Swiss property prices fell for the first time in four years in the second quarter, UBS's real estate index showed on Friday, taking the heat out of a housing market that could stabilise further after lending requirements for mortgages were tightened.
Prices of condominiums and single family homes fell, helping to cut the index to 0.82 from 0.95 in the previous quarter and moving it further away from the "risk" zone that begins at the 1.0 level. "While the real estate market is still clearly booming, the decline indicates that the market has cooled off slightly," analysts from the bank in a note.
The price declines combined with rising wages, steady consumer prices and stabilising demand, they said. Minimum requirements for mortgage lending were tightened in July, meaning borrowers now need to raise at least 10 percent of the purchase cost without dipping into retirement savings. That could curb demand for homes and put a brake on prices in the coming quarters, the analysts said. But low interest rates, high population growt.
Comments
Comments are closed.