Further rise in residential property prices in German-speaking Switzerland and Ticino
Published: Monday, Jan 29th 2024, 08:10
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Buyers of residential property also had to dig deeper into their pockets last year: Average prices continued to rise in almost all regions of German-speaking Switzerland and in Ticino.
However, the pace of growth weakened significantly as a result of repeated interest rate hikes, according to an analysis of residential property prices by the Swiss Real Estate Institute on behalf of the real estate portal Newhome, which was published on Monday.
Prices for single-family homes climbed by an average of 3.6 percent, which was significantly higher than the general inflation rate of 2.1 percent. In contrast, condominiums did not become much more expensive (+0.4 percent).
The analysis is not based on prices in the advertisements, but on the actual sales prices from the Swiss Real Estate Data Pool (SRED). This comprises homes financed by Credit Suisse, UBS and Zürcher Kantonalbank and covers around 40 percent of all transactions in Switzerland. In 2023, 6631 owner-occupied homes changed hands in the six regions surveyed.
Most expensive houses in Central Switzerland
Of the six regions surveyed, a detached house in Central Switzerland is the most expensive. On average, CHF 1.64 million had to be paid for it last year. This is 5.1 percent more than in the previous year 2022. The Zurich region ranked second with an average price of CHF 1.54 million (+1.3 percent).
However, the biggest price increases were in Eastern Switzerland (+8.2%) and Ticino (+6.7%), ahead of Northwestern Switzerland (+3.5%). The sharp increases in Eastern Switzerland and Ticino can be explained by a catch-up effect and the fact that it is still easier to finance, as prices in both regions are lower than elsewhere.
Espace Mittelland, i.e. the cantons of Bern and Solothurn, was the only region to see falling prices (-2.1 percent). Single-family homes were also the cheapest there, with an average selling price of CHF 920,000.
Condominiums in Zurich have become more expensive
The Zurich region has overtaken Central Switzerland at the top of the list for owner-occupied apartments. While apartment prices in Zurich rose by an average of 1.8 percent to CHF 1.14 million, they fell by 3.6 percent to CHF 1.08 million in Central Switzerland. In the previous year, both regions had been tied at the top.
All other regions became more expensive with the exception of Espace Mittelland, where average prices fell by 8.8 percent. This means that a condominium in the cantons of Bern and Solothurn now only costs CHF 620,000. The Espace Mittelland has replaced Ticino as the cheapest region (CHF 680,000).
The differences between the municipalities are huge: among the five most expensive municipalities for single-family homes, the municipality of Erlenbach ZH leads by a wide margin with an average property price of 5.16 million. A detached house there costs an average of 1.31 million more than in the second most expensive municipality of Hünenberg (3.85 million).
©Keystone/SDA
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