Condominiums become more expensive in the first half of the year
Condominiums become more expensive in the first half of the year
Keystone-SDA
Residential property prices in Switzerland showed varied trends in the first half of 2024. While the cost of condominiums rose compared to the end of 2023, single-family homes became more affordable over the same period.
This content was published on
3 minutes
Keystone-SDA
Deutsch
de
Eigentumswohnungen verteuern sich im ersten Halbjahr weiter
Original
According to a report from mortgage broker Moneypark and Zurich-based real estate data startup Pricehubble, condominium prices increased by an average of 0.5% across Switzerland in the first half of the year. Conversely, prices for single-family homes dropped by 2.2%.
However, when compared to a year ago, prices for both categories saw a 1.9% increase.
Regionally, the decline in prices for detached houses was more pronounced in French-speaking Switzerland (-4.0%) than in German-speaking Switzerland (-1.3%). Owner-occupied apartment prices rose in German-speaking Switzerland (+0.6%) but became slightly more affordable in French-speaking Switzerland (-0.2%).
The report highlights a significant shift in the type of financing chosen by homeowners. The volume of Saron mortgages taken out fell by 58% compared to the second half of 2023. Despite two key interest rate cuts by the Swiss National Bank (SNB) in the first half of the year, these mortgages have lost their appeal. The share of money market mortgages in all mortgages granted dropped significantly from 19% to 8%.
Fixed-rate mortgages with terms of up to 10 years have become cheaper since October 2023, capturing market share from Saron products. More than a third of the mortgages concluded in the first half of the year were in categories with terms between 5 and 9 years and 10 or more years. Additionally, short-term fixed-rate mortgages with terms of 1 to 4 years achieved a record market share of 15%.
Market dynamics among mortgage providers
Moneypark and Pricehubble observed that cantonal banks particularly benefited from Credit Suisse’s recent difficulties. These banks increased their margins and did not offer the most competitive conditions in the market during the first half of the year.
Consequently, the mortgage volume brokered by Moneypark shifted significantly in favor of insurance companies and pension funds.
Adapted from German by DeepL/amva
This news story has been written and carefully fact-checked by an external editorial team. At SWI swissinfo.ch we select the most relevant news for an international audience and use automatic translation tools such as DeepL to translate it into English. Providing you with automatically translated news gives us the time to write more in-depth articles.
If you want to know more about how we work, have a look here, if you want to learn more about how we use technology, click here, and if you have feedback on this news story please write to english@swissinfo.ch.
No heat records in sight (yet) despite the ‘dog days’
This content was published on
The dog days—traditionally the hottest days of the year—began on Tuesday. However, the weather service Meteonews predicts that Switzerland is unlikely to see new temperature records in the near future.
Swiss employees to work slightly more in 2023 than in previous year
This content was published on
The long-term trend is different with the weekly working hours per full-time employee decreased significantly, says a report by the Federal Statistical Office.
Consumers still crave chocolate: Lindt & Sprüngli reports higher earnings
This content was published on
Lindt & Sprüngli sold chocolate worth CHF 2.16 billion in the first half of the year. This is slightly more than in the previous year.
This content was published on
Bollinger will succeed Philipp Rickenbacher, who resigned in February after a significant write-down on loans to the Signa Group.
Majority of young Swiss well-trained, army fitness test reveals
This content was published on
More than half of young Swiss men and women are considered well-trained, with around 80% meeting the federal government's exercise recommendations, according to the Armed Forces 2023 fitness test.
Italian consulate to relocate to ‘Casa d’Italia’ in Zurich
This content was published on
The Italian state is renovating the "Casa d'Italia" in Zurich's Kreis 4 district, with plans to move the Consulate General from its current location on Tödistrasse in District 2 to this historic building.
Swiss companies maintain financial stability amid European struggles
This content was published on
Swiss companies continue to demonstrate financial robustness compared to their European counterparts, although corporate restructuring activities have increased in recent months.
This content was published on
Unknown assailants detonated an ATM in canton Vaud early Sunday morning, causing extensive damage to the building. The perpetrators fled the scene and remain at large.
You can find an overview of ongoing debates with our journalists here . Please join us!
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.