Real Estate Brokerage 2010 / Kiinteistönvälitys 2010 in Helsinki was a success

Central Federation of Real Estate Agencies KVKL (Kiinteistönvälitysalan Keskusliitto) organized for the first time an international conference in order to view globally the status of Real Estate Agents business.  The event in March in Helsinki was a success.

The main international speakers at that event were CEPI's CEO, Mr Xavier Ortegat from Belgium, Director and “super-networker” Mr Kirkor Ajderhanyan from France and KVKL ‘s delegate to NAR, real estate professional Mr Howard J. Leino from USA.

Finland’s own experts were also represented in the highest top-level lead by Mr Jan Vapaavuori, the Minister of Housing Finland.

“The experience of this event was encouraging.  The future of the brokerage was highlighted by a wide scope. Many senior part-takers thanked the contents of the event and they wanted to emphasize, that this was the best seminar arranged ever in the history of brokerage and association-business in Finland”,  said Mr Jukka Malila, the CEO of KVKL.

The organization is very happy after receiving the encouraging feedback and has now plans to build a new, even better event for the year 2011.

Helsinki, 29 March 2010

Prices in housing market in Finland soared  in 2009

According to the advance information of Statistics Finland, people paid almost eight per cent more for old apartments and row house apartments at the end of 2009 than at the end of 2008.

The price increase was strongest in the metropolitan area where apartment prices have always been higher.
Prices for old apartments in the metropolitan area grew over ten per cent.

Helsinki is number one in the price rally with an increase of 11.6 per cent, but prices have climbed over ten per cent also in Espoo and Kauniainen. In Vantaa, which also is a part of the metropolitan area, the increase was a more moderate six per cent.

“The price increase did not concern only old apartments. Also new apartments and row house apartments were sold at a noticeably higher price than a year earlier.  Prices for new apartments grew by 3.5 per cent in the entire country and nine per cent in the metropolitan area.”
“The growth started already in the spring 2009 but it became stronger towards the end of the year. At the end of 2009 many of KVKL’s member agencies reported some of the best sales results in their history.”

“Part of the growth in Finland is about rebounding from the quieter housing transaction phase between 2008 and 2009 and on the other hand it is about shortage of supply. What contributes to the housing trade and its recovery, is the historically low interest rates and a strong migration to cities”, comments the CEO and Managing Director of the Central Federation of Finnish Real Estate Agencies KVKL, Mr Jukka Malila.

The housing trade reached very remarkable standstill when the economic crisis hit in the autumn of 2008. Sale of new apartments dropped already in the summer 2008 and it hit rock bottom in the autumn 2008. There were hundreds of new apartments that construction companies were not able to sell.

No one knew at the beginning of 2009 where the world would turn. This was reflected in the housing trade which continued to be faint. Only those who had to buy an apartment were buying – there were no “excess” transactions happening.

With the spring 2009 the trade started to recover. Apartment prices were quite low and especially first-time home buyers and also apartment investors came back to the market.

In the autumn of 2009 the revival led to shortage of supply. For example the number of apartments for sale on the housing website Oikotie.fi came down by more than ten thousand units. Also construction of new apartments stood still and interest rates were historically low.

Many people who had put their purchasing intentions on hold because of the economic crisis dared to enter the market again in 2009. This is when demand exceeded supply.

“Now that we have lived through these transitions, we can state that years 2008 and 2009 were each other’s opposites when it comes to housing transactions. In the beginning of 2008 apartment prices were at their peak but then in the autumn prices fell and transactions plummeted. In the beginning of 2009 prices remained low and transactions were few, then in the autumn both the prices and transactions picked up again.”

Throughout the year 2009 apartment prices remained the same as in 2008. The average price per square meter for an apartment was EUR2086 in the entire country and EUR3132 in the metropolitan area.

2009, the year of recession, when tens of thousands of people became unemployed and GNP fell about seven per cent, will be written in history as the year when apartment prices DID NOT decrease according to many expectations.
“It looks like consumer trust in the economy in Finland has been channeled into housing market during the last few months”, says Malila.

