Construction: Prices for newly produced dwellings 2018
Prices of newly built dwellings decreased in 2018
Statistical news from Statistics Sweden 2019-11-21 9.30
Prices of newly produced dwellings, that is, the prices paid by investors, were lower in 2018 compared with 2017.
According to the Building Price Index (BPI), building prices decreased by two percent for multi-dwelling buildings and by two percent for collectively built one- or two-dwelling buildings. The Building Price Index is quality adjusted. Last year, building prices increased by about four percent for multi-dwelling buildings and by six percent for collectively built one- or two-dwelling buildings.
Prices were highest in Greater Stockholm
Total average production prices for multi-dwelling buildings amounted to SEK 41 103 per square metre of useful floor space in 2018. Production prices were lowest in the centre of Sweden, where average production prices amounted to SEK 35 372, and highest in Greater Stockholm, where the average price was SEK 50 503.
The average production price for collectively built one- or two-dwelling buildings was SEK 34 928 in 2018. Production prices were lowest in southern Sweden, where the production price was SEK 28 626, and highest in Greater Stockholm, where the production price was SEK 46 490.
High prices for tenant-owned dwellings
Production prices for multi-dwelling buildings that are intended as tenant-owned dwellings are higher, about 42 percent, compared with buildings intended as rental dwellings (SEK 48 525 and SEK 34 179, respectively). Higher prices of land for tenant-owned dwellings explains the difference in part. The average price of land per square metre of useful floor space in multi-dwelling buildings was SEK 7 511 in 2018. In 2018, the average price of land for tenant-owned dwellings was SEK 11 716, while the corresponding price in rental dwellings was SEK 3 588.
Newly constructed dwellings that form the basis of production price vary in number and design from year to year, making comparisons over time difficult. However, this year’s results indicate that prices are lower, and similar to prices in previous years in terms of differences between tenant-owned dwellings and rental dwellings.
Technical variables
The framework in most multi-dwelling buildings is comprised of concrete, 85 percent, while 13 percent of multi-dwelling buildings have frameworks comprised of wood. Statistics on technical variables are available from 1995 and forward and refer to the entire country. These statistical tables are available in the Statistical Databases on Statistic Sweden’s website.
Definitions and explanations
Production price refers to the total price of a dwelling project, that is, the sum of building costs, land costs, VAT, and any profit or loss of the building project. The production price is the selling price and corresponds to the previous term ‘production cost of the project’.. Deductions for any subsidies have not been made.
Collectively built one- or two-dwelling buildings refers to buildings intended for sale or rental as rental or tenant-owned dwellings.
Useful floor space in dwellings (with certain limitations) refers to space above ground in a dwelling. Useful floor space is limited by the finished inside walls that enclose each dwelling, and includes kitchen cupboards, wardrobes and the like.
Non-residential floor space in dwellings refers to spaces for offices, shops and similar.
Useful floor space refers to the sum of useful floor space in dwellings and non-residential floor space.
The Building Price Index (BPI) is a helpful tool for measuring price development. Differences in quality, design and location are eliminated to the greatest extent possible.
Statistical Database
More information is available in the Statistical Database
Feel free to use the facts from this statistical news but remember to state Source: Statistics Sweden.