• Sweden edition
 
Swedish apartment prices suffer steep drop

Swedish apartment prices suffer steep drop

Published: 17 Jan 2012 10:25 GMT+01:00
Updated: 17 Jan 2012 10:25 GMT+01:00

Prices for detached homes, however, remained more or less stable for the month.

Apartment prices in Stockholm and Malmö fell by 3 and 7 percent respectively, reported real estate statistics service Mäklarstatistik.

Global financial turbulence as well a large supply of housing were cited as reasons behind a broad decline in the Swedish housing market during the last six months

The price fall has been especially apparent for the detached homes over the latter half of 2011.

And while prices for tenant-owner apartments (bostadsrätter) had resisted steep falls for much of the year, prices nevertheless experienced a major dip in December, falling 11 percent on average nationwide.

“The development we had during autumn has been continued with a large supply and a downward trend in prices,” Peeter Pütsep, CEO of the real estate agency Svensk Fastighetsförmedling, told the TT news agency.

The drop in prices was widespread across Sweden in 2011, but the extent varied around the country.

Throughout 2011, home prices have fallen in almost all of Sweden’s counties.

The average apartment price has gone down by one percent nationwide over the last year, while home prices have fallen by 4 percent.

”There has been a gradual downward trend and it’s reasonable to believe that this will continue throughout 2012, as long as the chaos in the financial markets continues,” said Pütsep.

During the autumn, sellers often checked to see how much their neighbours got for their home when the prices were at a premium and had expectations that were too high, while the buyers noted that the prices fell during the same period.

On the plus side, there is a chance that interest rates will remain at roughly the same level as they are today, or even drop over a longer period, thereby stabilizing the prices.

"It's hard to say how prices will develop in 2012," Pütsep said in a statement.

"We've received signals of some increased activity in the market, but it's too early to draw any lasting conclusions."

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

Your comments about this article

11:25 January 17, 2012 by HYBRED
Tell us again Anders Borg how great the ecomomy is. Couple this story with the loss in value of retirement stock portfolio's and most are going freakin broke,
12:28 January 17, 2012 by the fonz
@ #1

Would you prefer to have an economy in the same condition as most of Europe ??
12:31 January 17, 2012 by Mib
Compared to other countries, Sweden is doing well. No austerity measures, business conditions are ok.....but of course subject to outside issues as Sweden is dependent on Exports. But still doing ok considering the stong kroner. Property prices...go up and go down...it's not real money!! Easier for 1st time buyers to get on the ladder...so advantages in that respect.
13:43 January 17, 2012 by HYBRED
@ #2

The point is that the Swedish economy is not much better than the rest of Europe.
15:07 January 17, 2012 by babashki
You know why they fell in Malmö?

Immigrants.

- Ethnically confused Jordanian
17:25 January 17, 2012 by bells on the knight
err "swedish economy not much better than rest of europe"? well it was a long time since i read such uneducated drawel. sweden has among the highest GDP and lowest debt to GDP ratios in the EU.

http://en.wikipedia.org/wiki/Economy_of_the_European_Union
19:45 January 17, 2012 by HYBRED
Naturally you forget to mention that GPD has been in a downward slide for the last 3yrs.
13:24 January 18, 2012 by caradoc
@babashki

It seems in every item on this website there is some racist idiot wanting to blame immigrants for every problem that occurs.

Boring and incredibly shortsighted
13:43 January 18, 2012 by Puffin
A more accurate headline would be "Big City Apartment Prices Fall" as the report showed that some areas are still increasing in price

In Dalarna for example

- last 12 months apartment prices UP by 10%

- last 3 months apartment prices UP 6%
14:31 January 18, 2012 by Danne8
@babashki

hahaha! good one!

@caradoc

you obviously didn't get the sarcasm in the joke
23:51 January 19, 2012 by white_man
Real estate prices across the Western industrialized countries have been kept artificially high through immigration.

The principle of supply and demand isn't racist, so there's no point in bringing up racism to silence critics of immigration.

The property owners, developers and speculators have been treated with unusual courtesy by government immigration policies of the last 40 years. It has made them rich, at the expense of the commons.
Today's headlines
Business & Money
American sales squeeze Ericsson profits
Ericsson CEO Hans Vestberg presents the third-quarter earnings report at the company's headquarters in Kista. Photo: Janerik Henriksson/TT

American sales squeeze Ericsson profits

Swedish telecoms equipment maker Ericsson reported a decline in net profit in the third quarter despite an increase in sales, boosted by business in emerging markets. READ  

Interview
'Too many concerts feel the same'
Sofar hosts secret gigs in Swedish apartments. Photo: Sofar

'Too many concerts feel the same'

Kattis Bjork founded Stockholm's secret gig scene - Sofar - a year ago. The Local caught up with her as she prepared to celebrate the project's anniversary this weekend and revealed the concept will spread to other Swedish cities in 2015. READ  

Stockholm 'sub hunt'
Sweden calls off suspect submarine search
Ships are returning to shore in Sweden. Photo: TT

Sweden calls off suspect submarine search

The core search for a suspected foreign vessel in Swedish waters has been called off. The armed forces said they remained convinced foreign underwater activity had taken place but had not identified an intruder. READ  

Business & Money
US and Japan fuel surge for Volvo trucks
Ed Carbaugh prepares to install parts on a truck engine on an assembly line at Volvo Trucks' powertrain manufacturing facility in Hagerstown, Maryland, March 2014. Photo: Patrick Semansky/AP

