In terms of numbers, the most purchased mortgages were applied for in Helsinki, where the number of applications increased by 32 per cent in January-April compared with the previous year. The number of applications increased by 45 per cent in Espoo and 47 per cent in Vantaa. During the first months of the year, however, the largest changes in the demand for rented mortgages were in Kuopio and Joensuu, and demand increased by almost 80 per cent. Demand for such loan applications in Oulu increased by almost 70 percent.
“Strong demand for mortgages is explained on the one hand by the uncertainty caused by Covid-19 in the first half of 2020 and on the other by the general growth in demand that has continued for longer. Lower prices encourage investors to see opportunities outside In Joensuu, for example, a lot of new buildings have been built for several years now, and most of them have been small apartments suitable for investors. Satu Nurmi, Mortgage Manager, OP.
About 37 percent of mortgage applications to be purchased were women, compared to 32 percent five years ago. The proportion of female applicants has increased, especially in the last two years. The median age of mortgage applicants fell to 42 in April, from 45 years five years ago.
During the first months of the year, the average amount of a mortgage leased for purchase was approximately EUR 105,000. Loan volumes increased the most in Kuopio, Helsinki and Tampere. On average, the largest mortgages to be purchased were applied for in Helsinki (EUR 182,000), Espoo (EUR 148,000) and Vantaa (EUR 119,000).
The price development of one-room apartments continued – the rise in rents is leveling off
The popularity of the apartments to be bought is also reflected in the one-room apartments favored by investors. According to the Finnish Real Estate Agencies, the prices per square meter of one-room apartments in old buildings rose by 4.5 per cent nationwide in January-April compared with a year earlier.
Prices per square meter of one-room apartments rose by more than 7.9 percent in new buildings. In growth centers, the price of one-room apartments in old buildings rose the most in Espoo and rose by 14.5 per cent per square meter. Prices per square meter rose by 12.7 per cent in Turku and 8.5 per cent in Tampere.
“Prices per square meter in growth centers are at their own levels. The average price of old one-room apartments has already exceeded 7,500 euros in Helsinki, and Espoo has exceeded 5,000 euros in this respect, while Vantaa, Turku and Tampere have exceeded 4,000 euros, ”says Lasse Palovaara, OP Home Director.
However, the upward trend in rental levels that has been going on for several years is showing signs of weakening in all growth centers. According to Statistics Finland, growth in fixed rents for one room slowed down by 0.5 percentage points in January to March, by 0.7 percentage points in Espoo and Kauniainen and by 0.6 percentage points in Vantaa. Of the other growth centers, the growth rate of one-room fixed rents decreased by 1.1 percentage points in Kuopio and by 0.5 percentage points in Turku and Joensuu. The rental levels of one-room apartments in Jyväskylä even decreased slightly compared to the January-March 2020 period.
Source: OP Financial Group
Source: The Nordic Page