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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

Apartment prices in Sweden plummeted 11 percent in December, ending a year marked by flat or declining real estate prices across the country, according to new statistics.

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)

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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.
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