While technically a monthly publication, Arvopaperi made waves on Friday morning with its compelling coverage of real estate investors grappling with regret. The report shed light on a growing trend: many who invested in rental properties are now wishing they had held off.
As detailed by Tuomas Viljamaa, head of the Finnish Real Estate Association, the once-booming real estate market is now a distant memory. He notes that investors have largely retreated from the sector, even though declining property prices could present a prime opportunity for investment.
Viljamaa shared his insights during an appearance on the podcast Markkinaraati, hosted by business newspaper Kauppalehti. “This may come off as harsh, but prior to Covid, in the age of negative interest rates, it was almost embarrassing for a 40-something urban professional not to own an investment property. The boom was immense,” he remarked.
However, with interest rates soaring and housing values plummeting, the article underscores the precarious position of rental property owners.
According to Viljamaa, rental investors find themselves in a difficult financial bind. He compared the returns from private landlords to private investors, pointing out that last year, the Helsinki Stock Exchange yielded a remarkable 37 percent return, dividends included. In contrast, a studio apartment in Vantaa experienced a -10 percent return—an obvious choice for most investors, he concluded.
Another voice contributing to the discussion was Veera Holappa, a senior economist at the Pellervo Economic Research Institute. When asked whether rental investors are beginning to return to the market, she expressed caution. “I believe investors are still hesitant. While good opportunities exist, there’s a lingering fear that prices could dip further. The rental market has been sluggish, prompting many to hold off on significant decisions,” she explained.
Asko’s Future Hangs in the Balance
In a troubling development reported Thursday, Indoor Group—the parent company of the popular furniture chains Asko and Sotka—has filed for bankruptcy, raising concerns about the future of its outlets.
While Sotka is characterized by its discount offerings, Asko has a rich history that dates back to 1918, evolving into a significant player in Finnish design and furniture export.
It all began with carpenter August Asko-Avonius, who pioneered mass furniture production and established a factory in Lahti, as noted by Ilta-Sanomat. The factory’s name was later updated to Asko-Avonius, and the brand became a fixture in advertising. As Finland developed, so too did the company, expanding throughout the 20th century as the demand for furniture surged.
Professor Sirpa Asko-Seljavaara, August’s daughter, conveyed her shock at the bankruptcy news. “It would be a real shame if operations ceased. This is truly disheartening,” she shared with IS. Although her family stepped away from ownership in the 1980s, she maintained a connection by serving on the board for 20 years and currently heads the Asko Foundation, dedicated to supporting emerging architects and designers.
Over the decades, Asko has collaborated with distinguished designers, including Eero Aarnio, renowned for his iconic ball-shaped chair first introduced in 1966, which has since made its mark in design literature, exhibitions, films, and music videos.
In the ’60s and ’70s, Asko emerged as a leading Finnish exporter, with a network of furniture stores in what was once West Germany. Yet these times seem to be long gone, according to Asko-Seljavaara. “It is a peculiar situation in Finland now. There aren’t many renowned designers left, and if they exist, there are no factories to produce their works,” she lamented.
Otter Troubles in Hanko
In a rather unusual turn of events, otters have wreaked havoc on more than two dozen brand-new cars at a shipping logistics center in Hanko, located at the southern tip of mainland Finland.
This facility routinely welcomes new shipments of vehicles that await distribution to dealerships. Yet, these curious otters have been drawn to the contents of the vehicles, according to the Swedish-language daily Hufvudstadsbladet (HBL), which references a report by the agricultural publication, Maaseudun Tulevaisuus (MT).
MT estimates that the otters’ antics have caused damages totaling around €200,000 to the cars. The situation came to light when an application was submitted to the Finnish Wildlife Agency, requesting permission to manage the troublesome otters, potentially culling up to three of them.
In speaking with Yle, Laura Fontell-Seppelin from the Wildlife Agency commented on the baffling situation. “It’s a mystery,” she stated, speculating that the otters might be attracted by an enticing scent from the insulation materials within the cars. Though otters typically feed on fish, Fontell-Seppelin surmised that their interest in the vehicles might stem more from their inherent “curiosity and playfulness.”
Otters are a protected species in Finland, and permits for hunting them are granted only in exceptional circumstances. The facility’s operator, Freeport of Finland, clarified that any action taken follows the protocols set by authorities. “In a similar instance last year, the removal of one otter resolved the issue, and we hope to find a similar resolution this time,” CEO Jens Ekqvist told Yle.