Home Sales Are Picking Up Clearly in Uusimaa, Says Regional Lender
-
Loading... - Japheth Young
- 25 Jul 2024
- 68 Views
- 0 Like
- 0 Comment
The real estate market in Uusimaa, Finland's most populous region, is showing a noticeable resurgence. According to a market review by the regional branch of OP Financial Group, home sales are clearly picking up. This recovery trend is supported by statistics from the Federation of Real Estate Agency (KVKL), highlighting significant sales increases in old dwellings in key areas within the capital region.
In the second quarter of 2024, the sales of old dwellings in Uusimaa's capital region surged by 21% compared to the previous quarter. This increase in activity is particularly evident in popular districts such as Lauttasaari, Kallio, and Punavuori in Helsinki, and Tapiola in Espoo. Buyers are flocking to these areas, indicating a strong demand for homes in these vibrant neighborhoods.
The entire Uusimaa region experienced a similar 21% rise in home sales from the first quarter of the year. This trend suggests a broad recovery in the real estate market across the region, with both urban and peri-urban municipalities seeing increased activity.
Peri-urban areas in Uusimaa have been particularly busy, with sales of old dwellings rising by 24% from the previous quarter. Municipalities such as Hyvinkää, Järvenpää, and Porvoo have seen significant increases in sales, reflecting growing interest in these areas as desirable places to live.
Satu Astala, the managing director of OP Koti in Uusimaa, noted that average home prices per square meter have increased by around 2% in the region. This uptick in prices suggests that the market may have reached its low point and is now on an upward trajectory.
Statistics Finland's consumer confidence data shows a strong increase in home-buying plans, especially in the capital region. In June, such plans rebounded to levels seen in late 2022, with approximately 21% of consumers in the capital region intending to buy a home within the next 12 months. This renewed confidence bodes well for continued growth in the real estate market.
Despite the recent resurgence, home sales in Uusimaa between January and June 2024 decreased by 7% compared to the same period in the previous year. However, the recent upward trend suggests a potential recovery in the latter half of the year.
The increase in home-buying interest is also reflected in housing loan applications. Although the number of applications dropped by 5% year-on-year in the first six months of 2024, there has been a noticeable increase after a slow start to the year. Weekly application numbers hit new highs for the year in June, indicating growing demand for housing loans.
Loan applications for buy-to-let homes increased by up to 10%, with the average loan granted to aspiring investors standing at 103,000 euros in the first half of the year. This represents a 19,000-euro drop from the previous year, making buy-to-let properties more appealing to investors, particularly in Helsinki.
The real estate market in Uusimaa is experiencing a clear resurgence, with significant increases in home sales and rising home prices. Consumer confidence is rebounding, and housing loan applications are on the rise, signaling a positive outlook for the region's real estate market. As the market continues to recover, Uusimaa is poised to see continued growth and investment in its vibrant and desirable neighborhoods.
