Swiss Real Estate Market Remains Vulnerable, Central Banker Says
- Residential property prices have rallied to highest on record
- SNB vice president reaffirms more rate hikes can’t be excluded
Residential apartment buildings in Geneva, Switzerland.
Photographer: Jose Cendon/BloombergThis article is for subscribers only.
Price dynamics in Switzerland’s residential-property sector are slowing in the wake of higher interest rates but the market remains vulnerable, according to Swiss National Bank Vice President Martin Schlegel.
While increased borrowing costs are reining in price growth, they are also pushing up rents as landlords are allowed to pass on part of higher mortgage expenses to tenants. This could lead to a temporary uptick in inflation, Schlegel said Friday in Lausanne.