US and Japan fuel surge for Volvo trucks

Sweden's Volvo, the world's second-largest maker of trucks, said Friday it saw a spike in profits in the third quarter, boosted by thriving sales in the US and Japanese markets. READ  

Inspectors attacked at rogue doc’s surgery
Cigarettes and beer photo: Shutterstock

Inspectors attacked at rogue doc’s surgery

Inspectors who were sent to shut down a doctor’s surgery in Gothenburg were physically attacked and fled the premises to get help from the police. READ  

Police turn Swede’s vodka into water
A Swede loads a car with alcohol in northern Germany. File photo: Drago Prvulovic/TT

Police turn Swede’s vodka into water

Swedish police say they will pay a man 16,000 kronor ($2,200) in damages after much of the alcohol they confiscated from him was stolen, while many of the bottles they returned were filled with water. READ  

Diplomacy
US to get first female ambassador in Sweden
File photo: Athena Center for Leadership Studies

US to get first female ambassador in Sweden

The United States Embassy in Stockholm is set to get its first female ambassador after the White House announced it was nominating the Iranian-American ex-investment banker Azita Raji to take over from Mark Brzezinski. READ  

Neo-Nazi attacks
Neo-Nazis cleared of knife attack on Nigerian
Police intervene after neo-Nazis attack an anti-Nazi rally in Kärrtorp, December 2013. Photo: Hampus Andersson/TT

Neo-Nazis cleared of knife attack on Nigerian

A Stockholm court has cleared three neo-Nazis of stabbing a Nigerian man in an unprovoked attack. But two of the men will face jail after they were convicted of racial agitation at a riot. READ  

Julian Assange
Assange court ruling expected on Monday
Julian Assange at Ecuador's embassy in the UK. Photo: Anthony Devlin

Assange court ruling expected on Monday

WikiLeaks founder Julian Assange can expect the next court ruling on his case to take place on Monday October 27th in Stockholm. READ  

Politics
Sweden to get EU 'Christmas present'
Sweden's Prime Minister Stefan Löfven at an EU summit in Brussels this week. Photo: TT

Sweden to get EU 'Christmas present'

Sweden is set to get 1.2 billion kronor ($168 million) back from the EU on December 1st, according to leaked EU documents which suggest that other European countries will have to make large top-up payments this year. READ  

RECEIVE OUR NEWSLETTER AND ALERTS
Lifestyle
What's On in Sweden: October 24th - 31st
Gallery
People-watching: October 22nd
Gallery
In Pictures: Prince Carl Philip and Sofia Hellqvist
Lifestyle
Eight things to love about renting a Swedish apartment
National
Vasa ship cannon blasted in Sweden
Blog updates

24 October

Editor’s blog, October 24th (The Local Sweden) »

"Hi readers, Get ready to read our weekly digest of Swedish news in less than 60 seconds. The..." READ »

 

24 October

Is darkness weather? (Blogweiser) »

"I try very hard not to talk about the weather. This has come after a decade..." READ »

 
 
 
National
Sub hunt: Day-by-day
National
Sub hunt: Stockholm islanders share their fears with The Local
Sponsored Article
The best options for oversea transfers
National
Get 20% off unique Swedish homeware
National
Dentist gives free care to Roma beggars
Business & Money
Get your own office in Gothenburg or Stockholm - free for a day
Gallery
Property of the week: Malmö
Gallery
PHOTOS: 'Foreign activity' in Swedish waters
Gallery
People-watching: October 19th
TT
Society
QUIZ: How good is your Swedish?
Lifestyle
What's on in Sweden: October 17th - 24th
Society
The nudity... and nine other things expat men notice in Sweden
Gallery
People-watching: October 15th
Gallery
Your views: Should outdoor smoking be banned in Sweden?
Business & Money
Sweden has 'large hole' in finances
Sponsored Article
Introducing... Finding a job in Stockholm
Society
Monster salmon caught in northern Sweden
Gallery
Property of the week: Lorensberg
National
Scandinavia's child bride
National
Ebola crisis: How is Sweden preparing?
Business & Money
How Sweden is becoming a cashless society
Gallery
Stockholm Burlesque Festival 2014
National
How a little red horse became a symbol for Sweden
Gallery
People-watching: October 12th
Business & Money
The hottest start-ups from southern Sweden
National
What's on in Sweden: October 10th - 17th
National
Stockholm is 'best' region for well-being
Gallery
People-watching: October 8th
National
Five facts to know about Patrick Modiano
Society
My Swedish Career: A French fashionista in Sweden
Society
Swede's anti-bully Facebook tale goes viral
Society
Have you seen Sweden's viral subway cancer campaign?
National
Isis: Swedes linked to Turkish prisoner swap
National
Should Swedes be banned from buying sex abroad?
Gallery
Fredrik Reinfeldt's leaving presents
National
Five Swedish TV shows you shouldn't miss
Gallery
A tool belt, a casserole, and a book. Fredrik Reinfeldt's parliament gifts
TT
Lifestyle
Top five winter festivals in Sweden
TT
National
Sami reindeer herders win mine reprieve
Gallery
Property of the Week: Gamla Enskede
Sponsored Article
How to catch the first lobster of the year
Team SCA
Sponsored Article
All-female SCA team takes off on Volvo Ocean Race
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

979
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
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:
http://psdmedia.se
If you want to drink, that’s your business.
If you want to stop, we can help.

Learn more about English-language Alcoholics Anonymous in Sweden. No dues. No fees. Confidentiality assured.
AA-EUROPE.ORG/SWEDEN