Swedish property prices rise and fall

Country:  Sweden

25 September 2008  

The average price of an apartment in Sweden continues to depreciate while house prices are still rising.

A report compiled by property company Mäklarstatistik shows that the median price of an apartment in Sweden has fallen by 3% over the past three months.

The greatest apartment price falls have been recorded in Malmö, both greater and central Stockholm, as well as greater Gothenburg, where average prices have fallen by 3%, 4% and 5% respectively.

Peter Pütsep, head of the Svensk Fastighetsförmedling real estate agency, said: “There is enormous uncertainly in the world right now. And I heard on the news this morning that stock exchanges in Asia had dropped an additional 6 percent. This concern is adding to Swedish households' worries about the future.”

Swedish house prices, conversely, have bucked the downward trend, appreciating 3% in Stockholm and Malmö, and by 4% in Gothenburg, over the past three months.

The price of property in Sweden is generally expected to continue to fall over the coming months, with a downturn for house prices also projected.

“They [houses] are more slow-moving than apartments. The changes show up earlier for apartments,” said Pütsep.

The statistics are based on sales figures from 11,361 apartments, 16,782 houses, and 4,070 holiday houses between June and August 2008.

Related news
The US Federal Reserve (FED) is making £16.1bn available to the central bank in Sweden, along with the banks in Australia, Denmark, and Norway, to ease money markets.

The Federal Reserve said it would take "further steps" if necessary.
Commercial banks in each country can access the £16.1m in the form of loans to increase short-term funding requirements. The central bank in Sweden will have access to around £5m.

Central banks worldwide have been taking initiatives to boost the availability of funds in light of the credit crunch. With the emergence of the sub-prime crisis and a huge rise in defaults on loans, banks have been increasingly reluctant to lend to each other. This in turn has made it harder for businesses and individuals to gain access to credit.

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