Market heats up for land for small houses in Helsinki metropolitan region

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The market for land for the construction of single-family houses is heating up in the Helsinki region. The rate of the increase in prices of plots for small houses nearly doubled in the period between January and September this year. The average rise was nearly 19%.
      The sharpest increases were in Espoo, where land cost 28% more than a year ago, and even in Vantaa heavy demand boosted prices by about 20%. In Helsinki, where the price of land is already the highest in the region, the increase was slower.
     
In Helsinki, prices for land for small houses have averaged nearly EUR 700 per square metre of living space. In Espoo the corresponding figure is EUR 620, and in Vantaa EUR 400.
      The nominal price increase during the past five years has been EUR 250 per square metre in Helsinki, EUR 320 in Espoo, EUR 190 in Vantaa, and EUR 260 in Kauniainen.
      "The figures reveal that the shortage of land for housing construction has become a real disease. There is a total disparity between demand and supply. The patient's fever has exceeded 40 degrees Celsius, and efficient treatments are needed to prevent the disease from becoming chronic", says Hannu Penttilä, head of cooperation issues at the Helsinki Metropolitan Area Council (YTV).
      Solutions that he offers include opening more areas to housing construction. One of these areas is the Malmi Airport in northeastern Helsinki.


Previously in HS International Edition:
  Helsinki to evict planes from Malmi Airport (9.12.2004)

Helsingin Sanomat