Prices for residential property continue to rise in the second quarter
Published: Friday, Jul 5th 2024, 12:40
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Home ownership remains in demand in Switzerland. Prices also rose in the second quarter of 2024 compared to the same quarter of the previous year. This is according to the Raiffeisen Transaction Price Index calculated by Raiffeisen Switzerland.
Specifically, prices for single-family homes rose by 1.3% from April to June compared to the previous quarter, as Raiffeisen reported on Friday. Condominiums also became slightly more expensive with an increase of 0.5 percent. Compared to the same quarter last year, single-family homes now cost 3.8 percent more and condominiums 2.4 percent more.
This means that the price trend on the owner-occupied housing market is continuing to weaken as interest rates fall from their peak. Raiffeisen chief economist Fredy Hasenmaile is quoted in the press release as saying that due to the still higher interest rate level compared to the low interest rate phase, a recovery in price momentum is not to be expected any time soon
Single-family homes slightly cheaper in western Switzerland
According to the press release, single-family homes in southern Switzerland (+11.1%) and eastern Switzerland (+9.9%) recorded the strongest price increases compared to the previous year. In contrast, house prices fell slightly in western Switzerland (-1.8%) and Zurich (-1.5%).
Prices for condominiums in Zurich (+6.3%) and north-western Switzerland (+2.9%) rose the most year-on-year. In southern Switzerland (+1.8%) and on Lake Geneva (+1.2%), on the other hand, prices for condominiums rose only moderately compared to the previous year.
Prices for condominiums in the centers fall slightly
Within a year, house prices rose most strongly in the central municipalities (+5.1%). By contrast, prices in rural municipalities fell slightly (-0.7%). In the condominium segment, urban municipalities recorded the strongest price increases (+3.8%). In the centers, however, condominiums (-1.1%) are now slightly cheaper than a year ago.
The Raiffeisen Transaction Price Index is published quarterly at the beginning of each new quarter. It measures the price development of owner-occupied residential property in Switzerland based on change of ownership data from Raiffeisen and the Swiss Real Estate Datapool (SRED).
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