The price tag for a detached house in Sweden rose two percent in May, while the price of an apartment increased one percent.
This means that year-on-year, house prices have increased by a whopping 20 percent and apartment prices 13 percent, according to the latest report by Swedish real estate number-crunchers Svensk Mäklarstatistik.
This is the first time since its records began that property prices show a double-digit increase year-on-year in all of Sweden’s three biggest cities, with apartment prices rising 11 percent in Gothenburg, 12 percent in Stockholm, and 20 percent in Malmö, southern Sweden.
In terms of detached homes, the corresponding price hike in the cities is 19 percent in Greater Gothenburg, 23 percent in Greater Malmö and 24 percent in Greater Stockholm. The average price of a house in Greater Stockholm in May was 7.4 million kronor, 6.0 million kronor in Greater Gothenburg and 5.6 million kronor in Greater Malmö (and a national average of 4.3 million kronor).
As The Local has previously reported, estate agents of Sweden talk of a “pandemic effect”, which has meant that the price of larger detached houses and country cabins has risen faster than the price of apartments.
An increase in home-working, they argue, has meant that people have begun to value having an extra room more than a shorter travel time to their workplace, while travel constraints as a result of the pandemic led to a rush to buy country getaways.
“We’re now seeing an increasing rate of vaccinations and how society is slowly opening up. It remains to be seen how it will affect the housing market, but it is not unlikely that price increases will slow down somewhat as our consumption patterns increasingly fall back to what they were before the pandemic,” said Björn Wellhagen, CEO of real estate organisation Mäklarsamfundet, in a statement.