Apartment price slump continues

Apartment prices in Sweden's three major cities have slumped in recent months, new figures have shown.

The trend is most apparent in Stockholm, where prices have fallen by 8-9 percent over the last three months, according to Mäklarstatistik. Prices in Gothenburg and Malmö have also dropped slightly during the same period, as has the national average.

In central Stockholm, the cost of buying an apartment has slipped back to the same level as in April and May, with prices coming in at just over 52,000 kronor per square metre.

Viewed over a twelve month period, prices have gone up by 16 percent. But the market has cooled considerably since August, when prices reached a record 56,500 kronor per square metre.

House prices on the other hand are continuing to rise, except in Stockholm where they have stood still over the last three months. In the greater Gothenburg and Malmö regions, prices are continuing to climb, though not at the same rate witnessed earlier in the year.

But the recent slump in Stockholm, which usually sets the trend for the rest of the country, does not necessarily mean that prices will continue to fall.

“During the last month, prices in Stockholm fell by just 1-2 percent, so the decline may have already been halted,” said Claudia Wörmann, an analyst for Mäklarsamfundet – the Association of Swedish Real Estate Agents.

“There is however a level of concern on the market. Sellers have had expectations that were a bit too high, but it is starting to stabilize now,” she added.

Mäklarstatistiken’s figures are based on the sales of 16,657 apartments, 14,503 houses and 2,543 holiday homes from September to November 2007.

Over the last twelve months, house prices have increased by 10 percent to a national average of 1,850,000 kronor.

Apartment prices have gone up by 8 percent during the same period, closing out at 1,337,000 kronor nationwide.

Properties in Sweden