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What has happened? Prices for old apartments in housing companies in Finland continued to decline in October 2023. According to the Bureau of Statistics, the annual price fall was 7.8% in the largest cities and 4.1% in other parts of the country, totaling 6.5% on average for the country. Compared to the previous month, prices across the country have decreased by 0.8%.
The regions. Oulu has recorded the most significant price drop, with older apartments losing an average of 11% of their value in the 12 months leading up to October 2023. Prices in Turku have fallen by 8.7% and the prices in the capital region have decreased by 7.8%.
Tampere proved to be the most resilient market, with prices falling by 5.0% compared to the previous year. Tampere was also the only major city to record a monthly increase in prices for older properties in housing companies, up 1.9%.
Prospects. Juhana Bratus, the chief economist at Suomen Yrittäjät, expects house prices in Finland to fall by more than 6% in 2023, the biggest year-on-year decline in more than 30 years. Compared to the price peak observed in 2022, housing prices have already fallen by about 10%.
Quote. “The start of next year will be difficult, but gradually low new residential production and especially the declining Euribor rates will lubricate sales chains across the country and elevate prices in growth centres,” he said.
Bratus is familiar with the workings of the real estate market as the former chief economist of the Finnish Mortgage Society (Hypo).
Source: Helsinki Times
