world news - 07.11.2007

Continued price increases for Swedish forest land

Prices for Swedish forest land continue to rise, although somewhat slower than before. In the first half of 2007 prices increased in the whole country by an average of 12 % in comparison with the whole year 2006.

Despite price increases, the demand for forest land has not decreased. On the contrary, many brokers say that the demand for forests has rarely been more lively than at present. Forest sales have increased also in Southern Sweden after the problems with storm stricken forests and the spruce bark beetle resulted in a sluggish market during the spring.

The demand is particularly strong for bigger forest areas; 200 hectares and more. One reason is that many people consider forest to be a good investment object. It is easier to conduct forestry in a profitable manner on bigger areas. A look in the rear view mirror shows that Swedish forest prices have doubled during the last ten years and demand still seems to be increasing. One reason is that supply is limited, after all.
www.nordicforestry.org


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