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Housing loans, apartment prices see decline in October

The last time housing loan drawdowns were at such a low level was in 2004, Finland's central bank says.

File photo. Image: Jani Aarnio / Yle

The volume of housing loans in October was about one-third less than the same month last year, according to the Bank of Finland.

New housing loan drawdowns totalled around 1.3 billion euros last month.

The last time housing loan drawdowns were at such a low level was in 2004, the central bank said.

Nearly 93 percent of the new drawdowns were for owner-occupied housing loans, while just over seven percent of the loans were for investment properties.

The central bank noted that the average interest rate on investment property loans (3.34%) was slightly higher than on owner-occupied housing loans (3.07%).

It also reported that housing loan-related problems among banks have remained moderate, "despite the pandemic, the energy crisis and rising interest rates."

Falling prices

Meanwhile, prices for old stock apartments fell in various parts of the country in October, according to fresh figures published on Wednesday by Statistics Finland.

The agency reported that prices dropped by 1.9 percent in October, year-on-year, and declined by 0.6 percent compared to September.

Prices tended to drop more in larger cities, however price increases were noted in the cities of Oulu and Espoo, according to the number-crunching agency.

Preliminary data also showed that prices in Finland's six largest cities dropped by 2.5 percent in October, year-on-year. While in the capital area, the price decrease was 3.3 percent.

The cities of Vantaa and Helsinki saw the biggest decrease in prices during October, compared to the same month a year ago.

Earlier this week the statistics agency reported that old stock apartment prices in the capital area had previously seen declines during July-September, with a 2.9 percent drop compared to the previous quarter. Meanwhile, during Q3, prices fell by 0.8 percent in the capital region and by 1.5 percent in Helsinki, year-on-year.

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