English Forum Switzerland

English Forum Switzerland (https://www.englishforum.ch/forum.php)
-   Housing in general (https://www.englishforum.ch/housing-general/)
-   -   housing bubble?? (https://www.englishforum.ch/housing-general/305749-housing-bubble.html)

willance 09.09.2021 13:02

housing bubble??
 
Did anyone notice that the housing bubble seems to be getting bigger and bigger? I visited a house costed 650,000 CHF 3 years ago, and last week I found its price was 1,250,000, almost double!! The average price was between 5000-7000 per m2 when I tried to buy a house 3 years ago, but now the price is about 8000-10000 per m2....I am living around Aarau. Crazy market!

NotAllThere 09.09.2021 13:47

Re: housing bubble??
 
According to this, https://realadvisor.ch/en/property-prices/canton-aargau
the most expensive area around Aarau is Biberstein at 9,032 francs per square metre for an apartment and 7,069 francs for a house.

Axa 09.09.2021 13:57

Re: housing bubble??
 
Some improvements while the house was on sale? New roof, new heating, the antisocial neighbor that scared potential buyers passed away, a new 3 car covered parking?

Phil_MCR 09.09.2021 14:13

Re: housing bubble??
 
better buy now before it doubles again!

smileygreebins 09.09.2021 14:37

Re: housing bubble??
 
10 years ago I was advised by many that Switzerland was experiencing a housing bubble that was coming to a rapid end. I've heard it every single year since. Judging by the construction cranes operating throughout Kantons Schwyz, Zug, Zurich, Lucern, Basel, Aargau and Bern, I just don't know when or if the "bubble" is ever going to ease/burst!

Uaby 09.09.2021 17:25

Re: housing bubble??
 
A consequence of ultra loose monetary policy. Btw, it is not only Switzerland but pretty much across the developed world from New York to Sydney.

logo123 09.09.2021 18:06

Re: housing bubble??
 
Another way to look at it.
Open, inhabitable space in Switzerland is not a lot.
Population is increasing. CHF remains very strong. Interest rates remain low. Most of the property is owned by Pension Funds and Banks who have tremendous appetite to sustains rates unlike people owned properties. And finally Corona made people realise that they needed more space and could work from home so don't need to be living in small spaces in the big cities.
when I came to Switzerland, I was told this was a bubble. Ten years down, the Bubble has become bubblier....LoL

minimimi 09.09.2021 21:14

Re: housing bubble??
 
Quote:

Originally Posted by logo123 (Post 3346530)
Another way to look at it.
Open, inhabitable space in Switzerland is not a lot.
Population is increasing. CHF remains very strong. Interest rates remain low. Most of the property is owned by Pension Funds and Banks who have tremendous appetite to sustains rates unlike people owned properties. And finally Corona made people realise that they needed more space and could work from home so don't need to be living in small spaces in the big cities.
when I came to Switzerland, I was told this was a bubble. Ten years down, the Bubble has become bubblier....LoL

They are building more floors, a lot of place up there :D

but I do agree with you, demand is likely to continue. Unless something unforeseen happens. E.g. if 99% is to pass (highly unlikely imo) I am pretty sure most of high earners who can move out of Switzerland will do so. and at least a higher segment of the apartments would be affected...

Edit: As I have a feeling the comment is misunderstood to an extent: I am just pointing that legal, political changes might lead to significant changes. No way to protect ourselves though, can happen anytime, anywhere. It was just a semi-joke remark. In the possible event of RE prices dropping (maybe 50% chance) I guess it is much more likely to be caused by something else, even global, than my example.

otec 09.09.2021 21:20

Re: housing bubble??
 
Quote:

Originally Posted by Phil_MCR (Post 3346401)
better buy now before it doubles again!

same advise for Sam ALTs

amogles 09.09.2021 22:06

Re: housing bubble??
 
Quote:

Originally Posted by Axa (Post 3346393)
Some improvements while the house was on sale? New roof, new heating, the antisocial neighbor that scared potential buyers passed away, a new 3 car covered parking?

A brown sugar quarry discovered in the back garden .

amogles 09.09.2021 22:09

Re: housing bubble??
 
Quote:

Originally Posted by logo123 (Post 3346530)
Another way to look at it.
Open, inhabitable space in Switzerland is not a lot.
Population is increasing. CHF remains very strong. Interest rates remain low. Most of the property is owned by Pension Funds and Banks who have tremendous appetite to sustains rates unlike people owned properties. And finally Corona made people realise that they needed more space and could work from home so don't need to be living in small spaces in the big cities.
when I came to Switzerland, I was told this was a bubble. Ten years down, the Bubble has become bubblier....LoL

In my case the work from home thing has made me realize I don’t even need to work from Switzerland so I’m in a country where I can go to any restaurant I want .

