Market News / Real Estate & Mortgages
Sales of newly built homes in Sweden are sluggish. In Stockholm, the prices of new condominiums in one of the most attractive locations have fallen by half a million Swedish Krona. In Gothenburg and Malmö sellers attract buyers with free maintenance payment for a year.
According to a list produced by the property website, booli.se compiled for the Swedish daily, Dagens Nyeheter, prices of a number of new construction projects have been reduced recently. It is newly built residential building in both the Stockholm, Malmo and Gothenburg region. The discounts concerns ranging from a few percent downward adjustment of the operation to reductions of several hundred of thousand.
It is really so hard to sell a house right now, something that has spread from the wake of the 2008-2009 financial crisis, when many of the major developers were forced to lower the price from 20 to 25 percent of their new production. But many brokers and builders reports on sluggish sales, particularly in locations that are not located in the most sought after areas - but there are signs that buyers are hesitating.
In Hammarby in Stockholm there is currently being built a block of flats in one of the very best locations, at Henriksdalshamnen and with splendid views over Lake Hammarby and Södermalm. Here, the developer, Abacus, is forced to reduce the price on all fours with half a million Swedish Krona to get them sold. The prices of these condominiums are now between about Skr4 and Skr7.5 million, report the Swedish daily, Dagens Nyehter.
More examples of price discounts on new apartments in Stockholm are in Frösunda park in Solna where developer, JM reduced price by about 5 percent in all more than 100 apartments - both sold and unsold - in the new construction project in Rosenlund last spring. The JM project manager, Michael Berg says it has paid off.
In both Gothenburg and Skåne there are also other types approached to lures in buyers in a very tight market. In Örgryte, Gothenburg, right now, apartments sold by Länsförsäkringar Property, are being discounted and other things such as one-year free rent is also thrown in. Even in the Malmö region several developers are throwing in offers, including JM and CA Real Estate in Lomma, on at least an annual free rentals in order to boost business.
In Sweden, people who buy apartment still pay fees or rents as it is know here which is used for maintenance in areas such as heating, cleaning, and security. These rents vary depending on the area and the quality of the property.
Despite all this these, many of the major construction companies are cautiously optimistic about the fall months. JM has for example launched an large suburban projects that have been on ice for years, Kista skyscraper towers - and there rental rates are already high, according to Anna Dahlman, press officer at JM.
"The market has been cautious, especially last fall, but there has been a marked improvement in March - April says Zdravko Markovski, business unit manager at JM Residential Stockholm to Dagens Nyheter.
Swedish houses are still being described, as over valued and that house prices are still too high in Sweden. This has been one of the reasons why the central bank decided recently to reduce the rapo rates so that it eases the huge burden on mortgage payers.
By Scancomark. com team
Prices reduction for newly constructed houses in Sweden
Tuesday, 18 September 2012Sales of newly built homes in Sweden are sluggish. In Stockholm, the prices of new condominiums in one of the most attractive locations have fallen by half a million Swedish Krona. In Gothenburg and Malmö sellers attract buyers with free maintenance payment for a year.
According to a list produced by the property website, booli.se compiled for the Swedish daily, Dagens Nyeheter, prices of a number of new construction projects have been reduced recently. It is newly built residential building in both the Stockholm, Malmo and Gothenburg region. The discounts concerns ranging from a few percent downward adjustment of the operation to reductions of several hundred of thousand.
It is really so hard to sell a house right now, something that has spread from the wake of the 2008-2009 financial crisis, when many of the major developers were forced to lower the price from 20 to 25 percent of their new production. But many brokers and builders reports on sluggish sales, particularly in locations that are not located in the most sought after areas - but there are signs that buyers are hesitating.
In Hammarby in Stockholm there is currently being built a block of flats in one of the very best locations, at Henriksdalshamnen and with splendid views over Lake Hammarby and Södermalm. Here, the developer, Abacus, is forced to reduce the price on all fours with half a million Swedish Krona to get them sold. The prices of these condominiums are now between about Skr4 and Skr7.5 million, report the Swedish daily, Dagens Nyehter.
More examples of price discounts on new apartments in Stockholm are in Frösunda park in Solna where developer, JM reduced price by about 5 percent in all more than 100 apartments - both sold and unsold - in the new construction project in Rosenlund last spring. The JM project manager, Michael Berg says it has paid off.
In both Gothenburg and Skåne there are also other types approached to lures in buyers in a very tight market. In Örgryte, Gothenburg, right now, apartments sold by Länsförsäkringar Property, are being discounted and other things such as one-year free rent is also thrown in. Even in the Malmö region several developers are throwing in offers, including JM and CA Real Estate in Lomma, on at least an annual free rentals in order to boost business.
In Sweden, people who buy apartment still pay fees or rents as it is know here which is used for maintenance in areas such as heating, cleaning, and security. These rents vary depending on the area and the quality of the property.
Despite all this these, many of the major construction companies are cautiously optimistic about the fall months. JM has for example launched an large suburban projects that have been on ice for years, Kista skyscraper towers - and there rental rates are already high, according to Anna Dahlman, press officer at JM.
"The market has been cautious, especially last fall, but there has been a marked improvement in March - April says Zdravko Markovski, business unit manager at JM Residential Stockholm to Dagens Nyheter.
Swedish houses are still being described, as over valued and that house prices are still too high in Sweden. This has been one of the reasons why the central bank decided recently to reduce the rapo rates so that it eases the huge burden on mortgage payers.
By Scancomark. com team
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