House prices continue to rise

Swedish house and apartment prices have continued to rise over the past few months, according to new figures. The effects of the recent rise in Swedish interest rates will only be clear in a few months, says Statistics Sweden, which has compiled the house price figures.

Prices of houses and apartments both rose over the past three months.

House prices across the country rose by 3 percent in the three months November-January, compared to August-October. Compared to the same period a year ago, prices were up by 11 percent.

Prices in the greater Stockholm area were up by three percent compared to the previous period. In greater Malmö this figure was 2 percent, and in greater Gothenburg it was 1 percent.

The county with the highest increase was Östergötaland, with a 6 percent increase between the two periods. In Värmland and Gävleborg prices increased by 5 percent, Statistics Sweden recorded.

In Jämtland prices remained the same, whereas they fell in Gotland and Halland.

Statistics Sweden said that the effects of January’s interest rate increase will not be immediately apparent, because of the time it takes to complete a house sale. The statistics are recorded when the buyers take ownership of their new properties, usually several months after they went on the market.

The average price of a detached house in Sweden has now passed the 1.5 million kronor mark. The average price is now over one million kronor in 11 counties. The lowest average price is in Västernorrland, where houses sell for an average of 750,000 kronor.

Apartment prices have risen by 12 percent over the past twelve months, according to figures from Mäklarstatistik. The large cities are leading the way, with prices in Gothenburg set to rise further.

The statistics are based on 9,454 apartment sales between November 2005 and January 2006. Price rises in the past year have been greatest in central Gothenburg, where they were up 33 percent. In central Stockholm prices were up 24 percent, with the average apartment now costing 2.5 million. Prices in central Malmö have risen 19 percent.

TT/The Local