EU Residential Update
German housing and property markets are diverse and robust
The German residential property markets are solid, having weathered the financial crisis 2008/2009, and are well-positioned for the future. But they increasingly differ regionally, structurally and in terms of their development prospects. Key indicators in this context are growth and shrinkage, locations and property quality, professionalization and internationalization, and also, increasingly, the energy efficiency of flats and buildings. The property markets are becoming more and more differentiated. In particular, the changes in housing rental prices, property prices and disposable income point to a further increase in the differences between the regional property markets. The gap between „affordable“ and “expensive“ areas has expanded yet again over the past few years. (BBSR)
Finland: Prices of dwellings rose slightly in March
Prices of old dwellings in blocks of flats and terraced houses went up by 0.2 per cent in the whole country in March compared with the previous month. In Greater Helsinki prices fell by 0.3 per cent, while in the rest of the country prices went up by 0.7 per cent. Compared with the corresponding period of the previous year, prices rose by 0.2 per cent in the whole country. In Greater Helsinki prices went up by 1.2 per cent, while in the rest of the country prices went down by 0.6 per cent. (Statistics Finland)
Norway: Highest rent increase for 2-room dwellings
The average monthly rent for all tenants rose 0.8 per cent from the fourth quarter 2011 to the first quarter 2012. The rental market survey showed that the development in average rents has been similar throughout the different geographical regions. As expected, the average monthly rent in Oslo including Bærum showed the highest rent level, with an average monthly rent of NOK 8.961 in the first quarter of 2012. For dwellings with two rooms, rents increased by 1.1 per cent from the fourth quarter 2011 to the first quarter 2012. The lowest increase in this quarter was for dwellings with one room, where rents went up 0.5 per cent. (SSB) House prices increased by 3.5 per cent from the fourth quarter of 2011 to the first quarter of 2012, after a flattening of house prices during the second half of last year. The price increase was about the same for all types of housing. The prices of row houses increased by 3.9 per cent, while flats and detached houses increased by 3.5 and 3.3 per cent. House prices are on average 6.3 per cent higher now than at the same time last year. Flats cost 8.6 per cent more than in the first quarter of 2011, while prices of row houses and detached houses have increased by 6.4 and 5.4 per cent during the same period. (SSB)
Sweden: Unchanged house prices
Real estate prices for one- or two-dwelling buildings were unchanged during the first quarter 2012 compared to fourth quarter 2011. Prices decreased by 2 percent on an annual basis during the first quarter 2012 compared with the same quarter 2011. Increasing prices were reported in 9 out of 21 counties between the two previous quarters. The largest increase in real estate prices was reported in Blekinge County by 6 percent. In the metropolitan areas Greater Stockholm and Greater Malmö the prices increased between 2 and 3 percent, while in Greater Gothenburg the prices decreased by 1 percent. In all of the metropolitan areas prices decreased between 1 and 5 percent on an annual basis. The average price for one- or two dwelling buildings exceeded SEK 1 million in all counties during the first quarter of 2012, while the average price for the whole country was more than SEK 2.1 million. (SCB)
Belgium: Property prices on the rise again in 2011, but slower than in 2010
Property prices increased again in 2011. The average price rises of the different types of dwellings fluctuated between 3% and 4%: Regular houses became 4.1% more expensive. The increase was 5.1% the year before. Villas, bungalows and country houses became 3.5% more expensive. The increase was 6% the year before. Flats became 3% more expensive. The increase was 6.7% the year before. The prices of building plots remained almost stable, while they had increased by 8.6% the year before. (STATBEL)
France: In April 2012, the demand for new dwellings continues to turn sour
According to developers in April 2012 the demand for new homes has declined. The corresponding balance of opinion is well below its long-term average. The contractors also indicate a drop in housing starts, as they are more likely to indicate an increase in their stock of unsold homes this quarter. The survey also reveals that the average price of new homes for sale decreased and the corresponding balance is below its long-term average. (INSEE)
Netherlands: Substantial drop in house prices
Prices of existing owner-occupied dwellings sold in March 2012 were on average 4.7 percent down on March 2011. According to the price index of existing residential property the price drop was more substantial than in the preceding month, when residential property prices were 3.4 percent down on one year previously. The index reflects price changes of existing owner-occupied dwellings in the Netherlands sold to private individuals. Just as in the preceding months, residential property prices fell across all provinces. In the provinces of South Holland and North Brabant, residential property prices have continuously been below the level of one year previously for three consecutive years now. All types of dwellings were cheaper in March 2012 than in March 2011. More than 9 thousand existing owner-occupied dwellings were sold in March. House sales were 13 percent down from March 2011. The downward trend was observed in all provinces and applied to all types of dwellings in decline. (CBS)
Poland: Increasing completions
According to preliminary data, in the period of January-March of 2012 36272 dwellings were completed, i.e. by 31.9% more than in 2011, and by 6.5% more in comparison with the corresponding period of 2010 (against a decrease in those years, respectively by 19.2% and by 18.0%). In the 1st quarter of 2012, 38234 building permits were issued, i.e. by 2.6 % more than in the corresponding period of 2011. The number of dwellings started also grew – to 31365, i.e. by 1.3%. The highest share (56.9%) in the increase of the new housing stock was attributed to private investors who, in the period of January-March 2012, constructed 20645 dwellings, i.e. by 14.8% more than a year before. In this group of investors, a decrease in the number of building permits issued was recorded, in comparison with the previous year – to 19167 dwellings, i.e. by 5.9%. A decrease was also recorded in the number of dwellings started – to 14903 dwellings, i.e. by 9.4%. (GUS)
Baltics capitals: Prices are rising
Apartment prices in Vilnius increased by 0.1% in March 2012. The greatest positive changes in the capital city appeared for old apartments in residential districts (0.4%) and renovated old apartments in prestigious districts - Naujamiestis, Antakalnis, and Žvėrynas (0.5%). Over the past 12 months, the growth in apartment prices in Vilnius was positive and equaled 1.1% with the average price of 1,204 EUR/sqm.
In March 2012, apartment prices in Riga have increased by 0.5% and raised average price to 975 EUR/sqm. Request for apartments in new projects exceeds supply in suburbs and apartment prices slightly increased in this segment. During the past 12 month the average apartment price has increased by 4.0%. From the highest price level which was reached in May 2007, until March this year, the prices for apartments in Riga decreased by 58.1%. (Oberhaus)
Prime Central London: property shrugs off stamp duty fears as prices rise 1.1%
Prime Central London prices rose a further 1.1% in April. Number of new £2m+ applicants in April was 13% higher than in March, signaling prospective buyers were not deterred by the stamp duty rise. Sales subject to contract in the three months to April were up 50% on the same period last year. French web searches for Prime Central London property spiked in February following election candidate Francois Hollande's proposal for a new wealth tax. (Knight Frank)
Social media