Challenges Persist in Selling Small Apartments in Sweden
A slowdown in Sweden's small apartment market presents both challenges for sellers and opportunities for buyers.
Key Points
- • Selling small apartments in Sweden is increasingly challenging, requiring more viewings to secure a sale.
- • Buyers now have a larger selection of available properties, making it a favorable time to purchase.
- • The financial health of housing associations is a crucial factor for buyers.
- • Upcoming mortgage regulations and potential interest rate cuts may improve market conditions.
The Swedish real estate market for small apartments is currently experiencing significant challenges, leading to a slowdown in sales. Marie Bertilsson, a real estate agent with Svensk Fastighetsförmedling, reports extended selling times for smaller units, stating that whereas apartments used to sell after one viewing, it now takes an average of four to five viewings before securing a sale. Recent interest was noted at a viewing for a 40 square meter apartment in Årsta, priced at 1,995,000 kronor; however, Bertilsson emphasizes that buyers are increasingly cautious and attentive to factors such as the economic health of housing associations, which play a critical role in their decision-making process.
Claudia Wörmann, a housing economist, highlights the current market conditions as a buying opportunity, advising potential buyers to take their time and not rush decisions. SBAB's latest report identifies a surplus of available small apartments, such as studios and one-bedrooms, making it a favorable time for buyers to negotiate prices, sometimes even below the listed rates. Looking ahead, impending changes to mortgage regulations—including amendments to amortization and increased loan ceilings—are anticipated to improve market conditions for future buyers. Additionally, interest rate cuts by the Riksbank could further enhance buying prospects.