Property prices in Estonia rose both year-on-year (y-o-y) to Q1 2019, and when compared with Q4 2018, Statistics Estonia reports. The rises affected houses in particular, and were seen across two different indices, the Dwelling Price Index and the Owner-Occupied Housing Price Index. Only in Tallinn was a very small drop seen, and this solely with apartments, between Q4 2018 and Q1 2019.
Dwelling Price Index
The Dwelling Price Index increased by 5.9 percent y-o-y in Q1 2019, according to Statistics Estonia, continuing an upward trend for the past nine years. House prices in particular rose.
The Dwelling Price Index expresses the changes in square meter prices of transactions made by households for the purchase of dwellings. The Dwelling Price Indices cover both apartments and houses (detached, semi-detached and terraced houses).
Prices of apartments increased by 4.9 percent and the prices of houses by 8.4 percent y-o-y in Q1 2019. Apartment prices in Tallinn and environs, as well as Tartu and Pärnu, rose by around 4 percent over the same period.
The rest of Estonia outside these three main population centers saw an even bigger rise, at 12 percent y-o-y to Q1 2019.
The increase of the Dwelling Price Index on the previous quarter in Q1 2019 was 1.7 percent.
The breakdown between apartments and houses over this time period was 1.1 percent and 3.1 percent increases respectively.
Apartment prices in Tallinn actually fell slightly between Q4 2018 and Q1 2019, by 0.3 percent, but increased by close to 4 percent just outside Tallinn, as well as in Tartu and Pärnu, and by 3 percent in the rest of Estonia.
Owner-Occupied Housing Price Index
The Owner-Occupied Housing Price Index rose by 3.3 per cent y-o-y in Q1 2019. The rise compared with Q4 2018 was even higher, at 3.3 percent.
The Owner-Occupied Housing Price Index expresses the changes in the prices of the acquisition of dwellings new to the household sector and other goods and services that households purchase in their role as owner-occupiers. The index consists of four parts: the acquisition of dwellings, other services related to the acquisition of dwellings, major repairs and maintenance, and insurance connected with dwellings.
The Owner-Occupied Housing Price Index time series begins at Q1 2005; major repairs and maintenance were included from the Q1 2007 and insurance connected with dwellings from Q1 2012.
Statistics Estonia is a government agency under the aegis of the Ministry of Finance, and provides public institutions, business and research circles, international organizations and individuals with reliable and objective information on the economic, demographic, social and environmental situation and trends in Estonia.
Editor: Andrew Whyte