@Sijoittaja-alokas’s linked presentation included a good simplified illustration from the company on the impact of share buybacks in the real estate sector. In practice, currently, when buying its own shares, the company is buying its own apartments below their book value. Simple, yet beautiful. Once we reach larger volumes and get proof of the marketability of Finland’s housing stock, the equation looks excellent.
Here is also a link to the Real Estate Evening panel discussion. The themes of the housing sector included, among others:
- Why has Finland’s housing price development still been the weakest in all of Europe, even though interest rates have been falling for quite some time now and our interest rates are variable?
- Finland’s housing benefit system has been very generous, but now the support system has already been clearly tightened. How much has the Finnish housing market relied on the generous support system, and will these deteriorations cause long-lasting weak development on top of the already observed weak development?
- How and when will the oversupply of rental apartments in the Helsinki metropolitan area be resolved?
- Why does Finnish capital seem to be largely absent from the real estate market, even though one might imagine it’s currently quite a good buyer’s market?