Malila does not think that the climb of apartment prices will continue this year as steeply as it did at the end of last year. But some risks of active, “extrapositive development” do exist in Finland. “If the circumstances will remain as they are now, price increase will show especially in the growth centers. In other parts of the country the development will probably be steadier. At the moment demand exceeds supply generally in all the biggest cities in the country. That has unevitably some effects to the market.”

“Lack of construction and shortage of apartments are problems in Finnish housing-market at the moment.  The dynamics of the market will be affected also by the rebounding of construction and the interest rates that are slowly picking up”, states Malila.
 

Helsinki, 22 February 2010

Jukka Malila
Managing Director, CEO
Central Federation of Finnish Real Estate Agencies KVKL
tel. +358-50-5112100
jukka.malilvkl.fi
www.kvkl.fi

 

KVKL and French FNAIM start cooperation

The Central Federation of Finnish Real Estate Agencies KVKL and FNAIM, an organization that represents French real estate agents, have made a cooperation agreement. The purpose of the agreement is to promote the development of cooperation and business contacts between the two organizations and their members.

The President of FNAIM, Mr René Pallincourt, and the CEO and Managing Director of KVKL, Mr Jukka Malila, signed the agreement at the beginning of last week. “France is an interesting country especially for Finns, who look for high-quality options for example for holiday housing. I am certain that our cooperation will increase encounters between demand and supply”, Mr Malila describes the significance of the contract.
 
A group of Finnish realtors was the first party to enjoy the fruits of the cooperation agreement as they travelled to France at the end of last week. Mr Kirkor Ajderhanyan, the President of the international committee and an opinion leader of FNAIM’s international operations, will teach the group to recognize the new possibilities that have opened through the cooperation agreement.

An international conference, the first of its kind with participants from 29 countries, ended in Paris. One of the most remarkable decisions that was made in the occasion was the founding of an international real estate brokerage group called Think Tank. The group will concentrate its contribution to such areas that are at the moment somewhat neglected by current organizations. The founders of the group have evaluated that one of these areas is for example communication.

Helsinki, 14 December 2009


Jukka Malila
Managing Director,  CEO
Central Federation of Finnish Real Estate Agencies KVKL
tel: +358-50-5112100
e-mail: jukka.malilvkl.fi
www.kvkl.fi
www.hyvavalitystapa.fi


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KVKL joins the European real estate brokerage industry’s decision-makers
 

The European Property Agents Group EPAG chose Mr Jukka Malila, the CEO and Managing Director of The Central Federation of Finnish Real Estate Agencies KVKL, as a member of EPAG’s Board of Directors in its annual general meeting in Luxembourg at the end of November.

To be able to follow and influence the international development of the industry demands that Finnish estate brokerage industry creates a steady footing for itself among other European decision-makers. “As a member of the Board I want to influence especially on developing higher-quality expertise, education and statistics-compiling throughout Europe”, Mr Malila described his thoughts of his new position of trust.

The goal of EPAG is to create common rules for real estate brokerage industry in Europe together with its partners. Another important aim is to develop common education systems and expertise that exceed country borders.

Together with ICREA and other partners EPAG decided in the annual general meeting in Luxembourg to create a portal that markets European holiday homes to EPAG’s members. The portal will be found at www.worldproperties.eu when it is first created.

Finland is part of European development

EPAG and the whole real estate brokerage industry are part of European development.  The legislation and regulations in EU concern real estate industry even more than before. A good example of the development that happens in our operational environment is the directives that regulate energy consumption of buildings. Increasing energy efficiency is a big challenge in Europe during the next decade.

Reaching the climate and energy goals that the Finnish Government has stated require that energy consumption in buildings has to be decreased by 60 per cent by year 2050. In the near future and upcoming decades the organizations that operate in real estate industry are one of the most important groups to influence the matters that will help us reach the aims.

