Home prices only rose slightly by one percent in the last three months. Photo: Hasse Holmberg / TT / Scanpix
11 percent jump for condos

Condo prices climb while home prices are steady

Prices for condominiums have jumped 11 percent across Sweden in the last three months, while home prices only rose slightly by one percent.

Swedish Radio News reports that in October alone the prices of condominiums increased by 4 percent, according to the latest real estate figures.

Ingrid Eiken, CEO of Sweden's real estate agent association, said the figures are affected by what she called the "Stockholm effect."

In the capital, apartment prices are much higher than the rest of the country and a housing crunch there has made competition fierce. When more apartments are sold there it distorts the national statistics as a whole.

"When the percentage of sold apartments in Stockholm increases, it is significantly visible in the statistics," Eiken told Swedish Radio. "There are not many people around the country who would recognize a gain of 11 percent even while prices outside of Stockholm are also increasing rapidly."

In Sweden, buyers purchase a share of a cooperative housing association (bostadsrättsföreningen) which gives them the right to live in a particular dwelling, rather than purchasing an actual apartment.

Our journalism is based on credibility and impartiality. Swedish Radio is independent and not affiliated to any political, religious, financial, public or private interests.
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