HS Turku | You may have to sell an apartment in Turku now with a monthly sale – One area holds its ground

The housing market is sticky right now. The chief economist predicts that the market will return to a normal level by the end of the year.

Apartments selling has slowed down significantly. Marketing times were extended to 80 days in January in Turku. A year ago in January, apartments were sold in an average of 50 days.

The data comes from the Oikotie Asunnot online service, which publishes apartment ads, and HS received the data for analysis. Areas from which at least 10 apartments were sold in January 2022 and 2023 have been included in the analysis.

Bridge at the moment, trade is fastest in the Pohjola-Kastu postcode area. The sales times there were an average of 53 days.

Sales times of more than a hundred days were painful in Vasaramäki and Nummi-Ylioppilaskylä.

However, the apartment-specific differences are large. The fastest apartment was sold in Nummi-Ylioppilaskylä in 20 days, the longest it took 446 days.

In the capital region, the change has been even sharper than in Turku. There the marketing period increased from 45 days for 85 days.

Finland Chief economist of the mortgage association Juhana Brotherus says that Turku is a little behind the development of Tampere in the housing market.

“Turku has done quite well in terms of trade volumes. In Turku, as in all big cities, during the corona crisis, trade volumes plunged by 40 percent, but they recovered very quickly. From summer 2020 to summer 2022, trade was really strong. After that, the business waned,” Brotherus explains.

Last year, November was the darkest month in brokers’ statistics, Brotherus reveals. The housing market recovered slightly in December.

“Preliminary signs from the beginning of this year indicate that the trade has remained at the most upbeat December level, still clearly quieter than normal.”

According to Brotherus, the extension of Turku’s marketing times from 50 to 80 days is significant. However, he reminds us that in January 2022 we were living in an even hotter than usual housing market time, so it does not completely describe the normal situation.

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“We went from hot to cold in half a year”, Brotherus describes the turn of the year 2022.

Marketing times are now exceptionally long, trading volumes are unusually low and prices are trending downwards.

New apartments have been built in Turku, especially in the harbor area.

Brother divides the reasons into three parts: interest rates, costs, and uncertainty caused by war.

“And in this order, when we talk about Turku in particular.”

The rise in interest rates hits especially those housing markets where housing prices are higher than average, such as in Turku.

“If the interest rates on apartments, which are typically bought with debt, rise from zero at the beginning of last year to the current three and a half percent, or even more, it cannot be invisible in the housing market,” Brotherus reminds.

In Turku, the rise in interest rates has increased the number of buyers of studio apartments, because the rise in interest rates hits investors in particular.

The increase in the price of energy and food, on the other hand, has caused that households do not have money to put towards housing.

“Thirdly, the uncertainty caused by war typically leads to consumers becoming extremely cautious. In such uncertain conditions, the household’s biggest purchases go on hiatus,” says Brotherus.

So what kind of apartments go on sale?

“Especially in places like Turku, properly priced apartments,” Brotherus sums up.

“Not all sellers are ready to sell at the price that the market price has reached, but are ready to wait even a year,” he reminds, however.

According to Brotherus, prices have dropped the least in compact triangles and energy-efficient larger apartments. Functional transport connections also have an effect.

Juhana Brotherus’ tips for apartment buyers

  • Now is definitely a buyer’s market.

  • The buyer should bargain.

  • The buyer should get to know each other in peace, there is no need to rush now.

  • The buyer should get to know the building company inside and out. Is the property owned, for example, by one large housing fund? It can have effects, for example, on the housing association’s chances of getting financing for repair projects.

  • You still have to remember the fundamentals. What is the durability of your own purse, even in stressful situations? What are your housing needs?

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In Turku marketing hours have increased in almost every zip code area. Only in the Kärsämäki-Urusvuori-Halinen area did the trade go roughly at the same pace as a year ago.

Compared to the capital region, however, growth has been moderate in Turku. In many postcode areas of the capital region, sales times even tripled.

In Turku, marketing times did not double in any area.

According to Brotherus, the difference between Turku and the capital region is explained by the price.

“Prices in the capital region are clearly more expensive than in the Turku region, so the increase in interest rates hits the capital region the strongest in the whole country.”

Of course, sales in the capital region were very fast a year ago, for example, in Helsinki’s Roihuvuori, an apartment was sold in an average of 11 days. In Turku a year ago, the fastest sales were in Moikoinen-Pikisaari and Varissuo, on average 32 days.

The regional analysis only includes areas where at least ten apartments were sold.

The analysis does not take into account differences in the size and condition of the apartments. For example, selling apartments in poor condition can be slower than those in good condition.

Now it’s a buyer’s market, says Chief Economist Juhana Brotherus.

Turku however, the region’s SME region’s better situation in market times does not mean a direct migration flow to the region.

“The prices of apartments are falling all over the place, so the key to the long-term future is how the development and construction of the area continues. Does it completely freeze in these conditions? I don’t believe in the official predictions about the number of buildings planned for this year. They are more wishes than information”, says Brotherus in general.

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Brotherus sees a lot of potential in Turku. On the scale of Finland, Turku has an exceptionally high number of sprouts, he describes.

“The natural point of comparison is Tampere, where many really large urban development projects have been carried out. In Turku, these have yet to be done. For example, the Turku tramway project has a lot of potential, as does the accessibility of the entire region to the SME region with the Hour train.”

MARKETING TIME means the time the announcement has been visible in the online service. Sometimes the ad can be removed from the service for reasons other than the fact that the apartment has been sold.

The marketing time may not completely correspond to the actual sale time, because the announcement is often not removed from the service on the day of signing the sales documents.

HS’s analysis included all old owner-occupied apartments, apartment buildings, terraced houses, semi-detached houses and single-family houses, not new properties.

BELOW from the search engine you can view the development of price requests and supply in your zip code area in the three-month period from November 2022 to January 2023.

Brother believes that housing sales will return to a normal level towards the end of 2023. However, it does not mean a return to the exceptionally hot time that started at the end of 2020.

“It must be said from the bank’s point of view that there were signs of excesses in that heat. Not all buyers got to know the objects, exceptionally people bought without even seeing the objects. The items were paid more than asked for and they did not meet their own needs. The fact that such factors have left the market is a good thing.”

Brotherus believes that by the end of the year we will get close to 2019 and 2018.

“However, the turnaround in prices only happens with a delay.”

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