I think that within Switzerland people will move to cheaper areas because being close to the office no longer matters as much and this will slow down the price escalation in expensive areas .

Humanoid 09.09.2021 22:15

Re: housing bubble??
 
Quote:

Originally Posted by minimimi (Post 3346586)
E.g. if 99% is to pass (highly unlikely imo) I am pretty sure most of high earners who can move out of Switzerland will do so. (p.s. I mean high salary earners, not the rich, non-salary people) and at least a higher segment of the apartments would be affected...

What makes you think that high earners will move out?

All the demographic projections I have seen predict a steady and significant population growth in the next 30 years in Switzerland. The mark of 10 million inhabitants should be reached well before 2050.

amogles 09.09.2021 22:19

Re: housing bubble??
 
Quote:

Originally Posted by willance (Post 3346359)
Did anyone notice that the housing bubble seems to be getting bigger and bigger? I visited a house costed 650,000 CHF 3 years ago, and last week I found its price was 1,250,000, almost double!! The average price was between 5000-7000 per m2 when I tried to buy a house 3 years ago, but now the price is about 8000-10000 per m2....I am living around Aarau. Crazy market!

I could point you to plenty of stocks that have seen crazy hikes in the last three years without the companies behind them having improved their balance sheet significantly . It’s the market . It’s the availability of cheap capital and lack of alternative venues for investment . It’s also partially an artifact of effects elsewhere in the market and displacement of money . Possibly a small part of it is also hidden inflation .

st2lemans 09.09.2021 22:35

Re: housing bubble??
 
Quote:

Originally Posted by minimimi (Post 3346586)
if 99% is to pass (highly unlikely imo) I am pretty sure most of high earners who can move out of Switzerland will do so. (p.s. I mean high salary earners, not the rich, non-salary people) and at least a higher segment of the apartments would be affected...

Therefore, we will vote "yes"!

And where will they move, India? Seems they've already tried that.

Anyway, very few people can work from home in efficient manner except in a few industries.

Tom

minimimi 09.09.2021 22:49

Re: housing bubble??
 
Quote:

Originally Posted by Humanoid (Post 3346616)
What makes you think that high earners will move out?

I would consider.

Actually this initiative made me realise there's not much bonding me to Switzerland. Sure it has ups but can imagine a number of countries to move to.

Also to add: Covid is also one of the reasons for my thinking. Switzerland used to be close to everywhere for travel but now I wouldn't like to be stuck in a country with no family if there's again travel restriction.

amogles 09.09.2021 22:53

Re: housing bubble??
 
Quote:

Originally Posted by minimimi (Post 3346627)
I most likely would. It would make our total tax above 50%. And our income is independent of Switzerland and know quite of people in similar shoes.

Actually this initiative made me realise there's not much bonding me to Switzerland and how easy it would be to make the decision.

On the contrary . The initiative stands little chance of passing .

But it is important to have these debates nevertheless as that is how a healthy democracy works

st2lemans 09.09.2021 22:54

Re: housing bubble??
 
Quote:

Originally Posted by minimimi (Post 3346627)
I most likely would. It would make our total tax above 50%. And our income is independent of Switzerland and know quite of people in similar shoes.

Actually this initiative made me realise there's not much bonding me to Switzerland and how easy it would be to make the decision. Sure it has ups but can imagine a number of countries to move to. Even UK would be way less tax.

Goodbye and good riddance then!

Tom

NotAllThere 09.09.2021 23:16

Re: housing bubble??
 
Quote:

Originally Posted by amogles (Post 3346610)
In my case the work from home thing has made me realize I donít even need to work from Switzerland so Iím in a country where I can go to any restaurant I want .

What, not even requiring a tie? What kind of low dives do you go to? :eek:

Humanoid 09.09.2021 23:25

Re: housing bubble??
 
Quote:

Originally Posted by minimimi (Post 3346627)
I most likely would. It would make our total tax above 50%. And our income is independent of Switzerland and know quite of people in similar shoes.

Actually this initiative made me realise there's not much bonding me to Switzerland and how easy it would be to make the decision. Sure it has ups but can imagine a number of countries to move to. Even UK would be way less tax.

Also to add: Covid is also one of the reasons for my thinking. Switzerland used to be close to everywhere for travel but now I wouldn't like to be stuck in a country with no family if there's again travel restriction.

I appear to be ignorant on the topic, but what exactly is this initiative you are mentioning?

minimimi 09.09.2021 23:35

Re: housing bubble??
 
Quote:

Originally Posted by Humanoid (Post 3346647)
I appear to be ignorant on the topic, but what exactly is this initiative you are mentioning?

https://99prozent.ch/


All times are GMT +2. The time now is 21:34.

Powered by vBulletin® Version 3.8.4
Copyright ©2000 - 2022, Jelsoft Enterprises Ltd.
LinkBacks Enabled by vBSEO 3.1.0