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The Influence of Norway on the Swedish property market

Sunday, 30 December 2012
With better paying jobs in Norway but a high cost of living there, more Swedes had been committing to the high paying jobs in Norway, especially those living around the border region of Värmland. They did so while continue to live in the low cost Sweden. This has attracted more Norwegians to do the same - move to the cheaper lower cost Sweden while keeping their jobs there. With their loaded pockets, they pay any price for houses in Sweden as such driving up the house prices in Sweden.

A research from the University Of Karlstad, Sweden, has added an academic dimension into this phenomenon which has already been reported several times in the past months and years.
swedish-housing

"The first thing that I was surprised about was that the cross-border commuting involved a relatively large proportion of Norwegians who have moved to Sweden and commute back home to Norway again. Rather than Swedes living on the Swedish side and commute to Norway to work. It was a surprise," said Hans-Olof Gottfridsson, Lecturer in Human Geography at the University of Karlstad, speaking to radio Sweden.

One problem with this cross boarder movement has been that the Swedes have had a poor impression about their Norwegian customers who want to buy cheap relative to the Swedes who see owning a house in Sweden as a far-fetched dream. The proximity to the border has led to a revival of local shopping towns such as Eda and Arjang with many new jobs in the Norwegian-owned shopping centres.

"Locals blame the Norwegians for the higher house prices and this creates conflict," says Eva Olsson, a lecturer in sociology at the University of Karlstad also to radio Sweden.
She believes that it is related to the reversal of roles for the advantage of the of Norwegians over the Swedes.
"We in Sweden are those who have been big and cocky, and have had plenty of money. Now it's the opposite."

The level of house prices in border municipalities have been raised properly, while many young Swedes through jobs in Norway, have been able to acquire houses and cars much earlier in life than others. Many Norwegians also buy attractive cottage in Värmland. The researchers see the risks in the one-sided reliance on the strong Norwegian economy in border municipalities.

"There is a risk that people'll become too dependent on Norwegian investments and the Norwegian border trade. In the long run, it is not good to be so dependent on a single phenomenon," says Eva Olsson.

The researchers also show that people's views on boarder opportunities are not as mythical as it has been made to beleive.

"There are many images or myths about this commuting across the border. For example, that one could go over to Norway to earn money and it would be a kind of dash for gold. Instead, it is an everyday part of life, to commute across the border, when one live in these areas," says Hans-Olof Gottfridsson.
By Scancomark.com Team

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