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HOUSING

City property prices continue to cool

Apartments prices fell in Stockholm and Gothenburg in May, with house prices remaining stable, according to new broker statistics which show that supply remains larger than normal.

“The market right now is characterized by a wide selection of objects. The price increase we have seen in recent years have thus started to wane, especially in big cities,” said Lars-Erik Nykvist CEO at estate agent Fastighetsbyrån.

The figures indicate that the Stockholm market continues to cool off after a long period of booming prices. Apartment prices in central and suburban areas fell by 1 percent in May, according to Mäklarstatistik figures.

Gothenburg apartment prices fell by 2 percent in both inner city and suburban areas, while Malmö bucked the negative trend with prices in central areas climbing 2 percent while remaining still in the suburbs.

National statistics showed a climbed in apartment prices in May however, thanks to booming markets in other smaller cities.

House prices remained unchanged nationwide with 1 percent rises in Stockholm, and 2 percent in Malmö and Gothenburg.

Lars-Erik Nykvist underlined however that the changes remained relatively slight.

“Price changes are small and we see that there are buyers for this very large supply. For us it is a matter of having 16 percent more items up for sale, in comparison with May last year.”

He argues that the large supply of housing in part due to a hangover from the icy winter which left the residential market in the deep freeze.

“We are not forecasting any major changes even if the first interest rate increase draws near. Both banks and households have ensured a margin and interest rate rises as well as the introduction of a mortgage ceiling will not come as a surprise to anyone.”

The market performing strongest on an annualized basis is for second homes, with prices up 5 percent on May 2009. Over the past three months national apartment prices have climbed by 3 percent and house prices by 2 percent.

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HOUSING

INTERVIEW: International students ‘vulnerable’ to Swedish housing shortages

People moving to Malmö to study now have to wait as long as a year to receive accommodation, Milena Milosavljević, the president of the Student Union in the city, has told The Local. The situation, she says, is "urgent and acute".

INTERVIEW: International students 'vulnerable' to Swedish housing shortages

The Sofa Project, run by the Student Union Malmö, received 80 applications this year from students who wanted to rent short-term accommodation, showing just how acute the current housing shortage is.

These 80 applicants were vying for one of seven spots, ranging from a spare room to a sofa bed – from hosts who sign up to offer their spaces to new arrivals.  As the programme only had seven hosts registered this year, the project had to close its application page to others, otherwise the number would have surpassed 80.

“They are ready to come to Malmö and sleep on a sofa bed at a stranger’s house before they find accommodation,” Milosavljević told The Local. 

Malmö recently received a red designation from the Swedish National Union of Students, which publishes an annual report assessing the housing situation in university towns and cities across Sweden. A red designation means that finding suitable accommodation as a student takes more than one semester. The report found that 61 percent of students live in a city that has been designated a red ranking.

READ ALSO: Sweden’s student union warns that housing shortages are back this semester

“The reality of Malmö and the reason why it became red is that to find suitable accommodation you have to wait up to a year,” Milosavljević said.

Some individuals, she said might have to wait up to three years to find their own accommodation, making do with second-hand contracts, long commutes, and living with family members in the meantime. For newly-arrived international students, who lack personal numbers when they move here and so cannot join Swedish housing queues, looking for suitable housing becomes a complex task.

“International students are more vulnerable because they don’t have a personal number to enter the system before they come to Sweden,” Milosavljević explained.

Milosavljević herself moved to Malmö as an international, fee-paying student. Because she paid tuition, she was offered housing by Malmö University. Based in part on her own experience, Milosavljević explained that the housing issue cannot be reduced to a shortage in the number of flats and rooms. There is also a shortage of appropriate housing options for different needs.

“They offered me accommodation in a student building,” she said. “Not an apartment, but a room – and I came with my husband. The room was not enough for two of us.”

Student accommodation must accommodate the different needs of different members of the student body, Milosavljević said, including those who move with partners or spouses, or even with their children.

In the past year, one new student apartment building was built in Malmö, with 94 new spaces for the city’s student body. This is inadequate, Milosavljević said. While Malmö is growing, and there is residential construction being carried out around the city, it is unclear how many of those new buildings will prioritise the city’s student population.

The city’s student population, too, is growing. As the pandemic era ended in Sweden, students returned to campus. And new students joined them. While student ranks grew, housing options remained stagnant.

“From our perspective from the Student Union, we have talked about, in the previous years, how the situation after the pandemic is going to get even worse for the students,” Milosavljević said. “There’s an increase of students coming back, new students, and already not even enough housing.”

Milosavljević has fielded calls and emails from students who say that they cannot move to Malmö because they cannot find housing.

“They are already working on it,” Milosavljević told The Local of the university’s response.

There are plans to create more housing for international students, but these proposals focus mainly on students from European Union, leaving other international students out. All international students should be given priority for student accommodation, Milosavljević said, because none of them have access to the Swedish housing market.

“I do believe strongly that the City of Malmö and Malmö University need to have urgent negotiations and start building straight away,” she said.

Because Malmö University is a public university, it must follow the lead of the Ministry of Education and Research. Milosavljević acknowledged that in the aftermath of Sweden’s recent elections, which put the right-bloc in power, student housing shortages might not rank highly on a list of national priorities.

“The Student Union Malmö considers this situation quite urgent and acute,” Milosavljević said. “We are more than prepared to sit down and talk so we can actually do something, instead of just having meetings. The students will continue to suffer if the living conditions and the bostad [housing] situation in Malmö is not improved.”

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