Swedish real estate sector is crying for help as the crisis in the areas just continue to strengthen
Wednesday, 24 July 2013
The Swedish real estate sectors which supposed to be the cash cow now
has seen the design and construction of single-family houses falling to
a very low level. This means that it is hard to get a normal simple
accommodation for young professionals. The sector is how crying out for
help.
Construction has fallen sharply in recent years and its is not known
precisely why. Now the real estate sector in Sweden is seeking help to
build stock in order to meet demand.
“New construction of single-family homes has dropped by almost 70
percent since 2006. There is an urgent need by many single-family
companies,” said David Johnson, CEO of TMF (Wood and Furniture
Companies’ trade association) reports Swedish news agency TT.
According to David Johnson, the reasons for the decline are many, but
there have been a number of decisions that have made it more expensive
to build new homes.
He mentions the technical rules on safety in windows, measures to
reduce energy consumption in buildings and changes in the Planning and
Building Act. In addition, the cost of building permits has also
increased.
Overall, the average costs of each house with has gone up by Skr350
000, according to David Johnson to the news agency, although
mortgage cap has made it difficult for single-family homes to be built.
“It is mostly first-time buyers who have difficulty entering the
housing market. We would prefer a repayment requirement from banks
instead.”
TMF calls for a review of the rules put in place to avoid the housing market collapse.
Latest statistics from Statistics Sweden show that the number of new
single-family homes in the first quarter of 2013 decreased by 27
percent compared with the same period last year.
by Scancomark.com
