• Sweden edition
 
Swedish flat prices more than double since 2000

Swedish flat prices more than double since 2000

Published: 18 Jan 2011 10:39 GMT+01:00
Updated: 18 Jan 2011 11:49 GMT+01:00

While Swedish apartment prices have risen by more than 150 percent in the last ten years, housing prices dipped overall in December, according to new statistics.

Prices for tenant-owner apartments (bostadsrätter) in Sweden have risen 153 percent since 2000, but prices dropped by an average of 4 percent across the country in December, fresh figures from the real estate statistics website Mäklarstatistik.

In central Malmö, flat prices fell by 7 percent, while prices dropped by 3 percent in central Stockholm.

However, apartment values in Gothenburg rose by 4 percent.

Prices for small houses and apartments in Sweden remained unchanged in the final quarter of 2010, while the trend for the year as a whole showed a continued price increase.

Despite the December price drop, Lars–Erik Nykvist, the CEO of estate agency Fastighetsbyrån, believes Swedish house prices will continue to climb during 2011.

"December is not a high sales month and isn't typical when it comes to overall sales trends," he told The Local.

Nykvist also saw little risk for a Swedish housing bubble.

"I don’t see any risk for a price bubble in the near term, since demand remains higher than supply," he said.

Part of the reason, Nykvist explained, is the structure of the Swedish housing market.

"From an international perspective, the Swedish housing market has very few properties which people buy as speculative investments," he said.

“In Sweden, people live in the properties they buy. When you buy a tenant-owner flat, for example, the tenant association rules are very clear that you should be living there rather than using it as an investment.”

In the last 10 years, the price of tenant-owner apartments nationwide has risen by 153 percent, while small houses have grown in value by a comparatively modest 72 percent.

In 2000, buyers had to pay 8,314 kronor per square metre ($115 per square foot) for a flat in Sweden. But by the end of 2010, Swedish apartment prices had risen to 21,057 kronor per square metre ($293 per square foot).

In Gothenburg, however, flat prices have more than tripled since 2000, from 5,862 to 18,618 kronor per square metre -- a rise of 218 percent, representing the largest increase in the country in the last 10 years.

Meanwhile, Malmö has seen the biggest jump in small house prices, which have gone up 131 percent in the last decade.

"Price trends have clearly been affected by extremely low interest rates in the last few years and so far the mortgage ceiling hasn't had a marked effect on prices," Peeter Pütsep, CEO of Svensk Fastighetsförmedling, said in a statement.

While Pütsep expects Swedish housing prices to continue rising in 2011, he doesn't expect price increases on par with those of 2010, when tenant-owner apartment prices rose by 7 percent and small house prices rose by 3 percent.

According to Nyqvist the effects of the mortgage ceiling have been marginal at most. The new mortgage cap, which went into effect in October, limits the size of a mortgages to no more than 85 percent of a property's market value.

"It takes a long time for changes like the mortgage ceiling to have an effect," he said.

He added that one trend reported by agents following the introduction mortgage ceiling, however, has been an increase in demand for homes that aren't in need of renovation.

"With the ceiling, it becomes harder for people to then borrow more money to renovate a property. As a result, more people want to buy places where they can move in without having to make and major upgrades," said Nykvist.

TT/David Landes (news@thelocal.se)

Don't miss...X
Left Right

Your comments about this article

13:42 January 18, 2011 by jwlundgren
So, just HOW do you get an apartment in Sweden? When I take the point value on our local landlord website and divide it by days in a year, it looks like there is a ten year waiting list.
14:11 January 18, 2011 by stephaniesp
I live in Lund but I heard it's a nightmare. If you can afford the down payment, you're much better off just buying a place.
14:55 January 18, 2011 by Nemesis
This is beginning to sound more like Ireland five years ago, everyday.

Does no one Swedish see that?

@ stephaniesp

I live in quick commuting range of Lund. What would be a deposit for an apartment in Lund, bought my place outright.

Lund is a good place to live, but the prices are not justifiable, considering how cheap Kvälinge, Eslöv, Höör and Hässleholm on direct railway lines to it.

I like the social life in Lund. Better than Malmö anyday.
15:47 January 18, 2011 by conboy
The housing cost relative to the real value of the properties are ridiculous it is very close to what happened in Ireland and will end in tears. I remember the financial and housing crash of 91 to 95 here in Sweden the market is always wrong sooner or later!!!!
17:54 January 18, 2011 by PINGPONG
what happened in ireland lads ??
21:20 January 18, 2011 by Arturio
are also doubled the salaries?
01:33 January 19, 2011 by Larry Thrash
Look out below!
12:13 January 20, 2011 by Nemesis
@ PINGPONG

Buy a newspaper such as the Financial times.
Today's headlines
Ica pulls contested Easter commercial off TV
Grossed out Ica woman at Easter dinner. Screengrab from Ica

