Doctoral dissertation: Helsinki’s housing market favours the buyer: average benefit from an old flat EUR 5,900


Buyers benefit more than sellers, especially when it comes to large flat sales.

Sami Pakarinen's dissertation does not necessarily provide information on the buildings in the picture.

In Helsinki’s housing market, the buyers are in a more favourable position than the sellers. In Sami Pakarinen’s doctoral dissertation, the buyers’ benefit in relation to the estimated market price was most notable when the sales concerned large apartments.

In 2011–2012, nearly 3,500 apartment sales were conducted in Helsinki, and the value of the sales totalled over EUR 770 million. Eight percent of this sum, or EUR 64 million, favours the buyers or sellers ineffectively.

‘The research results provide novel information on the pricing and market position of Helsinki’s apartment sales. I find it interesting that according to the statistical model, the sellers could ask for even higher prices, especially for the value apartments in the city centre’, Pakarinen states.

However, there are differences between different market areas and apartment types. The estimated inefficiency varied from 4 to 13 percent between different areas of cities. Particularly in the Helsinki-2 area consisting of the districts of Kallio, Vallila and Sörnäinen, the sellers sold small apartments for higher prices than could be expected considering the apartments’ features.

‘Investors’ interest in small apartments manifested as willingness to pay higher prices particularly in these areas. The research material comprises data from 2011–2012, but the demand for small apartments was already great in the Helsinki-2 area. This could be explained by the new decrease of interest rates’, Pakarinen explains.

‘Since then, the investor demand has kept increasing, especially for new apartments. From this point of view, the research’s new approach to housing market operation is particularly timely and interesting.’

Sami Pakarinen’s dissertation ”Semiparametric efficiency analysis of housing markets” will be examined at Aalto University School of Business on 16 March. 

Dissertation (

Further information:
Sami Pakarinen
tel. +358 50 343 4337