• 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)

Don't miss...X
Left Right

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
Late summer sun set to hit Sweden

Late summer sun set to hit Sweden

Forecasters have predicted sunshine across Sweden this week, with a warm front moving in from Russia and temperatures of up to 25C. READ  

International police hunt
Swedish killer arrested after European hunt
Photo: Police

Swedish killer arrested after European hunt

UPDATED: Police arrested a man on Tuesday afternoon after he went missing from a psychiatric ward in western Sweden at the weekend. The man had been convicted of murdering a five-year-old schoolgirl in 2003. READ  

Music
The five best Swedish songs of the month
Swedish singer Tove Lo. Photot: TT

The five best Swedish songs of the month

The summer may be (almost) over but the music will keep on playing here at The Local. Our resident music guru Paul Connolly will be selecting his top new Swedish tracks for us in a new monthly feature. READ  

Hedgehog pet craze sweeps Sweden

Hedgehog pet craze sweeps Sweden

African pygmy hedgehogs are being bought by growing numbers of Swedes, as a trend for keeping exotic pets sweeps the country, the Department for Animal Welfare and Health tells The Local. READ  

Poisonous mushrooms cause stir in Sweden
The mushroom in this picture is not the same as the one from the story. Photo: Shutterstock

Poisonous mushrooms cause stir in Sweden

A person selling freshly-picked mushrooms in Gothenburg has come under fire after it turned out the delicacies were not only poisonous but also hallucinogenic. READ  

Pirate Bay founder case starts in confusion

Pirate Bay founder case starts in confusion

The largest hacking case in Danish history began in confusion on Tuesday, after lawyers representing Swedish Pirate Bay co-founder Gottfrid Svartholm Warg accused the prosecution of "unreasonable" tactics. READ  

Swedfund joins H&M in Ethiopia expansion

Swedfund joins H&M in Ethiopia expansion

As H&M expands into Ethiopia, Sweden's state venture capital unit Swedfund has announced that it will back the clothing giant, in a move hoped to create more jobs for local women. READ  

Elections 2014
Social Democrats reveal election manifesto
Photo: TT

Social Democrats reveal election manifesto

UPDATED: Sweden's main opposition party the Social Democrats has revealed its election manifesto at a press conference at a high school in Stockholm, with a key focus on education and welfare benefits. READ  

Teen run over by train after 'shoplifting' chase

Teen run over by train after 'shoplifting' chase

A teenage boy is in a critical condition after he was hit by a passing metro train in Stockholm. The accident ground rail traffic to a halt, and has police suspecting attempted murder. READ  

Swimrun
Record win at Sweden's tough island race
Photo: Jakob Edholm/ÖTILLÖ14

Record win at Sweden's tough island race

Two Swedes crushed last year's course record at the Swimrun world championship in Stockholm's archipelago on Monday. READ  

RECEIVE OUR NEWSLETTER AND ALERTS
Lifestyle
The five best Swedish songs of the month
Sponsored Article
Introducing… Insurance in Stockholm
National
Huge clear up underway after Skåne floods
Politics
Sweden's Alliance reveals full manifesto
Tech
Sweden's highest peak to lose title next year
Blog updates

02 September

America night (Blogweiser) »

" There was an event this weekend for the ‘Americans in Sweden’ Facebook group. I’m a member, and I brought my girls to the evening. The gathering was at a Boston-themed sportsbar in a mall. There were loads of screens, a bowling alley, a game room and a jumbotron. It was as good a place as any to..." READ »

 

25 August

Hit och dit, här och där (The Swedish Teacher) »

" Hej igen! A common challenge for Swedish language students are the location adverbs hit/här, dit/där, hem/hemma etc. Some of the location adverbs come in two versions. We should use one type of location adverb when we use a verb describes where we are, and we should use the other type of location adverb when we the verb..." READ »

 
 
 
Politics
How immigration became a key election issue
Society
Brit's life in Sweden becomes BBC radio show
Gallery
People-watching August 27
Gallery
Top ten false friends in Swedish
National
Roma advocate scoops Wallenberg prize
Society
Meet the man who made a Swedish store recall its high heels for kids
Business & Money
'How I came to run my own business in Sweden'
Politics
Expert explains why Sweden's election oozes uncertainty
National
City plays Schindler's List theme at Nazi rally
Society
For Stockholm Fashion Week, here's the A-Z of Swedish fashion
National
'Amnesiac' man avoids deportation for ten years
Gallery
Princess Estelle through the years
Business & Money
Swedish city all set for six-hour workday trial
Business & Money
Five golden rules for the Swedish job hunt
Sponsored Article
Graduates: Insure your income in Sweden with AEA
Gallery
People-watching August 22-24
National
Armed royal guards caught (very) drunk on the job
National
Sweden orders textbook on Roma discrimination
Gallery
Violent anti-Nazi demonstrations in Malmö
Society
A closer look at Sweden's five official minority languages
Sponsored Article
Find out what gives this Swedish school executive appeal
Sponsored Article
Introducing...Your finances in Stockholm
Sponsored Article
Introducing...Housing in Stockholm
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

757
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