Scarce supply meets brisk demand

Ginesta Immobilien AG recently published the 2021 market reports for the Upper Engadin municipalities of St. Moritz, Pontresina, Celerina and Samedan. There are differences between the individual municipalities in terms of the sales prices achieved, but what they all have in common is that the supply of properties on the second-home market is tight. This short supply is meeting with brisk demand, especially from Swiss buyers, which in turn is causing prices to rise. Prices that are already close to their pre-2012 highs. This is particularly pronounced in St. Moritz, where the highest prices are being paid in the canton and in some cases throughout Switzerland. Upmarket condominiums are going for up to CHF 20,000 per square meter of gross floor area (GFA), luxurious properties are fetching up to CHF 26,000 and rarities are sometimes even more expensive. However, the location has to be right. Prices are already lower in the Bad district and, according to Ginesta, 20 percent less is paid in the neighboring district of Champfèr and the neighboring municipality of Silvaplana.

Top prices on the Suvretta slope

The few single-family homes that come onto the market are particularly sought-after in St. Moritz. A good locationcombined with a luxurious extensiongoes for 30,000 francs and more perm2 GFA, and on the Suvretta slope, oneof the most popular villa areas inSwitzerland, prices can be as high as 65,000francs.According to Ginesta Immobilien, the St. Moritz second home market is in very goodshape. After a correction phaseto 2018, transaction pricesfor single-family homes are rising again,with a stronger upward trend in thelast few quarters. Prices for condominiums stabilized from2018 and are currently showing a noticeable upward trend. Prices in this segment are now only five percent below the previous record levels.

Vacation apartments for rent in demand

In terms of sales prices, the two neighboring municipalities of Pontresina and Celerina are already unable to keep up with St. Moritz. Forluxury condominiums, the average selling prices in Pontresina and Celerina are18,000 francs, for luxury properties25,000 francs. Somewhat more is paid for detached houses. In Celerina, however, these are not coming onto the market at all. The supply ratio (number of properties on offer in relation to existing properties) is zero, while in Pontresina it has risen slightly year-on-year to 4.5 percent. The supply ratios for condominiums are 4.1 percent (St. Moritz), 4.6 percent (Pontresina) and 3.1 percent (Celerina). For Ginesta Immobilien, markets with a supply rate of six to eight percent are intact and efficient. The Real Estate company is observing high demand for rental apartments as vacation homes in all three municipalities.  

Strong correction in Samedan

This also applies to the municipality of Samedan. At 2.2 percent, the supply rate is even lower than in the neighboring municipalities ofand lower than it has been formany years, which suggests ahigh demand for rental properties forvacation purposes. As a town center with a variety of functions, Samedan has an above-average number of rental apartments for locals. This is also reflectedin the sales prices for condominiums and single-family homes, which are up to a quarter lower than in the more touristyneighboring municipalities. While prices for single-family homes in Samedan have been rising again since 2017 and are close to their highs, the market for condominiums has undergone a correction from which it has not yet recovered. Since 2012, prices have fallen by around a quarter and have now been trending sideways for several months. A slight upward trend is expected in the coming months. 

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