The prices of old detached houses in the Helsinki region have fallen sharply for six months. The prices of old detached houses in the capital region fell by 8.9 per cent in the first quarter of the year – as much as 6.3 percentage points more than elsewhere in Finland – indicate data published by Statistics Finland on Friday.

The prices of old detached houses in the country therefore fell by an average of 3.3 per cent between January and March.

Although the plunge in the Helsinki region may seem dramatic, it is largely attributable to the fact that only 132 detached houses were sold in the first quarter of the year. The sales, Statistics Finland highlights, account for less than six per cent of the completed sales of detached houses in the country.

Moreover, such fluctuations are hardly unprecedented in the real estate market in the Helsinki region: similar falls of 8—9 per cent were also observed in 2009 and 2012.

On the other hand, the prices of old detached houses have now fallen sharply for six months on the trot, having plummeted by over ten per cent between October and December.

The prices per square metre reached their peak of 3,158 euros in early 2012. Since then, however, the prices have fallen by nearly 300 euros to the current 2,861 euros per square metre, translating to a reduction of 30,000 euros in the prices of 100 square metre detached houses.

“It's a general trend. The prices of other house types have also fallen, as especially the sales of large houses have waned. Their prices are comparable to those of detached houses,” says Petri Kettunen from Statistics Finland.

In all of Finland, the average price of old detached houses was 1,531 euros per square metre at the beginning of the year.

Between January and March, the prices of detached house plots similarly fell moderately from the previous year, to an average of 20.3 euros per square metre. The prices of new detached houses, on the other hand, increased marginally from the levels of last year.

Piia Elonen – HS
Aleksi Teivainen – HT
Photo: Marja Saleva / Lehtikuva