Houses in Helsinki. LEHTIKUVA
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November 2023 marked a significant turnaround in Finland’s housing market, registering the highest number of transactions for the year. The Finnish Real Estate Federation’s Central Association (KVKL) reports that changes in the transfer tax and the European Central Bank’s decision to maintain interest rates have revitalized the housing market.
Key Insights from the November 2023 Housing Market Report:
- Record Transactions: A total of 4,524 old home sales were reported, marking an 11.5% increase from the previous year. New home sales, however, saw a 55.4% decrease, with only 174 transactions.
- Regional Differences: The most significant increases in transaction volumes were observed in large cities. Tampere led the surge with a 44.3% increase, followed by Turku (+27.0%), Helsinki (+25.7%), and Kuopio (+25.0%).
- Price Trends: Used apartment prices in multi-story buildings rose by an average of 0.5% in the capital region and 5.2% in other large cities compared to October. In Oulu, the increase was as high as 10.9%.
- Sales Duration: The average sales time for used apartments in multi-story buildings in the capital region remained unchanged at 92 days. In contrast, the rest of Finland saw a decrease to 110 days. However, the sales duration for detached houses increased both in the capital region (130 days) and elsewhere in Finland (134 days).
- Government’s Policy Impact: The Finnish Government’s recent changes to the transfer tax and the ECB’s decision not to raise key interest rates have injected new life into the market, particularly encouraging first-time homebuyers.
November 2023 marked a positive shift in Finland’s housing market, with a notable increase in transaction volumes, especially in used apartments and detached houses. This surge is attributed partly to the Finnish Government’s policy changes and stable interest rates, which have bolstered consumer confidence and facilitated more transactions. With a strong outlook for the future, the Finnish housing market is becoming an increasingly attractive option for both buyers and sellers.
HT
- Previous Article Nationwide strikes in Finland disrupt train services and energy sector
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Source: www.helsinkitimes.fi
