Preliminary data from Statistics Finland and figures from three real estate companies show that the number of property sales fell during May-June.
The Central Federation of Finnish Real Estate Agencies, which represents 80 percent of the country's real estate agents, says the number of sales decreased 10 percent in June compared with the same period last year, while property firm Huoneistokeskus says it saw an eight percent fall in sales. Meanwhile, Kiinteistömaailma also reported weaker sales of ”a few percent” in July.
According to Remax chief executive Pasi Aalto, the sales of flats in apartment buildings fell the most, whereas the demand for single-family homes and holiday houses grew.
"Property investors have become more cautious, which is reflected in the number of sales," Aalto says.
Historically, the early summer months were busy in the real estate market.
No rush to benefit from lower contribution threshold
What's more, new rules requiring borrowers to finance at least 15 percent of the mortgage amount by themselves took effect at the beginning of July.
Therefore, real estate experts anticipated record high sales in June as buyers scrambled to take advantage of the outgoing 10-percent threshold.
In addition, Finland’s economy is performing well at the moment, employment figures are up and interest rates remain low.
"We expected at the start of this year that sales would increase," says Erkki Heikkinen, chief executive of real estate firm Kiinteistömaailma.
"A slowdown in the market is a surprise to us and we cannot point out any specific issue that should hold back property sales. This remains inexplicable to us," Heikkinen adds.
Despite the slump in sales, OP Group's chief economist Reijo Heiskanen says he does not believe there has been a great shift in the market.
"Two months is too short a time to draw any conclusions," he says.
"In general, the economic environment is very positive. So far, demand has focused on small apartments in city centres, but I would expect it to spread to other types of properties too," Heiskanen says.