Construction: Prices for newly produced dwellings 2019
Prices of newly built multi-dwellings increased in 2019
Statistical news from Statistics Sweden 2020-11-19 9.30
Prices of newly produced dwellings, that is, the prices paid by investors, were higher for multi-dwelling buildings and lower for collectively built one- or two-dwelling buildings in 2019 compared with 2018.
According to the Building Price Index (BPI), building prices increased by five percent for multi-dwelling buildings and decreased by two percent for collectively built one- or two-dwelling buildings. The Building Price Index is quality-adjusted. Last year, building prices decreased by about two percent for both multi-dwelling buildings and collectively built one- or two-dwelling buildings.
Prices were highest in Greater Stockholm
The total average production price for multi-dwelling buildings was SEK 42 870 per square metre of useful floor space in 2019. Production prices were lowest in southern Sweden, where the average production price was SEK 35 079, and highest in Greater Stockholm, where the average price was SEK 52 217.
The average production price for collectively built one- or two-dwelling buildings was SEK 34 965 in 2019. Production prices were lowest in southern Sweden, where the production price was SEK 28 816, and highest in Greater Stockholm, where the production price was SEK 42 819.
Prices for tenant-owned dwellings were high
Production prices for multi-dwelling buildings that are intended as tenant-owned dwellings were 38 percent higher than for buildings intended as rental dwellings (SEK 49 344 compared with SEK 35 632). Higher prices of land for tenant-owned dwellings partly explains the difference. The average price of land per square metre of useful floor space in multi-dwelling buildings was SEK 7 685 in 2019. In 2019, the average price of land for tenant-owned dwellings was SEK 10 023, while the corresponding price in rental dwellings was SEK 4 465.
The number and design of newly constructed dwellings that form the basis of the production price vary from year to year, making comparisons over time difficult. However, this year’s results indicate that prices are higher for multi-dwelling buildings and lower for collectively built one- or two-dwelling buildings and similar to prices in previous years in terms of differences between tenant-owned dwellings and rental dwellings.
Technical variables
The structural work in multi-dwelling buildings predominantly consists of concrete, 79 percent, while 20 percent of multi-dwelling buildings have frameworks consisting 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.