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“We see that the corona pandemic has led to increased interest in larger condos. We see this in more sales, higher price increases and more visits to our ads. More people want to live bigger when they spend more time at home, “says Erik Holmberg, an analyst at Hemnet.
This has contributed to a trend break in the housing market. Previously, they sold faster than the larger apartments, but the range of larger condos is now faster to sell, according to the statistics Nyhetsbyrån Direkt has read.
Measured as a 12-month moving average, it would now take 2.6 months to sell all on Hemnet and 2.4 months to sell all condos with three bedrooms or more. Before the price drop in the fall of 2017, the unit turnover rate was about half a month faster than that of the larger condos.
“The turnover rate is what stands out the most. During the turbulence of 2017, it slowed down as supply grew relative to sales volumes. For larger apartments, the turnover rate has increased since then, but this has not happened to the same extent in apartments. It’s probably related to the amortization requirements and credit constraints that affect those new to the housing market the most, ”says Erik Holmberg.
Since then, development has accelerated as a result of the corona pandemic, which has increased interest in living larger and financially hit those who buy smaller apartments more heavily.
“Those who are new to the housing market are also new to the job market and have generally taken a beating during the crown crisis. It reduces the purchasing power of that group, ”says Erik Holmberg.
The increased interest in the larger apartments is also seen in a clearly stronger price increase than in the smaller apartments. In the last three-month period, August-October, prices for condos with three bedrooms or more have increased by 11.2 percent at an annual rate, while the corresponding price increase for those with one is 6 , 6 percent.
“It’s mostly the bigger apartments that are driving the price increases we’ve seen for condos,” says Erik Holmberg.
With respect to the largest number of condo transactions, sales of apartments with three or more bedrooms have increased by 12.2% compared to 6.5% for one.
The pattern is clearest in Stockholm city center, where prices are highest. There, sales of larger apartments have risen by as much as 28.9 percent at an annual rate for the past three months, compared with 13.4 percent for apartments. The price increase is also higher for condos with three bedrooms or more, which now cost on average more than SEK 100,000 per square meter for the first time.
Image: Condo turnover rate Sweden
