Real estate Single-family homes more expensive in September, condominiums cheaper
Prices for owner-occupied homes moved in opposite directions in September. While the highest increase in a long time was recorded for single-family homes, there was a slight decline for condominiums.
03.10.2024, 08:07
SDA
Specifically, single-family homes were advertised at 1.5 percent higher prices in September than in August, according to the latest "Swiss Real Estate Offer Index" published on Thursday by Immoscout24 and real estate consultancy IAZI. This represents a price increase of 1.7 percent within a year.
In contrast, asking prices in the condominium segment fell slightly by 0.3% last month. In annual terms, however, this still results in an increase of 2.9%.
"In the last twelve months, sellers of single-family homes have turned the price screw in both directions. Increases and decreases in the region of one percent were not uncommon," reads the commentary accompanying the price calculation. September has now seen the highest monthly increase in asking prices since December 2022.
As interest rates have been falling again since March of this year, financing conditions have once again improved significantly. With supply remaining tight, sellers apparently assumed that this would have a positive impact on demand for single-family homes despite the high price level. This is likely to be an important argument for sellers to increase prices again.
Rents more expensive almost everywhere
Meanwhile, asking rents became more expensive again in the month under review. According to the index, following a noticeable increase in August, they rose by a further 0.7% in September. Over the last twelve months, this represents an increase of 3.2%.
In the Central Switzerland region in particular, the increase last month was strong at +2.5%, according to the report. The major regions of Zurich (+1.6%), Northwestern Switzerland (+1.0%), Eastern Switzerland and Ticino (+0.9% each) also recorded above-average increases. There was no change in the Espace Mittelland region, while prices in the Lake Geneva region even fell by 0.7%.
Meanwhile, there is good news for tenants with existing contracts. Due to the third consecutive cut in the SNB's key interest rate last month and the prospect of further cuts, a fall in the reference rental rate in spring 2025 is now within the realms of possibility, according to the report.
