Housing: Reference interest rate remains at 1.5 percent
The mortgage reference rate published by the Federal Housing Office BWO at the beginning of December remains at 1.5 percent. It thus remains at the same level as the rate last published in September.
Since the reference rate has not changed from the previous quarter, there is no new reduction or increase claim since the last announcement, the BWO said.
The Swiss Homeowners' Association (HEV) assumes that there will be no change in the upcoming publication of the reference interest rate in spring 2019. Thanks to the continued low mortgage interest rates and the weak inflation, relatively stable rents for existing properties can be expected - despite the large investment activity of landlords for maintenance and value-enhancing and energy-related additional services, writes the association in a statement.
According to HEV, the current vacancy rate has increased to 1.62 percent in 2018, with 59,700 rental apartments vacant across Switzerland. With housing production "running at full speed," a further increase in vacant apartments is expected, it said. The greater choice of rental apartments will further depress initial rents in new leases, he said.
According to the Swiss Real Estate Offer Index, which is compiled by ImmoScout24 and IAZI, advertised rents fell again across Switzerland in November - but only by 0.1 percent. An average of CHF 2,163 per month is currently being asked for a 100 sqm apartment. However, rental prices are developing differently depending on the part of the country: in contrast to the national average, asking rents in the Zurich region (+0.3%) and in eastern Switzerland (+0.2%) have risen slightly. Stronger declines in rental prices can be seen in Ticino (-0.6%), central Switzerland (-0.3%) and northwestern Switzerland (-0.2%). (ah)
