Different Housing Price Developments in the Canton of Zurich
In the canton of Zurich, the owner-occupied and rental housing markets are currently moving in different directions. Prices of owner-occupied homes are rising slightly, while rental apartments are moving sideways.
According to Zürcher Kantonalbank (ZKB), home price increases have been positive in recent quarters, but are no longer as strong as in the boom years. Residential rents, on the other hand, are moving sideways. In the canton, for example, transaction prices for residential property rose by 4.1 percent year-on-year in the second quarter of 2016, while market rents increased by only 0.8 percent. The two developments are also expressed in the measured insertion period. Condominiums again have to be advertised for slightly less time before they find a buyer. The slowdown in the rental market is reflected in slightly longer insertion periods. Due to the decline in immigration and the strong new construction activity of apartment buildings in recent years, the rental market has eased, writes the ZKB.
ZWEX transaction prices rose again in the second quarter. In the canton of Zurich, transaction prices for residential property have risen again since the end of 2014. The ZWEX climbed to 289.03 points in the second quarter of 2016, growing by 1.8 percent compared with the previous quarter. Year-over-year price growth results in 4.1 percent. Annual growth is lower in the lake communities (ZWEX See: +3.1 %) than in the other communities (ZWEX Regio: +4.5 %).
The ZWEX (Zurich Home Ownership Index) tracks the quality-adjusted price development based on real transactions using the hedonic method. The index base (index value=100) is the level of the first quarter of 1980. The ZWEX is calculated by IAZI AG (Information and Training Center for Real Estate). (mr)
