Swedish house prices soar to new high

Swedish house prices rose four percent between May and July, according to official figures released today. The average price of a detached, semi-detached or terraced house in Sweden is now 1.4 million kronor.

The figures, from Statistics Sweden, show few signs that Sweden’s property boom is abating. While average prices rose four percent compared to the previous three months, they rose by eight percent compared to May-July 2004.

Property prices varied widely across the country. The biggest rise compared to the period February-April was in the county of Värmland, where prices were up 12 percent. Even the major cities, which already have the highest house prices, saw values rise by close to the national average.

In the greater Gothenburg area prices rose by five percent to an average of 2.13 million kronor. In greater Stockholm, a rise of four percent took the average up to 2.6 million, making the capital the most expensive place in Sweden to buy a house. Out of the big cities, only Malmö showed a below-average rise, with prices increasing by just two percent to 2.04 million kronor.

Jämtland was the only area of Sweden in which house prices were lower than in the previous period. Here, householders saw the values of their properties decrease by five percent. They were also down by one percent on the same period in 2004.

The statistics showed that the cheapest place to buy a house was Västra Norrland, where the average property costs 679,000 kronor. Prices in this region rose by the national average, four percent, between May and July.

Properties in Sweden