Swiss residential property prices have continued to rise in the third quarter, with a year-over-year increase of 1.7 percent and a 0.5 percent increase since mid-year. This growth has been driven by lower mortgage rates and the expectation of further cuts by the Swiss National Bank, which has increased demand in the market.
In terms of property types, condominium prices increased by 0.7 percent, slightly higher than the 0.3 percent increase for single-family homes. The price growth for single-family homes was driven by large urban areas and medium-sized municipalities, which saw a 0.7 percent increase. However, intermediate municipalities experienced a slight decline of 0.1 percent.
In the condominium sector, medium-sized urban municipalities saw the largest price increase at 2.0 percent, while rural areas experienced a decline of 1.9 percent. As of September, the Swiss Residential Property Price Index reached 118.2 points, with a baseline set at 100 in Q4 2019, indicating a strong market despite regional variations.