“Sales figures indicate that the housing market likely hit its lowest point earlier this year, and the current upward momentum could signal a sustained recovery. Nearly 1,000 more used homes were sold this October compared to the same period last year.”
In October, the Finnish housing market recorded 5,152 used property sales, a 22.7% increase from the previous year, alongside 174 new home sales. Prices also showed growth in key areas: average prices for used apartments in the capital region rose by 3.3% compared to September, with notable gains in Oulu (8.9%) and Turku (4.9%). Additionally, the time taken to sell apartments decreased, especially in the capital region, where sale times shortened by an average of 11 days, indicating a more dynamic market.
Factors Driving the Market Upswing
Interest rates have declined since July, bolstering buyer purchasing power, which has gradually translated into increased market activity. The reduction in property transfer tax last year also appears to be fueling interest, especially among first-time buyers and property investors.
Large urban centers, particularly Helsinki, Tampere, and Turku, have seen the highest sales growth. Used and new property transactions in Turku surged by nearly 40% compared to last year, while Helsinki saw a 31% increase, and Tampere reported a 27% boost in sales volume.
“Demand for smaller apartments in major cities has picked up, with more investors returning to the market,” said Viljamaa. “Rapid population growth in urban areas is driving demand, making it a potentially advantageous time for buyers.”
A Good Time to Buy?
Given the relatively low prices in relation to income levels, Viljamaa notes that now could be an opportune time for buyers. If Finland’s economy improves and wages increase, property values are likely to follow suit. Additionally, the anticipated stabilization of interest rates around 2-2.5% could make home-buying conditions particularly favorable.
The positive market shift in new home sales also points to a potential uptick in construction activity if demand continues.
Regional Sales Insights
Used apartment sales rose across all major Finnish cities in October compared to last year. The capital region reported 1,166 sales, up 21.7% from 2023. Helsinki led with 692 sales, a 27% increase. Turku recorded the highest year-on-year growth rate, with used apartment sales up by 32.4%.
The report shows a renewed market confidence, as both sales volumes and prices of used apartments climbed in October, reflecting a growing interest among buyers in Finland’s urban housing market.
HT
