Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
Compared to the risk I'm prepared assume:

In the last 10 years, the price of tenant-owner apartments nationwide has risen by 153 percent [Me: eek!,] while small houses have grown in value by a comparatively modest 72 percent.  [Me: "modest" 72%????]

In 2000, buyers had to pay 8,314 kronor per square metre ($115 per square foot) for a flat in Sweden. But by the end of 2010, Swedish apartment prices had risen to 21,057 kronor per square metre ($293 per square foot).


Looking at the price rise and comparing to the average Swedish salary I conclude Sweden (and Finland) is experiencing a real estate bubble.  

She believed in nothing; only her skepticism kept her from being an atheist. -- Jean-Paul Sartre

by ATinNM on Sat Sep 17th, 2011 at 10:56:28 AM EST
[ Parent ]
Oh, you mean the bubble. Yes, it is still there. I thought you meant something more structural.

Note that average price is skewed towards units that are hold for a short time and also more costly units. From what I have seen the price rise has been moderate outside the mayor cities. Outside the mayor cities is also where the renting market with the controlled rents works best as there is no housing shortage and the town council acts as landlord of last resort.

To pick from the adds:
Alvägen 4 - 5 room house in Vännäs kommun/Vännäs | Hemnet

695 000 kr

Vännäs is a nice little town outside Umeå.

Södra Vägen 8 - 5 room house in Stockholm | Hemnet

4 600 000 kr

Ok, it is also bigger, but there is also a lot of bubble going on.

European Tribune - Housing bubble in Sweden going pop?

After some debate an interesting line-up formed. On one hand the central bank and the real estate salesmen denied that a bubble could be predicted at all. The central bank because bubbles can be known in their limited world and the salesmen because everybody knows that prices go up-up-up. On the other side was Bostadskreditnämnden, the treasury and the largest banks.

Still has not popped.

Sweden's finest (and perhaps only) collaborative, leftist e-newspaper Synapze.se

by A swedish kind of death on Sat Sep 17th, 2011 at 02:14:05 PM EST
[ Parent ]


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