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Residential property prices in Switzerland experienced varied trends in the first half of 2024. While condominium prices increased, single-family homes became more affordable during

this period.

According to a report from mortgage broker Moneypark and Zurich-based real estate data startup Pricehubble, condominium prices rose by an average of 0.5% across Switzerland in the first half of the year. In contrast, prices for single-family homes dropped by 2.2%.

Compared to a year ago, prices for both categories saw a 1.9% increase.

Regionally, the decline in detached house prices was more pronounced in French-speaking Switzerland (-4.0%) than in German-speaking Switzerland (-1.3%). Owner-occupied apartment prices rose in German-speaking Switzerland (+0.6%) but slightly decreased in French-speaking Switzerland (-0.2%).

Saron Mortgages Lose Popularity

The report also highlighted a significant shift in financing preferences among homeowners. The volume of Saron mortgages taken out fell by 58% compared to the second half of 2023. Despite two key interest rate cuts by the Swiss National Bank (SNB) in the first half of the year, these mortgages lost their appeal. The share of money market mortgages in all mortgages granted dropped from 19% to 8%.

Fixed-rate mortgages with terms of up to 10 years have become cheaper since October 2023, capturing market share from Saron products. Over a third of the mortgages concluded in the first half of the year were for terms between 5 and 9 years and 10 or more years. Additionally, short-term fixed-rate mortgages with terms of 1 to 4 years achieved a record market share of 15%.

Market Dynamics Among Mortgage Providers

Moneypark and Pricehubble observed that cantonal banks particularly benefited from Credit Suisse’s recent difficulties. These banks increased their margins and did not offer the most competitive conditions in the market during the first half of the year. Consequently, the mortgage volume brokered by Moneypark shifted significantly in favor of insurance companies and pension funds.