Homeownership achieves record prices
The prices for single-family houses and condominiums rose to record levels in the second quarter. Prices for single-family houses rose the most in the Lake Geneva region and for condominiums in southern Switzerland. This is shown by the latest Raiffeisen transaction index.
Those who want to live in their own four walls have to dig deeper into their pockets. The prices for owner-occupied residential property rose to new record levels in the second quarter, informs Raiffeisen Switzerland in a statement on the current transaction index of the cooperative banking group. "Despite the rampant pandemic and historical economic upheavals, the desire for home ownership remains strong," Martin Neff is quoted as saying. For the chief economist at Raiffeisen Switzerland, the “unchecked price increases” are signs of a “very tight supply” demand for residential property.
The prices for single-family homes in the second quarter of 2021 were 2.1 percent above those of the previous quarter, the announcement further explains. In a year-on-year comparison, prices rose by 6.1 percent. An increase of 2.4 percent compared to the previous quarter was observed for condominiums. In a year-on-year comparison, prices were 4.9 percent higher.
In terms of regions, the analysts at Raiffeisen Switzerland recorded the highest year-on-year increase in single-family homes with 11.3 percent in the Lake Geneva region. In Eastern Switzerland and Central Switzerland, too, prices were more than 9 percent higher than in the same quarter of the previous year. The prices for condominiums rose within the year by 7.9 and 7.0 percent respectively in the regions of southern Switzerland and Bern. Far higher prices than in the previous year were achieved for condominiums, especially in tourist communities.