Real estate Condominiums continue to rise in price in the first half of the year
Residential property prices developed differently in the first half of 2024. While condominiums have become more expensive again compared to the end of 2023, single-family homes have become cheaper in the last six months.
23.07.2024, 08:16
SDA
Prices for condominiums rose by an average of 0.5 percent across Switzerland in the first half of the year, as mortgage broker Moneypark and Zurich-based startup Pricehubble, which specializes in real estate data, reported on Tuesday. Single-family homes, on the other hand, were available for 2.2 percent less.
However, a comparison of prices with a year ago shows a price increase of 1.9 percent for both categories.
From a regional perspective, the fall in prices for detached houses in the first half of the year was more pronounced in French-speaking Switzerland (-4.0%) than in German-speaking Switzerland (-1.3%). Prices for owner-occupied apartments rose in German-speaking Switzerland (+0.6%), whereas they were more affordable in French-speaking Switzerland (-0.2%).
Saron mortgages no longer popular
In terms of the type of financing, the 58% decline in the volume of Saron mortgages taken out compared to the second half of 2023 is striking. Despite the two key interest rate cuts by the SNB in the first half of the year, these mortgages are no longer the first choice, according to the report. The share of money market mortgages in all mortgages granted fell significantly from 19 percent to 8 percent.
Fixed-rate mortgages with a term of up to 10 years have been cheaper since October 2023 and have taken market share away from Saron products accordingly. More than a third of the volume of mortgages concluded in the first half of the year were in the categories with terms of between 5 and 9 years and 10 or more years.
At the same time, short-term fixed-rate mortgages with a term of 1 to 4 years achieved a record market share of 15 percent.
Among mortgage providers, Moneypark and Pricehubble note that the cantonal banks in particular have benefited from Credit Suisse's bloodletting. They have increased their margins and did not offer the most attractive conditions on the market in the first half of the year. Accordingly, the mortgage volume brokered by Moneypark has shifted significantly in favor of insurance companies and pension funds.
