Property prices continue to rise in Sweden despite the pandemic

Property prices continue to rise in Sweden despite the pandemic
File photo of an apartment viewing in Sweden. Photo: Tomas Oneborg/SvD/TT
The corona pandemic has not yet caused the Swedish property bubble to burst, with prices still rising.

During the first two weeks of August, property prices increased 0.7 percent in the Stockholm area and 0.3 percent in Gothenburg, according to real estate agent Valueguard's property index.

In July, the index reports a 2.0 percent month-on-month price increase nationwide.

That translates into a 1.8 increase for bostadsrätter (a common form of apartment home ownership in Sweden) and 2.1 percent for detached homes, with prices rising for both in Sweden's three largest cities.

The Swedish housing market has not followed the usual summer patterns, as The Local has previously reported, even without considering that economists had expected the pandemic to make people less eager to buy or sell.

In normal times, the summer is usually a slow period for property sales, but more than 25 percent homes changed hands across Sweden in July compared to the same month last year.

In Stockholm the figure was even higher: around 60 percent according to Valueguard's research.

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“The property market is of course not immune to external circumstances and many are surprised by this development. The trends on the property market now depend on how unemployment develops in the near future,” said Claudia Wörmann, economist at state-owned mortgage bank SBAB, in a statement.

Swedish vocabulary

detached house – (en) villa

apartment – (en) lägenhet

property – (en) fastighet

housing market – (en) bostadsmarknad

estate agent – (en) mäklare

Properties in Sweden

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