Strong property market in Aargau shows high prices and low vacancy rates
Prices for residential property and asking rents in the canton of Aargau have risen by 4.6 and 4.7 per cent respectively year-on-year. This is shown by a current barometer from the Aargauische Kantonalbank. The background to this is population growth and faltering construction activity.
The latest property barometer from Aargauische Kantonalbank(AKB) attests to the “strong momentum” of the Aargau property market. The canton’s strong appeal as a place to live is reflected in “continued above-average increases in property values”, write the AKB experts in the barometer. Specifically, they noted a 4.6 per cent year-on-year increase in residential property prices.
Among the individual regions of Aargau, Aarau/Seetal stands out with a 5.1 per cent increase in house prices and Rheinfelden/Fricktal with a 6.1 per cent increase in the price of owner-occupied flats. According to the experts’ research, in the majority of the canton’s 230 municipalities, more than CHF 1 million must be paid for a detached single-family home with a neighbouring plot. Prices are even higher in the catchment markets of the surrounding major centres.
The AKB experts have recorded a 4.7 per cent year-on-year increase in asking rents. The average rent for a modern 4.5-room flat is therefore around CHF 2,200 to 2,300 excluding ancillary costs. The vacancy rate across the canton is currently 1.3 per cent.
The property experts at Kantonalbank expect prices for residential property and asking rents to continue to rise in the future. They are basing this forecast on continued strong population growth coupled with a continuing stagnation in construction activity. They also expect further reductions in key interest rates, which will have a positive effect on the return on property investments compared to comparable investments such as government bonds.