The forest property market has continued without significant disruption in the second quarter of the year, and demand for forest land remains strong. However, the number of transactions in the early part of the year has fallen behind last year’s levels, even though a new record was set in terms of euro volume. This is explained by both the high timber volume of the properties brought to market and the rise in market price levels.
Although the rise in forest property market prices continues to be very strong, it no longer reaches the peak figures seen last autumn. However, the year-on-year change remains at +10.1%, which continues to keep many forest owners very satisfied. Similarly, the strong development of stumpage prices has, at least momentarily, shifted many forest owners’ relationship with their forest towards prioritising returns. When measured for the early part of the year, however, inflation has already exceeded the rate of increase in market prices, meaning that in real terms, price levels have developed negatively. The Market Price Index illustrates the average change in market price levels for forest properties in mainland Finland (see image).
The share of professional buyers has already risen to over half of the total public market volume, measured in both hectares and euros. In terms of the number of transactions, professional investors purchased just over a third of the forest properties. In the early part of the year, the market supply has included a good number of high-volume and valuable properties, in which professional buyers are particularly interested. Furthermore, it can be noted that interest in forest investment remains high.
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