Hosting has been scarce for many years in Switzerland. As mortgage broker Moneypark announced on Wednesday, the outbreak of the Corona crisis in 2020 has exacerbated this, leading to a drastic drop in home supply. As a result, prices rose sharply.
In the third quarter of 2022, supply recovered for the first time in almost three years. And this trend is likely to continue in the coming quarters. This means that while supply is likely to continue to increase, it will remain well below pre-pandemic levels.
Therefore, the mortgage broker does not expect prices to fall overall, even if demand is likely to continue to decline due to higher living and financing costs and record high property prices. As a result, housing supply remains scarce and steady population growth supports demand.
The supply of advertised detached homes increased by nearly 10 percent (+1,700 properties) compared to the second quarter. This means that the bid is slightly above the mid-2021 level, writes Moneypark. Asking prices also rose in the third quarter, but were also significantly lower, plus around 1 percent from previous quarters.
Real estate experts explain the increase in the single-family home supply, with, among other things, the emergence of real estate inherited from retired property owners and no personal needs. But rising financing and energy costs have also reduced the attractiveness of home ownership. There is also fear of a possible collapse in the real estate market.
Moneypark writes that a similar picture emerges for condominiums. Supply increased by about 6 percent (+1,750 objects) compared to the previous quarter. This means that the bid is again slightly above the level at the end of 2021. Bid prices in the reporting quarter also increased by about 1 percent, which was significantly lower than in previous quarters.
The supply of condominiums in Switzerland is generally higher than for single-family homes. According to Moneypark, the rate is around 60-40 percent and is shifting towards even more apartments due to more intense construction, among other things.
(SDA)