Property bubbles common in Sweden

Sweden, Finland and Denmark have, together with England, accounted for half of all price bubbles on the world property markets in the past 25 years, credit rating company Standard & Poor's has shown in a new study.

The study, carried out by seven senior analysts from Standard & Poor’s, predicts a more stable future, following large rises in European property prices over the past decade.

The analysis shows that the European property market is heading for a soft landing. This will mean that the current high level of property price increases will level off in the near future.

Spain is running the largest risk of a property crash of the kind experienced in Sweden in the early nineties. But even in Spain a soft landing is the more likely scenario, the credit analysts say.

But it is still possible that things could get much worse, according to the analysts’ worst-case scenario.

“Two-figure price increases cannot continue forever, and there are legitimate grounds for warning that the property boom could turn into a crash,” writes Standard & Poor’s European head economist Jean-Michel Six.’

TT/The Local

Are you worried about a property crash? Discuss here

Properties in Sweden