Canton Schwyz: Scarce supply drives up prices for residential property

The price of single-family homes in the canton of Schwyz rose more than anywhere else in Switzerland last year. The Schwyzer Kantonalbank explains the price increase for medium-sized properties of 15% with a tight supply situation. Although the supply rate has recently increased somewhat, it is still far below the Swiss average of 2.3%, at 1.1%. Last year, only around 150 single-family homes were approved for construction in the entire canton.

The situation is hardly more relaxed in the case of condominiums: Last year, the purchase price for a medium-sized condominium in the canton of Schwyz climbed by as much as 9%, which corresponds to a premium of around CHF 100,000. SZKB also blames this on changed needs as a result of the pandemic period - for example, greater importance attached to the issue of living comfort. Demand is also being fueled by financing terms that continue to be advantageous. But here, too, market activity is determined by the still very tight supply. At 1.7%, the cantonal supply rate for condominiums in the fourth quarter of 2021 was only half the long-term average. A look at the building permits issued also shows that an easing on the supply side is not in sight. For the current year, SZKB therefore expects "slight upward pressure" in the canton, with a plus of around 2% currently anticipated for the Central Switzerland region as a whole. (aw)