Juho KeskinenAn economist at the Finnish Mortgage Association (Hypo) said that market activity remained surprisingly strong despite Russia’s war of aggression in Ukraine.
– The mood has calmed down and the high activity observed during the coronavirus crisis is clearly behind us. But sales are still higher than it was three years before the pandemic, he said comments.
Of the large cities, prices rose the most in Tampere, Turku and Espoo, where the prices of old dwellings rose by 5.4, 5.0 and 4.7 per cent. In the Greater Helsinki area, prices rose by only 1.9 per cent, while prices in Helsinki rose considerably less than the national average – 1.6 per cent – and fell in Vantaa by 0.6 per cent.
“It seems that real estate investors were more shocked by the war than those looking for new housing, which is reflected in price developments, especially in the Helsinki metropolitan area,” Keskinen said.
However, sales of old homes slowed. According to preliminary data, the sales volumes of real estate agents decreased by 15 per cent from the corresponding period a year ago.
Keskinen saw the development largely due to the caution of investors.
“Rising costs and interest rates are hurting investors’ returns as a large number of small homes started before the war will be completed this year. Those looking for their own home are still looking for a floor space that allows for teleworking, and the prices of larger apartments will continue to rise this year as well.
The situation is favorable for many who are looking for their first home.
– Those looking for a smaller first home have the opportunity to negotiate prices more enterprisingly, as the prices of studio apartments are also falling in growth centers this year, Keskinen said.
Aleksi Teivainen – HT