Capital region drives national housing market rebound in March

By admin On Apr 11, 2025

LEHTIKUVA

Used home sales in Finland rose by 23.5% in March compared to the same period last year, with the capital region regaining its role as the engine of national housing activity. According to figures from the Central Federation of Finnish Real Estate Agencies (KVKL), the overall housing transaction volume was 4,951 units, up 21.7% year-on-year.

The capital region alone saw nearly 30% more used housing sales than in March 2024, and over 1,100 used apartments changed hands across Helsinki, Espoo and Vantaa.

“The early months of 2025 have seen housing transaction volumes grow by more than 20% every month. March was no exception,” said Tuomas Viljamaa, CEO of KVKL.

Despite the sales increase, price trends remain subdued. In large cities, the prices of used apartments have held steady since September 2023. In the capital region, price declines appear to have reached their lowest point only this year.

Used apartment prices in the capital region are now at levels last seen in 2017, and in other major cities at 2016 levels. The decline in apartment prices has reached 15–20% in the Helsinki region and around 10% elsewhere.

Average square metre prices for used apartments rose slightly by 0.3% in the capital region compared to February but declined by 0.1% in other large cities. In Tampere, prices rose by 4.5%, while in Turku and Oulu they dropped by 1.8% and 10.1% respectively.

Year-on-year, used apartment prices in the capital region were down 5.4%, while other cities saw a marginal 0.1% drop. Notably, Tampere recorded a 3.2% annual rise, contrasting with Turku’s 6.6% fall and Oulu’s 3.1% decline.

“Many listings remain on the market for extended periods, often due to unrealistic pricing. Sellers and buyers continue to struggle in finding common ground,” Viljamaa noted. “But where the pricing is right, transactions happen.”

In March, used apartment sales were highest in Helsinki (686 units), followed by Tampere (311) and Espoo (269). Across the capital region, used homes accounted for nearly 24% of all sales in Finland.

In Uusimaa, 1,611 used apartments were sold, followed by Pirkanmaa (564) and Southwest Finland (482). The biggest year-on-year increases were recorded in North Karelia (up 48.6%) and Kanta-Häme (46.4%).

Used terraced and semi-detached homes represented nearly 24% of all transactions, while detached house sales accounted for 28.5%.

While used housing sales continue to grow, the new housing sector remains stagnant. Just 169 new home sales were recorded in March, down 13.8% from the previous year and 72.1% below the five-year average.

“The gap between the prices of new and used homes remains significant, especially in large cities. This continues to hold back new housing sales,” Viljamaa said.

In Helsinki, 27 new apartments were sold, and in Espoo, 22. The five-year averages for both cities were far higher.

“Population growth is outpacing new construction in urban areas. The capital region alone grew by 22,000 people last year — the size of Sipoo. Demand will keep rising in these cities,” Viljamaa added.

Average selling times remain long, but some housing types saw faster movement in March. In the capital region, terraced houses sold 17 days faster than in February, and detached houses moved 14 days quicker.

Used apartments in the capital region took 121 days on average to sell
Terraced houses sold in 117 days (down from 134 in February)
Detached homes took 156 days (down from 170)
In Helsinki, one-bedroom flats sold fastest at 106 days

Viljamaa called for action to restore consumer confidence and boost demand. “The ECB is likely to continue cutting interest rates, possibly faster than expected. But confidence among households needs support.”

He urged the Finnish government to act in its upcoming growth package by easing mortgage regulations and expanding tax deductions for home renovations.

“Restoring optimism is key to supporting growth and employment,” he said.

Source: www.helsinkitimes.fi