Sweden’s real-estate market needs a bigger property supply instead of tougher mortgage lending rules if the largest Nordic economy is to avoid a bubble, Housing Minister Stefan Attefall said.
And it went on and said:
The number of completed apartments in Sweden averaged 20,000 a year last decade, down from an average of 53,000 since 1960, according to the statistics office. The number of apartment-building starts last year rose 48 per cent from 2009, when it hit a 10-year low following the financial crisis, according to the agency.
I am not familiar with that market, of course. I just find it interesting to see how people all over the world try to explain real estate bubbles using pretty much the same set reasons. Namely, blaming the shortfall in annual new supply and fail to take the total housing stock into consideration.
And by the way, if you have looked at my previous article on ageing and asset prices, you will see that Sweden is on the list too, although the downside due to ageing is not as severe as in somewhere else.
This article originally appeared here: Swedish Real Estate: Supply Shortage Too?
Also sprach Analyst – World & China Economy, Global Finance, Real Estate
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