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Been looking at Finnish housing prices since early in the year.  And gagging.  

I don't understand why housing is so expensive, across the board, the Nordic countries.  I understand winter is an issue ....

but ...

still.

She believed in nothing; only her skepticism kept her from being an atheist. -- Jean-Paul Sartre

by ATinNM on Wed Sep 14th, 2011 at 11:49:36 AM EST
[ Parent ]
I understand winter is an issue ....

It's not. The issue is the same as in Ireland and Spain.

The Serious People claim that the value of an apartment in a "middle of nowhere" town in Finland is 2400e/m2.

Of course it is nothing like this.

by kjr63 on Thu Sep 15th, 2011 at 04:35:11 AM EST
[ Parent ]
No, no, that can't be. Only swarthy Mediterraneans engage in unsustainable debt-fuelled property speculation.

Economics is politics by other means
by Carrie (migeru at eurotrib dot com) on Thu Sep 15th, 2011 at 04:55:32 AM EST
[ Parent ]
I understand there are old warehouses in Helsinki one can pick-up for (relative) cheap.  Wonder about purchasing one of those and turning it into a residence.

It's not like I haven't done that stuff before.

(sigh)

She believed in nothing; only her skepticism kept her from being an atheist. -- Jean-Paul Sartre

by ATinNM on Fri Sep 16th, 2011 at 01:09:05 AM EST
[ Parent ]
Brick storage buildings are no longer in demand due to the pan-Fenno  JIT production methodology. But their use permits have to be legally changed to residential. I know one photographer who managed to add a 'janitor' apartment to his studio.  Overall though, I am surprised that more of these buildings haven't been converted to residential.

You can't be me, I'm taken
by Sven Triloqvist on Fri Sep 16th, 2011 at 02:16:38 AM EST
[ Parent ]
If the Helsinki city government is looking for a place to incubate a Creative Class, there it is.  Old warehouses are marvelously adaptable and wonderful spaces for doing all kinds of things.  

Have to dig into it to discover why people haven't snapped them up.  Answers could range from Helsinki government unwillingness to change the zoning and/or issuing permits allowing conversion up to the people who have thought of it don't have and can't borrow the money to buy and convert them.

She believed in nothing; only her skepticism kept her from being an atheist. -- Jean-Paul Sartre

by ATinNM on Fri Sep 16th, 2011 at 10:28:19 AM EST
[ Parent ]
ATinNM:
I don't understand why housing is so expensive, across the board, the Nordic countries.  I understand winter is an issue ....

Is it? Compared to percentage of income or what?

At least in Sweden, there is (still) a large public owned housing sector which sets the standard for rents, which should keep them at fairly decent level.

Is it perhaps that construction workers are (still) unionised well-paid workers?

Sweden's finest (and perhaps only) collaborative, leftist e-newspaper Synapze.se

by A swedish kind of death on Sat Sep 17th, 2011 at 08:56:31 AM EST
[ Parent ]
Compared to the risk I'm prepared assume:

In the last 10 years, the price of tenant-owner apartments nationwide has risen by 153 percent [Me: eek!,] while small houses have grown in value by a comparatively modest 72 percent.  [Me: "modest" 72%????]

In 2000, buyers had to pay 8,314 kronor per square metre ($115 per square foot) for a flat in Sweden. But by the end of 2010, Swedish apartment prices had risen to 21,057 kronor per square metre ($293 per square foot).

(cite)

Looking at the price rise and comparing to the average Swedish salary I conclude Sweden (and Finland) is experiencing a real estate bubble.  


She believed in nothing; only her skepticism kept her from being an atheist. -- Jean-Paul Sartre

by ATinNM on Sat Sep 17th, 2011 at 10:56:28 AM EST
[ Parent ]
Oh, you mean the bubble. Yes, it is still there. I thought you meant something more structural.

Note that average price is skewed towards units that are hold for a short time and also more costly units. From what I have seen the price rise has been moderate outside the mayor cities. Outside the mayor cities is also where the renting market with the controlled rents works best as there is no housing shortage and the town council acts as landlord of last resort.

To pick from the adds:
Alvägen 4 - 5 room house in Vännäs kommun/Vännäs | Hemnet

695 000 kr

Vännäs is a nice little town outside Umeå.

Södra Vägen 8 - 5 room house in Stockholm | Hemnet

4 600 000 kr

Ok, it is also bigger, but there is also a lot of bubble going on.

European Tribune - Housing bubble in Sweden going pop?

After some debate an interesting line-up formed. On one hand the central bank and the real estate salesmen denied that a bubble could be predicted at all. The central bank because bubbles can be known in their limited world and the salesmen because everybody knows that prices go up-up-up. On the other side was Bostadskreditnämnden, the treasury and the largest banks.

Still has not popped.

Sweden's finest (and perhaps only) collaborative, leftist e-newspaper Synapze.se

by A swedish kind of death on Sat Sep 17th, 2011 at 02:14:05 PM EST
[ Parent ]

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