Supply remains tight: Swiss house prices can’t stop rising interest rates

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According to Raiffeisen’s transaction price index released on Wednesday, the 1.3 percent quarter-on-quarter increase in detached house prices in the second quarter was slightly higher than condominium prices (+1.2%). Compared to the second quarter of 2022, single-family homes are 6.1 percent more expensive today and condominiums are 5.1 percent more expensive than a year ago. “In the power struggle between weak supply and rising financing costs due to interest rates, shortages of supply are currently gaining the upper hand,” Raiffeisen Switzerland chief economist Fredy Hasenmaile said in a statement.

According to the announcement, single-family homes in central Switzerland (+18.8%) and eastern Switzerland (+9.8%) recorded the highest price increases compared to the previous year. On the other hand, prices rose less in Bern (+3.4%) and Northwest Switzerland (+3.3%). When it comes to condominiums, prices rose the most in Central Switzerland (+11.3%). The Zurich region recorded the lowest price increases (+1.4%) compared to the previous year.

Especially in urban communities

It is said that housing prices in urban settlements increased by 7.3 percent in a year compared to other settlements. In the condominium segment, tourist communities recorded the strongest price increases (+7.9%). On the other hand, condominium prices in central municipalities (+4.1%) increased the least.

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The Raiffeisen transaction price index is published quarterly at the beginning of a new quarter. Measures the price evolution of owner-occupied residential properties in Switzerland, based on ownership change data from Raiffeisen and Swiss Real Estate Datapool (SRED). (pbe/SDA)

Source :Blick

Tim

I’m Tim David and I work as an author for 24 Instant News, covering the Market section. With a Bachelor’s Degree in Journalism, my mission is to provide accurate, timely and insightful news coverage that helps our readers stay informed about the latest trends in the market. My writing style is focused on making complex economic topics easy to understand for everyone.