The value of older one-bedroom flats is falling in price
Prices on the secondary housing market in Finland decreased in the second quarter of 2023. According to the statistics, the cost of apartments in the country fell by 7.3% year-on-year, while compared with the previous three months (the first quarter), the indicators rose by 0.3%. Prices for one-bedroom apartments dropped the most.
Overview by region
The fall in property values was most pronounced in the metropolitan markets, where the average fall was 8%. In Helsinki, the price of apartments fell by 10% and Espoo by 6.4%. In Turku, prices fell by more than 4% and in Vaantaa by 6%. The smallest price decrease was recorded in Oulu – by 2%. At the same time, the analysts note a slight price increase in the second quarter compared with the first quarter. The only exception is Turku.
On the capital market, one-room flats were the hardest hit. Their prices fell by 11%. Prices for flats with two or more rooms fell by around 9%.
The dynamics of the national market as a whole are as follows:
– the cost of a one-bedroom flat has fallen by more than 9%;
– two-room flats are 7.5% cheaper than in 2022;
– flats with more square metres have dropped in price by 7%;
– the price of an apartment in a terraced house has decreased by 5.5%.
Comparing changes with the first three months of 2023, the second quarter saw price increases in several regions:
– in Mikkeli, the increase was 8%;
– in Jyväskylä, the price of a flat rose by 7.7%;
– in Joensuu, the rise was 5.5%.
In some regions, prices decreased:
– in Kokkola, flats became almost 18% cheaper;
– in Lahti, the decrease was more than 12%;
– in Kouvola, the price fell by 11.4%.
Despite the fall in value, sales in the Finnish market have been relatively weak. According to statistics, the number of transactions involving the purchase of old apartments in the country has fallen by around 30%. The number of new-build purchases has fallen by 60% compared with the figures for 2022.
Situation in the new building market
Even with the decline in the secondary market, the cost of new dwellings in Finland rose by more than 3%. In Helsinki, house prices rose by almost 9%, while in the other regions, there was a slight decline of 0.2%.
As in the secondary housing sector, transactions involving new buildings continue to fall. Analysts note that in the second quarter, the indicator fell to the level of the dynamics of the 1990s.