ice Music
What is Bob Dylan's guitarist doing in northern Sweden?
Features
How well do you know Sweden's top celebrity couples?
Blog updates

27 February

Editor’s blog, February 27th (The Local Sweden) »

"Our most read story this week got picked up by global media from Al Jazeera to..." READ »

 

18 February

The mysterious -s, part 2 (The Swedish Teacher) »

"-s expressing “each other” (reciprocal verbs) You have most likely used this form of the verbs..." READ »

 
 
 
Business & Money
Are company boards 'too white' in Sweden?
Sponsored Article
Ten tips for succeeding as a start-up in Sweden
Gallery
People-watching: February 25th
Technology
Sweden is dubbed second most 'digital' nation in European Union
National
Why more Swedes want a sex change
National
The return of Sweden's Ace of Base
National
Why has Julian Assange's case been going on for so long?
National
'21' or 'IS'? Swedish police confuse birthday with Islamist extremism
National
Spring has sprung in Sweden
Gallery
Property of the week: Ängelholm
National
How to never miss your favourite weekly features on The Local
Business & Money
Ten Swedish start-ups you haven't heard of (yet)
National
Is Sweden home to the world's oldest living cat?
Gallery
IN PICTURES: The life and career of Fredrik Reinfeldt
Gallery
IN PICTURES: Princess Estelle through the years
National
Why are Swedish Jews worried?
Sponsored Article
Tourist or lifer: what sort of expat are you?
Gallery
People-watching: February 19th-22nd
National
'Racist' bird names banned in Sweden
Lifestyle
What's on in Sweden this week
National
Nobel prize to go under hammer
National
Swede named 'Fanny' banned from getting UK loyalty card
National
Spotlight on the Swedes that could be funding Islamists
Sponsored Article
Are you an American expat? How to face FATCA
Gallery
People-watching: February 18th
National
Is a chocolate crime wave sweeping across Sweden?
National
What we know about the Copenhagen shootings suspect
National
Danish Ambassador: 'We'll live our lives the way we always have'
National
What does this '90s pop act have to do with a former minister?
Lifestyle
How to embrace Sweden's creamy semla bun tradition
National
Did this Swedish hotel really refuse a gay couple?
National
Why are so many escalators down on Stockholm's Metro?
Gallery
Property of the week: Kungsbacka
National
Can Zlatan's tattoo stunt help end world hunger?
Gallery
People-watching: February 14th
Lars Vilks
National
Who exactly is controversial Swedish cartoonist Lars Vilks?
Lifestyle
VIDEO: How to tackle Sweden's bizarre mating rituals
Sponsored Article
'Immigration is critical' for Stockholm’s future
Lifestyle
How to make traditional Swedish blackberry pie
National
What the weak krona means for expats and visitors to Sweden
National
What's in a Swedish meatball?
National
Spotlight on 32 Swedish Isis fighters killed in Syria and Iraq
Sponsored Article
Stockholm job fair helps immigrant entrepreneurs
Latest news from The Local in Austria

More news from Austria at thelocal.at

Latest news from The Local in Switzerland

More news from Switzerland at thelocal.ch

Latest news from The Local in Germany

More news from Germany at thelocal.de

Latest news from The Local in Denmark

More news from Denmark at thelocal.dk

Latest news from The Local in Spain

More news from Spain at thelocal.es

Latest news from The Local in France

More news from France at thelocal.fr

Latest news from The Local in Italy

More news from Italy at thelocal.it

Latest news from The Local in Norway

More news from Norway at thelocal.no

1,007
jobs available
PSD Media
PSD Media is marketing company that offers innovative solutions for online retailers. We provide modern solutions that help increase traffic and raise conversion. Visit our site at:
psdmedia.se