The European Council of Real Estate Professions CEPI represents over 200,000 real estate professionals. CEPI consists of two organizations, the European Confederation of Property Managers CEAB and the European Property Agents Group EPAG.

CEPI has more than 40 organizations in 27 countries as its members, including EU Member States and countries like Norway, Switzerland, Turkey, and Russia. CEPI is based in Brussels, Belgium. In Finland, CEPI’s member organizations are The Central Federation of Finnish Real Estate Agencies KVKL and the Finnish Real Estate Management Federation.

Helsinki, 14 December 2009


Jukka Malila
Managing Director,  CEO
Central Federation of Finnish Real Estate Agencies KVKL
tel: +358-50-5112100
e-mail: jukka.malilvkl.fi
www.kvkl.fi
www.hyvavalitystapa.fi
_______________________________________________________________________________________


Copy of an information-letter from KVKL to CEPI-network :

”The vision of education 2010s/Real Estate Agents/Finland”

Dear friends in CEPI-network, 

I have the pleasure of informing you of the latest draft-visions made by KVKL within
the field of education of real estate agents in Finland.

Our strategy of 2010s is to bring the profession of this industry to the highest
top-level  seen from  European and also from global perspectives.

One fundament in this scope is the CEPI/EPAG European minimimun educational
requirements for the real estate agents.

The coming years will show, how we will succeed in this process. One fact is sure:
the comments to the draft-vision have been very positive in the national level
(=from professionals to authorities, ministries etc.) although it is generally
known, that there is still much to do to create all the concrete projects, that will
bring us the results.

To visualize this context, I attach the draft-picture, which is for your
information.  I wish you to note, that the copyright of the material is held by
below mentioned person.

Helsinki, 21 October 2009

Best regards

Jukka Malila
Toimitusjohtaja, Managing Director,  CEO
Kiinteistönvälitysalan Keskusliitto ry/
Central Federation of Finnish Real Estate Agencies KVKL
Runeberginkatu 5 B,
00100 HELSINKI
Finland
tel: +358-50-5112100
e-mail: jukka.malilvkl.fi

www.kvkl.fi

www.hyvavalitystapa.fi
 

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Finnish Housing Market: current status (October 2009)

KVKL’s answer to NAR

The National Association of Realtors (NAR) has asked KVKL, how KVKL sees the recent
situation in housing market in Finland in October 2009. Hereby KVKL’s short answer:

The impact of the financial crisis was felt later in the Nordic countries than for
example in the rest of Europe. However falls in prices were recorded in 2008.

The year 2008 in the Finnish housing market was characterized by abrupt change. Up
until April 2008, the volume of sales remained record-high and housing prices
peaked. While the transition to the summer holiday season was still quite normal,
there was a feeling of dread among market participants in anticipation of when the
problems besetting the US housing market would hit Finland as they had affected so
many other western European countries. In September and October 2008 prices
stagnated after having continued to rise earlier in the year, particularly for
larger properties with demand for small units remaining relatively strong. Prices
then started a slow decline, but, probably because the prices of houses in Finland
had risen at a moderate rate compared to some other countries, the fall in prices
was not as sharp.

The year 2009 has also been interesting. The activity-level in housing market was
quite  low during the first 2-3 months. After that market has started to recover and
the prices have followed. The total turnover of broker-companies rose first time to
positive level of 4 % in June of 2009, after having been negative from the May 2008.

Current status of Finnish housing market is at the moment relatively good. You can
say, that it is now much easier to act as a real estate agent compared to the
situation one year ago. The companies have started to recover and have started to
recruit new professionals after having dropped the amount of their staff during the
last winter. Many companies report, that they have broken the sales-records of their
companies in September 2009. KVKL’s own unofficial statistics shows, that the third
quarter of sales has been 10 percent better compared the situation year before.  The
prices have been rising over 4 percent during the same period.

The future of housing-market is quite positive at the moment in the country. The
most important business-leaders of KVKL predict, that the prices are still going up
during next winter and the amount of transactions will stay at the present, normal
level. The biggest threath in Finnish economy is the general situation of national
economy and especially the employment: if the future brings worsening figures, it
can affect negatively also to the confidence of consumers and at the same time to
housing market.
 

