Single-family homes more expensive in September, condominiums cheaper
Published: Thursday, Oct 3rd 2024, 07:40
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Prices for owner-occupied homes moved in opposite directions in September. While the highest increase in a long time was recorded for single-family homes, there was a slight decline for condominiums.
Specifically, single-family homes were advertised at 1.5 percent higher values in September than in August, according to the latest "Swiss Real Estate Offer Index" published on Thursday by Immoscout24 and real estate consultancy IAZI. This represents a price increase of 1.7 percent over the course of the year.
In contrast, asking prices in the condominium segment fell slightly by 0.3% last month. In annual terms, however, this still results in an increase of 2.9%.
"In the last twelve months, providers of single-family homes turned the price screw in both directions. Increases and decreases in the range of one percent were not uncommon," says the commentary accompanying the price calculation. September has now seen the highest monthly increase in asking prices since December 2022.
As interest rates have been falling again since March of this year, financing conditions have once again improved significantly. With supply remaining tight, sellers are apparently assuming that this will have a positive impact on demand for single-family homes, despite the high price level. This is likely to be an important argument for sellers to increase prices again.
Rents more expensive almost everywhere
Meanwhile, asking rents became more expensive again in the month under review. According to the index, following a noticeable increase in August, they rose by a further 0.7% in September. Over the last twelve months, this represents an increase of 3.2%.
The increase was particularly strong in the Central Switzerland region last month at +2.5%, according to the report. The major regions of Zurich (+1.6%), Northwestern Switzerland (+1.0%), Eastern Switzerland and Ticino (+0.9% each) also recorded above-average increases. There was no change in the Espace Mittelland region, while prices in the Lake Geneva region even fell by 0.7%.
Meanwhile, there is good news for tenants in an existing contractual relationship. Due to the SNB's third key interest rate cut in a row last month and the prospect of further cuts, a fall in the reference rental rate in spring 2025 is now a possibility, according to the report.
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