‘Remarkable’: Swedish property prices soar despite pandemic crunch

Property prices are still on the increase in Sweden, including in Stockholm, Gothenburg and Malmö.

'Remarkable': Swedish property prices soar despite pandemic crunch
These houses probably cost more in 2021 than they did last year. Photo: Fredrik Sandberg/TT

Property prices continued to increase by 2.1 percent in March, according to analyst firm Valueguard’s Hox-index, which measures how prices develop in the property market.

The year-on-year increase was meanwhile a whopping 15.5 percent, with the pandemic showing no sign of slowing down the housing market, as The Local has previously reported, despite other negative effects on people’s economy, such as record-high long-term unemployment.

Since the coronavirus pandemic hit Sweden, the prices of detached homes have risen more than 20 percent, which Valueguard said was the largest increase it had ever seen. But the number of houses changing hands remained roughly the same in the same period, it added.

In terms of apartments, however, bostadsrätter (an apartment owned by a housing association and one of the most common forms of home ownership in Sweden) prices went up 8.0 percent, close to how much they normally increase year-on-year. But the number of transactions of such apartments “shot up in a never before seen way”.

“This difference, with soaring house prices and normal transaction volumes, but with normal bostadsrätt prices and soaring volumes, is remarkable,” wrote Valueguard.

The price of a detached home increased 2.8 percent in March compared to February, with apartments up 1.0 percent.

They increased in all of Sweden’s three biggest cities in the same period. In Stockholm, detached homes went up 2.2 percent and apartments 1.1 percent. In Gothenburg, western Sweden, detached homes went up 2.5 percent and apartments 0.8 percent. And in Malmö, southern Sweden, detached homes went up 2.2 percent and apartments 1.2 percent.

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