Swiss households' real estate assets, now more transparent

Zurich, Switzerland (GenevaLunch) – The net worth of Swiss households fell in 2008 from an average of CHF334,000 per capita to CHF312,000. About CHF200,000 of this is real estate and claims against insurance and pension plans. The drop in assets, the first since 2002, was due to sharp falls in stock market values. It would have been worse but for higher real estate values, which provided something of a safety net. Real estate assets, CHF1,315 billion in total, accounted for 43 percent of all household assets at the end of 2008, up from 39 percent the previous year.

Real estate prices climbed in 2008

The total value of households’ real estate rose by CHF73 billion in 2008.

The figures were released by the Swiss National Bank (SNB) Friday 20 November, as part of the national financial accounts. This is the first year that assets include households’ real estate. The report notes that:

“financial assets held by households declined by CHF199 billion (10.4%) to CHF1,718 billion, while assets held in real estate increased by CHF73 billion (5.9%) to CHF1,315 billion. Liabilities rose by CHF15 billion (2.4%) to CHF629 billion. As a result of these developments, households’ net worth fell by CHF 141 billion (5.5%) to CHF2,403 billion.”

Source: SNB 11/2009

Switzerland has a population of a little over 7.7 million people.

Stock market prices tumbled in 2008

Stock market values fell by CHF84 billion for Swiss households in 2008. In addition, the value of collective investment schemes fell, by about one-third, to CHF161 billion.

The traditionally financially conservative Swiss reacted by turning to savings, increasing their deposits with banks by CHF25 million in 2008.

Liabilities: mortgages are the bulk

Nearly 90 percent all Swiss households’ liabilities take the form of mortgages, the SNB reports, and in 2008 mortgage loans rose by CHF16 billion to CHF581b. The rise was nevertheless smaller than the increase in real estate values.

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