Capital region housing market disappoints despite signs of stabilization elsewhere

The latest housing market data reveals a disappointing trend in Finland’s capital region, particularly in Helsinki, according to Senior Economist Veera Holappa of Pellervo Economic Research (PTT). While there are signs that the housing market may hav

By: helsinkitimes.fi

Aug 28 2024
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Capital region housing market

The latest housing market data reveals a disappointing trend in Finland’s capital region, particularly in Helsinki, according to Senior Economist Veera Holappa of Pellervo Economic Research (PTT). While there are signs that the housing market may have bottomed out nationally, the situation in the capital area remains concerning.

Preliminary figures from Statistics Finland show that the prices of old apartments across the country fell by 2.6% in July

compared to the previous year but remained stable compared to the previous month. In contrast, the capital region saw a sharper decline, with prices dropping by 3.3% year-on-year and 0.4% from June. In Helsinki, prices were down by 4.5% compared to last year.

"The capital region, and especially Helsinki, is a particular disappointment. Prices in Helsinki have declined for two consecutive months now, which has dashed any early hopes of a recovery. While it's not a crash, the news is clearly negative," Holappa noted.

The low levels of home-buying intentions continue to reflect consumer concerns over economic stability and the threat of unemployment. Although interest rates may ease the pressure, they have yet to revive the sluggish market.