The Finnish Property Prices Report for the second quarter of 2023, released by Statistics Finland, reveals a notable decrease in the prices of older detached houses. During this period, the prices of these houses experienced a 9.2% decrease compared to the previous year. However, they saw a marginal increase of 0.6% compared to the previous quarter.
Key Highlights of the Report:
- Price Decline: The report indicates that the prices of older detached houses witnessed a significant decline of 9.2% when compared to the same period in the previous year. This downward trend was especially prominent in municipalities with populations ranging from 60,000 to 100,000 residents and in the eastern part of the country (Itä-Suomi). Larger cities experienced a less substantial drop in prices.
- Land Prices: The prices of plots for detached houses decreased by 4.8% across the country when compared to the previous year.
- Transaction Volume: The number of transactions for older detached houses decreased by approximately 24% in the period of April to June 2023, when compared to the same period in 2022. Similarly, transactions for plots intended for detached houses decreased by around 34%.
- Regional Variations: In terms of location, the price decline was most notable in municipalities with populations ranging from 60,000 to 100,000 residents, followed by those with populations exceeding 100,000 residents, and those with populations ranging from 20,000 to 59,999 residents. The smallest decline was observed in municipalities with populations less than 20,000 residents.
- New Detached Houses: On a positive note, the prices of new detached houses increased by 4.5% compared to the previous year. However, there was a slight decline of 0.1% in the prices of new detached houses when compared to the previous quarter.
The report highlights the fluctuating dynamics of the Finnish property market, with older detached house prices experiencing a substantial decline, particularly in certain municipality size categories. It also sheds light on trends in land prices and the transaction volume, providing valuable insights into the real estate landscape in Finland.