Finland’s housing market weakened in March as total transactions fell by more than 14 per cent compared with a year earlier, according to new data from the Finnish Real Estate Federation.

A total of 4,311 housing transactions were recorded nationwide, including 4,222 sales of existing homes and only 89 new-build deals.

The decline reflects a broad slowdown across the market, with activity in new housing remaining low.

Sales of new homes dropped by more than half from the previous year, while transactions in existing homes fell by 12.6 per cent.

Chief executive Tuomas Viljamaa said the market remained subdued. “The total number of transactions fell by about 14 per cent nationwide in March,” he stated.

The downturn extended across most regions, with only Kainuu recording an increase in sales compared with March last year. Among major cities, only Kuopio has seen growth in transactions during the first quarter of the year.

The sharpest declines were reported in Oulu, Tampere and Lahti.

House prices continued to fall in the Helsinki metropolitan area, where supply has increased. Viljamaa said the number of homes available for sale and rent has reached high levels, with additional vacant right-of-occupancy housing adding to supply.

“Prices have continued to decline in the capital region,” he said, pointing to the imbalance between supply and demand.

Across the rest of Finland, price levels have shown signs of stabilisation. Data shows that average prices for existing flats in the capital region fell by 1.7 per cent compared with February and by nearly 5 per cent year-on-year.

The market has also become divided by property type. Prices for larger family homes have remained stable, while smaller apartments have recorded clear declines.

Viljamaa said demand is focused on family-sized housing, while supply is concentrated in smaller units. This mismatch has weighed on overall price development.

Transaction data shows that apartment blocks accounted for more than half of existing home sales in March, with 2,221 deals. Row houses and semi-detached homes made up 1,072 transactions, while 929 detached houses were sold.

In the capital region, 995 existing homes changed hands, representing 23.6 per cent of all transactions nationwide. Helsinki recorded 624 sales, followed by Espoo with 223.

Sales times have shortened compared with earlier in the year. The average time to sell flats in the capital region fell to 114 days, while detached house sales times dropped to 134 days, a decrease of 40 days from February.

Despite faster sales, overall activity remains low. The report notes that transaction volumes in March were more than 25 per cent below the five-year average.

For the first quarter, 11,654 existing homes were sold, down 9.1 per cent from the same period last year. New-build sales totalled 281 units, a decline of more than one third.

Viljamaa said further measures are needed to revive the market and restore confidence among buyers. He pointed to financing reforms such as longer mortgage terms and changes to first-time buyer schemes, but said additional action is required.

“The housing market must be restarted so that construction and the wider property sector can recover,” he said.

The federation has called for policy changes to support demand, including adjustments to transaction taxes and incentives for first-time buyers.

HT