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According to the information obtained, the main reason for this was the slowdown in housing loan growth. In addition, a slight decrease in the number of applications for financing purchase-lease projects (purchase-lease) also caused a decrease.
According to the statement, at the current index level, the domestic market remains clearly overvalued compared to its historical development. Values above 2 in the index indicate bubble risk, values between 1 and 2 indicate overvaluation, and values between -1 and 1 indicate fair valuation.
It is interpreted that housing prices continue to show resistance against increasing financing costs and the index is still relatively high. Overall, low new construction activity and accelerating immigration make a price correction unlikely in the near future.
From a regional perspective, the market is particularly concentrated in Lake Zurich, parts of Grisons, St. Gallen is overheated in the Rhine Valley and the Lausanne region.
The UBS Swiss Property Bubble Index consists of six standardized sub-indices. These are housing prices relative to annual rents, consumer prices, household income as well as mortgage volume relative to household income, construction activity relative to gross domestic product, and the demand for loan applications for investment properties. (SDA)
Source :Blick
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.