Ica pulls contested Easter commercial off TV

A Swedish supermarket has decided to withdraw its Easter commercial, after Christians complained it made a mockery of communion - "They crossed the line." Sweden's advertising watchdog will now look into the case. READ () »

Dismemberment killer gets sentence cut
The search and rescue operation in northern Sweden. File photo: TT

Dismemberment killer gets sentence cut

The 22-year-old man convicted of murdering his ex-girlfriend in northern Sweden had his sentence reduced on Wednesday, in part due to his "peculiar personality". READ () »

School gas leak sends 25 to hospital

School gas leak sends 25 to hospital

An elementary school in southern Sweden was evacuated on Wednesday and dozens of pupils were taken to hospital after the smell of gas spread through the rooms. READ () »

Swedes vote for country's nicest cock
The Flymen Church weathercock in all its newly gilded glory. Photo: TT

Swedes vote for country's nicest cock

A Swedish churchwarden has reacted with joy upon finding out the parish has Sweden's nicest weathercock. READ () »

Greens push rich tax to finance schools
Per Bolund of The Greens. File photo: TT

Greens push rich tax to finance schools

Sweden's third largest party The Greens revealed its shadow budget on Wednesday, targeting schools and youth employment. High earners would have to pitch in more. READ () »

Holiday status updates 'not a burglary risk'
Ibiza, you say? File photo: Jonas Ekströmer/TT

Holiday status updates 'not a burglary risk'

Mythbusting Swedish researchers have found no link between gushing about your upcoming holiday online and returning to an emptied house. They told The Local that a trip to Ikea could be much more dangerous. READ () »

Woman charged after accusing beggar of theft
The people in this picture are not those from the story. Photo: TT

Woman charged after accusing beggar of theft

A woman in Gothenburg who accused a beggar of robbing her has been charged with fraud and false accusations. READ () »

Swedish royals set baptism date for princess
Photo: Kungahuset

Swedish royals set baptism date for princess

Sweden's royal family has set the date for the baptism of Princess Leonore. READ () »

The Local List
Evidence Game of Thrones is set in Sweden

Evidence Game of Thrones is set in Sweden

With Swedish Game of Thrones fans frothing at the mouth at the season four premiere, The Local revisits its list of ten reasons why the hit books and show are (probably) based in Sweden. READ () »

'Baffling' Swedish raid on German sub makers
The Kockums Malmö shipyard and FMV headquarters. Files: TT

'Baffling' Swedish raid on German sub makers

After the Swedish military raided the Malmö premises of German defence giant Thyssen Krupp, a military expert tells The Local why recent Russian aggression means Sweden's Saab needs to take control of national submarine production. READ () »

RECEIVE OUR NEWSLETTER AND ALERTS
Politics
Who's the prime minister's heir?
Alfie Atkins
Society
Are children's books the key to families integrating in Sweden?
National
'Sweden Dem protests cater to party's martyr image'
National
'Swedish research grants were fantastic, but now it's like Australia'
Society
Only in Sweden: The ten problems you'd never encounter elsewhere
National
Swedes stopped to take my picture, but didn't look me in the eyes
Business & Money
A swipe of the hand replaced cash and cards in Lund
YouTube
Features
Video: Oliver Gee finds out how to embrace The Swedish Hug
TT
National
Abba duo hints at reunion
Private
National
Flash mobs hug it out across Sweden
Finest.se
Gallery
People-watching April 11-13
TT
Politics
Swedes to give six-hour workday a go
Advertisement:
TT
Society
Aussie choir member wows Abba in Sweden
YouTube
Society
Stockholm magic a surprise YouTube hit
Fastighetsbyrån
Society
Gallery: The Local's Property of the Week
Private
Society
Swedes find 200-year-old gravestone in living room
Stockholm School of Economics
Sponsored Article
Why a bachelor's degree is no longer enough
Deepti Vashisht
Features
Deepti Vashisht dissects the magic of Sweden's personal ID number
Shutterstock
Society
Ten signs you've been in Sweden too long
Society
Jimi Fritze heard every word when doctors discussed taking his organs
Society
A Swedish farmer explains why the new bestiality ban is 'pointless'
Society
'Blondes have more brains': Swedish study
TT
Society
VIDEO: Leaked 'Save Slussen' film goes viral
finest.se
Gallery
People-watching, March 28-30
ESL
Sponsored Article
Learning Swedish the easy way
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 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

Blog Update: The Diplomatic Dispatch

28 October 15:16

The Green Growth Group Summit »

"Today on the 28 October in Brussels, a large group of key EU Ministers and business people, including UK Secretary of State for Energy and Climate Change Edward Davey, and Swedish Environment Minister Lena Ek, will meet to discuss green growth. They all have a stake in resolving a challenge which, although it is crucial..." READ »

745
jobs available
Swedish Down Town Consulting & Productions
Swedish Down Town Consulting & Productions is an innovative business company which provides valuable assistance with the Swedish Authorities, Swedish language practice and general communications. Call 073-100 47 81 or visit:
www.swedishdowntown.com