ImmoScout24 reports record price for condominiums
Prices for condominiums and single-family houses continued to rise significantly in August. In contrast, apartment rents have fallen. This is evident from the new Swiss Real Estate Offer Index.
The prices for condominiums in Switzerland rose by 1.8 percent in August compared to the previous month. The prices for single-family houses have risen by only 0.1 percent. This is shown by the current Swiss Real Estate Offer Index , which is collected by ImmoScout24 in cooperation with the real estate consultancy IAZI AG.
The market for condominiums is becoming more and more expensive , according to the press release. At the end of August, 7916 francs were charged per square meter, 1.8 percent more than a month earlier. A typical apartment with 100 square meters is advertised for an average of around 790,000 francs in Switzerland. That is a new record.
The prices for single-family houses rose by only 0.1 percent in August, but according to ImmoScout24 they are “at a dizzying height”. The square meter price is 7048 francs. For a typical Swiss single-family home with around 160 square meters of living space, the average asking price is over 1.1 million francs. The prices can be significantly higher in better locations.
The supply is scarce, the market has dried up. Martin Waeber, COO of Scout24 is quoted as saying that sellers were waiting in view of the rising prices. “Only a strong increase in construction activity or a decline in demand, for example due to rising mortgage interest rates, could reduce the price pressure on the residential property market,” Waeber continued. However, neither is currently foreseeable.
According to the index, asking prices for rental apartments fell by an average of 0.5 percent in August, with significant regional differences.