Recent newspaper reports in Sweden about private wealth have claimed that 20% of Swedes over 20 years of age are kronor millionaires ( 6.6 kronor = 1$) and this wealth is primarily (70%) vested in property, one of the reasons why Swedes have been getting wealthier recently. Although Stockholm’s OMX share index has risen by almost 40% since July 2006, the rise in house prices, at 9% in the last 12 months, has been impressive also.
The average house price for the whole country is 1.7m kronor but it is almost double this amount in the capital – 3.2m kronor. The trend seems to be on the rise with a national average house price of 4% in the second quarter. The northern province of Vasternorrland has seen an enormous 11% increase in this period.
Off the cuff conclusions that could be drawn from this situation are that some Swedish investors may be realising their stock exchange profits and re-investing them in housing and that for younger Swedes it must as if the first few rungs of the property ladder are being knocked away. Unfortunately for them, Sweden has traditionally had a rigid, controlled market in rented accommodation as well.