House prices down slightly by 0.07% y-o-y in Q2 2019
House prices in Sweden have stalled for 5 quarters, after surging by 44% over the past 6 years. The nationwide house price index fell by a minuscule 0.07% during the year to Q2 2019. However maybe this period of weakness is over? Quarter-on-quarter, house prices increased slightly by 0.07% during the latest quarter.
Demand and supply falling. Homes sold in one- to two-dwelling buildings fell by 4% y-o-y to 24,095 units in the first half of 2019, after falling by 1.2% last year according to Statistics Sweden.
In H1 2019, dwelling starts in newly constructed one- to two-dwelling buildings fell by 29% y-o-y to about 4,369 units, after falling by 18.3% in 2018. Likewise, dwelling completions also fell 31% to 4,598 units over the same period.
Rents, rental yields: yields figures are hard to get.
Stockholm apartment costs are around €6,991 per sq. m.
|Sweden: typical city centre apartment buying price, monthly rent (120 sq. m)|
|Buying price||Rate per month||Yield|
Recent news: The Swedish economy grew by about 2.4% last year, after annual growth rates of 2.1% in 2017, 2.7% in 2016, 4.5% in 2015 and 2.6% in 2014.
In August 2019, the National Institute of Economic Research revised downwards its 2019 growth projections for Sweden to just 1.5%, from an earlier forecast of 1.9%, citing higher uncertainty amid escalation of trade wars, Brexit deal and conflicts in the Middle East.