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Construction: Prices for newly produced dwellings 2017

Prices of newly built dwellings increased in 2017 at slower pace

Statistical news from Statistics Sweden 2018-11-23 9.30

Prices of newly produced dwellings, that is, the prices paid by investors, were higher in 2017 compared with 2016.

According to the Building Price Index (BPI), building costs increased by 4 percent for multi-dwelling buildings and by 6 percent for collectively built one- or two- dwelling buildings. The Building Price Index is quality-adjusted. Last year, building costs increased by 8 percent for both multi-dwelling buildings and collectively built one- or two- dwelling buildings.

Costs were highest in Greater Stockholm

Production costs for multi-dwelling buildings were SEK 45 398 on average per square metre of useful floor space in 2017. Production costs were lowest in southern Sweden, SEK 32 291 on average, and highest in Greater Stockholm, SEK 62 164 on average.

Production costs for collectively built one- or two- dwelling buildings were SEK 34 081 on average in 2017. Costs were lowest in northern Sweden, SEK 28 626, and highest in Greater Stockholm, SEK 41 909 on average.

High costs for tenant-owned dwellings

Production costs for multi-dwelling buildings that are intended to be tenant-owned dwellings are considerably higher, about 62 percent, compared with buildings intended to be rental dwellings (SEK 53 527 and SEK 33 161 respectively). Higher cost of land for tenant-owned dwellings in part explains the difference. The cost of land per square metre of useful floor space in multi-dwelling buildings was SEK 9 533 on average in 2017. In 2017, the cost of land for tenant-owned dwellings was SEK 13 367 on average, while the corresponding cost for rental dwellings was SEK 3 834 on average.

Newly constructed dwellings that form the basis of production costs vary in number and design from year to year, which makes comparisons over time difficult. However, this year’s results are similar to previous years in terms of differences between tenant-owned dwellings and rental dwellings.

Technical variables

Frames in multi-dwelling buildings were mainly comprised of concrete, 85 percent of multi-dwelling buildings are constructed using this material. Only 13 percent used wood in the frame, which is the highest proportion since 2004. Statistics on technical variables are available from 1995 and forward and refer to the entire country. These statistical tables are available in the statistical database.

Definitions and explanations

Production cost refers to the total cost of a dwelling project, that is, the sum of building costs and land costs. The production cost corresponds to the selling price 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 is the sum of useful floor space in dwellings and non-residential floor space.

The Building Price Index, BPI, is a helpful tool to measure cost development. Differences in quality, design and location are eliminated to the greatest possible extent.

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.

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