Home prices continue to rise
According to the Raiffeisen transaction price index, prices for condominiums and single-family homes were unaffected by the turnaround in interest rates in the second quarter.
Prices for condominiums rose by 1.2 % in the second quarter, while prices for single-family homes increased by 1.3 %. Compared to the second quarter of 2022, condominiums cost 5.1 % more than a year ago, while single-family homes have risen by 6.1 %. "In the tug-of-war between thin supply and higher financing costs due to interest rates, the supply shortage continues to have the upper hand," says Fredy Hasenmaile, Chief Economist at Raiffeisen Switzerland.
Zurich with lowest increase in condominiums
According to the Raiffeisen Transaction Price Index, single-family homes in Central Switzerland (+18.8%) and Eastern Switzerland (+9.8%) recorded the highest price increases compared to the previous year. By contrast, prices rose less sharply in Bern (+3.4%) and Northwestern Switzerland (+3.3%). Prices for condominiums rose the most in the Central Switzerland region (+11.3%). The Zurich region recorded the lowest year-on-year price increases (+1.4%).
Condominiums in tourist communities are particularly popular
The breakdown of price trends by municipality type shows that house prices in urban municipalities rose by 7.3 % within a year, more than in other municipality types. In the condominium segment, on the other hand, tourist municipalities recorded the strongest price increases (+7.9%). With an increase of 4.1 %, condominium prices rose the least in central municipalities. (aw)
