More properties on the market Due to high prices, the sale of new builds is stalling
More properties are currently available again on the owner-occupied home market - especially in the new-build segment. However, despite high demand, the sale of new-builds is faltering. The main reason for this is the high price level.
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- More properties than usual on the market: over 11,000 new-build apartments are advertised for sale on Homegate.
- There are many offers, especially in Zurich.
- The reason for the vacancy rate is apparently the high prices.
According to a study, the higher interest rates in the two previous years deterred some prospective buyers from purchasing. In the meantime, however, financing conditions have improved again. Nevertheless, there are no signs of a return to the market situation prior to the rise in interest rates, according to the latest edition of the Zürcher Kantonalbank (ZKB) publication "Immobilien aktuell", which was published today.
More than 11,000 new-build apartments in Switzerland are currently advertised for sale on Homegate - significantly more than in previous years. Many properties are advertised in the city of Zurich in particular - despite the continuing high demand for urban living. In addition, there is no sign of any particularly brisk construction activity on the supply side, the ZKB continues.
The reason for this is the increased costs: construction costs have risen following the pandemic and due to the war in Ukraine, which has led to higher asking prices. According to the ZKB, these have decoupled from the prices of existing buildings.
Costs dampen willingness to buy
However, the desire to push through the high prices does not always stand up to reality: "On the contrary. The so-called new-build premium has fallen in recent years," it says. According to the bank, new-build apartments now only cost around 10 percent more than comparable apartments in older buildings.
Overall, the new-build segment is intact. However, fewer and fewer potential buyers are able to finance the high real estate prices. Marketing properties worth over CHF 2 million is becoming increasingly challenging.
This gives buyers more choice and opportunities for price reductions, the report continues. In the canton of Zurich, for example, the transaction prices of 57 percent of single-family home sales this year were below the asking prices.
SDA