Helsinki
October 7, 2009


Jukka Malila
Managing Director,  CEO
Central Federation of Finnish Real Estate Agencies KVKL
tel: +358-50-5112100
e-mail: jukka.malilvkl.fi
www.kvkl.fi
www.hyvavalitystapa.fi

______________________________________________________________________________________

18.11.2008

Appreciation of real estate agent profession will grow as competence improves

CEPI minimum education document is a good benchmark.

It will be interesting to see how the CEPI goal of a 180-credit requirement and the related content will shift over time – or will it? European-level conditions will probably not become an unreasonable burden on us Finns as long as we sensibly anticipate future trends in the development of our own systems.

Finland’s wishes should be taken into account in the European model

What is essential in the European trend from the point of view of the real estate brokerage sector in Finland is that the European-level conditions should guide the profession in an appropriate direction considered desirable in Finland.  As an example of the Finnish viewpoint, we may quote the summary of the real estate brokerage business drafted by the Central Federation of Finnish Real Estate Agencies:  Real estate brokerage is a trust-based expert service designed to secure safe housing transactions for and on behalf of the customers; success in the profession calls for diverse customer service skills, a high standard of professional competence and compliance with a strict code of conduct.  

The Federation’s view of the profession in Finland matches the European view well.  No one is a natural talent at real estate brokerage: success in the profession requires not only experience but also sufficient and appropriate education and training.

Still much to improve in the Finnish system

Theory and practice do not yet meet in Finland’s current education and training system, however: there is still much to improve in the Finnish system to attain the level envisioned by CEPI. For example, the 180-credit requirement proposed by CEPI presents an extremely substantial challenge:  we know that at present there is not a single institution in Finland that provides real estate brokerage education and training fulfilling that requirement.  

The bodies and organizations providing real estate brokerage education and training in Finland and the relevant authorities should come together for a strategic discussion of how and when these minimum education requirements could be met.  We also need open debate on whether the CEPI model contains modules that are unnecessarily demanding or otherwise superfluous with regard to the successful conduct of the practical work of a real estate agent. If unnecessary elements are in fact identified, they should be reported to CEPI – after all, it is the purpose of a European organization to consider the needs of its member organizations.

International examples motivate development

The education and training profile in the Finnish real estate brokerage business must be raised to a par with those of the other Nordic countries, for instance to the polytechnic level, within a specific time frame.  There are already interim steps and building blocks in place: the Further Vocational Qualification for Real Estate Brokers (KiAT) introduced a few years ago and the Licensed Real Estate Agent (LKV) certification, which is administered by the Central Chamber of Commerce and which qualifies its holder to manage a real estate agency.  One possible line of development is to merge these elements gradually.  This merger could develop into something that is more than the sum of its parts. However, such a development would require a positive and innovative attitude from the parties responsible and also a reform of the relevant legislation.  The real estate brokerage sector must also enter into open discussion with representatives of scientific universities to get their input regarding ideas and potential in improving education and training in the field.  

Education builds professional image and the future of the business

What will be the stages and hierarchy in the education and training in the field in the future?  They have not yet been established, and the challenge of setting up an education and training structure is a highly interesting one.
In any case, the issue must be addressed with determination and looking at the big picture so that the real estate brokerage business will remain an attractive career environment for future generations too, offering a diverse, feasible and independent line of work and, with career progress, potential for considerable earnings.
Discussion and dialogue with international policy-makers in the sector will be crucial in the near future.  It is with this in mind that the Central Federation of Finnish Real Estate Agencies sought the membership of the European umbrella organization CEPI.  It is a key forum for the Finnish federation to influence issues important for the future of the sector.

Helsinki, November 2008

Jukka Malila
Managing Director, CEO
Central Federation of Finnish Real Estate Agencies

Further information on this topic:
www.kvkl.fi
www.cepi.eu