Prices of dwellings

Housing prices

How do prices of dwellings develop in different parts of Finland? Are dwellings getting sold?

The development of the housing market in different parts of Finland can be examined on the basis of transaction data on old dwellings in housing companies and on single-family houses.

The statistical data in the service describe the unencumbered prices per square metre of dwellings in housing companies and single-family houses and changes in them. In addition, the data on the numbers of transactions can depict the activeness of transactions in different areas. The data on old dwellings in housing companies are based on the Tax Administration’s asset transfer tax statements and the data on old single-family houses on the National Land Survey's purchase price register.

The service includes longer time series than previously published on the prices per square metre of old dwellings in housing companies and numbers of transactions. The data on the prices per square metre and numbers of transactions extend to 1990 and they are available on the level of the whole country, Greater Helsinki and the rest of Finland, and by region, municipality and postal code area. Data on the price development of regions without regional centres also bring a different view to the monitoring of regional housing markets (price index 2015=100).

Data are available on old single-family houses with the division of major regions and the population classification until 2010.

Data on the price development of dwellings and numbers of transactions

The service contains data on the prices per square metre of sold old dwellings in housing companies and single-family houses, changes in prices and numbers of transactions. The key variables of the data content are

  • Price per square metre of dwellings sold
  • Nominal price index and real price index
  • Annual and quarterly changes in the nominal price index and the real price index
  • Number of dwellings sold
  • Distribution data of prices per square metre

Data on old single-family houses also include the floor area of the dwellings sold.

The latest data on the prices of old dwellings in housing companies include only around 50 per cent of all transactions. The data become revised during the following months so that the final data for the year are published in May of the following year. It is not recommended to use the latest data on the number of transactions for describing the activeness of trading. Data on old single-family houses do not get revised.

The prices per square metre change in a different way than the price index, because the price index takes account of the characteristics of dwellings sold at different periods (e.g. year of completion, floor area and location) and their price effects. On the basis of the price index, it is possible to follow the change in dwelling prices compared to different periods, that is, how much more or less a typical dwelling costs now than earlier. The price per square metre gives a picture of the area’s price level.

 

Dwelling

A dwelling refers to a room or suite of rooms that is equipped with a kitchen, kitchenette or cooking area and is intended for year-round habitation.

Price per square metre of dwelling

The statistics are compiled from data on unencumbered prices, in another words, prices inclusive of the debt portion. The published price concept is price per square metre (EUR/m²). The published prices per square metre of old dwellings in housing companies is weighted geometric mean of prices of square metre (EUR per m²). The published prices per square metre of old single-family houses are floor area-weighted arithmetic averages of prices per square metre (EUR per m²).

Floor area of dwelling

The area of a dwelling, i.e. a residential dwelling is the floor area that is limited, on the one hand, by walls surrounding the dwelling, on the other hand, by the main walls and the surfaces of building parts in the inside of the dwelling necessary for the whole building.
The floor areas of auxiliary spaces (utility space, walk-in wardrobe, etc.), bathroom, hobby room, fireplace room, sauna in a dwelling, washroom and changing room, and rooms used as working space if no hired employees work in them are also included in the floor area of a residential dwelling. Garage, cellar, sauna space in unfurnished basement, unheated storage space, balcony, porch, veranda, vestibule and unoccupied attic spaces are not included in the floor area of a residential dwelling.
The average area of single-family houses refers to floor area (m²)

Old/new dwelling

An old dwelling refers to a dwelling that has not been completed in the examined year or the year before it. Respectively, a new dwelling refers to a dwelling completed in the statistical reference year, after that or the year before it that is sold for the first time.

Type of building

The dwellings in the statistics of dwellings in housing companies are classified into blocks of flats and terraced houses according to type of   building. The data on terraced houses also include detached houses whose tenure is based on ownership of housing company shares.

Type of financing

Dwellings financed with ARA subsidised housing loans and price controlled HITAS dwellings are not included in the non-subsidised dwelling category used in the statistics of dwellings in housing companies.

Number of rooms

A room is defined as a space with one or more windows that has a floor area of at least seven square metres and a mean height of at least two metres. A hall, porch, bed recess or other similar space is not regarded as a room.  Kitchen is not included in the number of rooms. Dwellings with at least three rooms are classified into room number category 3h+.

(Nominal) price index

Describes the change in prices compared to the base period of the index concerned.  On the basis of the price index, it is possible to follow the change in dwelling prices compared to different periods, that is, how much more or less a typical dwelling costs now than earlier. Because the composition of dwellings sold at different times is not the same, the calculation of the index aims to separate genuine price development from price changes caused by the characteristics of the dwellings sold.

Real price index

Describes the change in real prices compared to the index base period. The real price index is derived by dividing the point figure of the nominal price index for the area with the point figure of the Consumer Price Index for the whole country in the corresponding time period and base year.

Point figure

Point figure is a change quantity used in price indices, which expresses the price, average price or index of the comparison period relative to the price, average price or index of the base period. The point figure of the base period is usually denoted by the number hundred. For example, if the point figure of a commodity at a certain point in time is 105.3, the price of the commodity has risen by 5.3 per cent compared to the base time period.

Distribution parameters

Q1 (lower quartile) = 25% of the observations remain below.
Med (median) = Middle observation when the observations are arranged in size order.
Q3 (upper quartile) = 75% of the observations remain below.

Number of transactions

Describes the recorded number of transactions made on dwellings in the area. The data on numbers of old dwellings in housing companies will become revised in the following releases so that the final data for the year are published in the release concerning the first quarter of the following year. The number of transactions also include transactions of price controlled HITAS dwellings and Housing Finance and Development Centre ARA dwellings in the area not included in the price indices and prices per square metre.
Data on old single-family houses do not get revised. The statistics on old single family houses do not include single-family houses on rented plots.

Single-family house real estate

A real estate whose use purpose is a residential building area and which has only housing buildings and ancillary buildings, and it is not located in the shore plan area. If the real estate is in a building plan or town plan area it is also required that the nature of the plan is a residential building or detached house area.

Real estate

A real estate is a unit of ownership in a land or water area with a specific code entered in the Tax Administration’s real estate register. The real estate includes the buildings and fixtures located there and owned by the owner of the real estate.