Average prices: This is how much real estate really costs at foreclosure auction

What "Average Price" Really Means in the Auction Context

In forced auctions, the published market value is the official estimate used as a reference for price formation. The final bid can be below or above this value, depending on demand, property quality, legal situation, and funding status of the bidders. Average prices are therefore not "fixed prices," but benchmarks – they indicate the price ranges in which properties typically move and how significantly the segments differ.

Swiss Average Values 2021–2024: The Objective Price Compass

The following average values (Ø market values) show the price level by property category in a four-year comparison. For 2024, the Ø values are partially derivable from published volumes and property numbers.

Property Type	2021	2022	2023	2024
Condominium	≈ 758,000 CHF	≈ 674,000 CHF	≈ 742,000 CHF	≈ 1,030,000 CHF
Single-Family Home (EFH/DHH)	≈ 1,025,000 CHF	≈ 903,000 CHF	≈ 1,028,000 CHF	≈ 1,110,000 CHF
Multi-Family House	≈ 2,424,000 CHF	≈ 8,960,000 CHF	≈ 1,630,000 CHF	≈ 1,590,000 CHF
Residential/Commercial Building	≈ 2,530,000 CHF	≈ 3,920,000 CHF	≈ 1,874,000 CHF	≈ 1,820,000 CHF
Commercial Property	≈ 1,573,000 CHF	≈ 1,451,000 CHF	≈ 1,095,000 CHF	≈ 1,404,000 CHF
Villa	≈ 2,486,000 CHF	≈ 3,850,000 CHF	≈ 5,143,000 CHF	≈ 3,920,000 CHF
Property/Plot	≈ 321,000 CHF	≈ 451,000 CHF	≈ 150,000 CHF	≈ 198,000 CHF

Classification: The significant spike in multi-family homes in 2022 is a typical "sample effect" due to a few very large lots. In 2024, the Ø values for apartments and houses rose because the auction volume increased and higher-priced properties entered the market.

Price Reality by Canton: Where It's Expensive – and Why

Average prices vary significantly by canton. This has three reasons: quality of location (e.g., lake/city), mix of properties, and sample size. Selected patterns by year:

Condominiums

• 2023: Peak in Zurich (ZH), Geneva (GE), Thurgau (TG); lower in Jura (JU), Schwyz (SZ).
• 2022: Peak in GE, SZ, Zug (ZG).
• 2021: Peak in Nidwalden (NW), Uri (UR), Graubünden (GR).

Residential Houses

• 2023: Peak in Vaud (VD), ZH, GE; cheaper in SZ, JU.
• 2022: Peak in GR, Lucerne (LU).
• 2021: Peak in Basel-Stadt (BS), ZH.

Practice: In ZH/GE/ZG you buy the location – in TI, VS, VD you buy the leverage: wider range, more frequent modernization needs, but better entry opportunities.

---

Price Bands instead of Point Values: How Broad the Spread Really Is

• Condominiums 2023: ~60% of cases ≤ 600,000 CHF; distribution focus below 1 million CHF.
• Residential Houses 2023: ~66% between 400,000 and 1,200,000 CHF.
• Properties/Plots 2023: Clustering in the very low range (up to ~20,000 CHF), while also outliers exceeding 380,000 CHF – high heterogeneity.
• Condominiums 2022: ~61% ≤ 600,000 CHF; houses ~59% between 400,000 and 800,000 CHF.

Conclusion: The “average” is useful, but the spread is crucial for the specific maximum bid.

From Average to Deal: Price Discipline in the Auction

Experienced buyers derive the bidding range from cash flow (existing) or residual value (development) – never from gut feeling. Two minimalist models for everyday use:

// Existing (Rent, Capex, Target Yield)
MaxBid = NOI / Target-CapRate 
         - (Immediate-Capex + Transaction Costs) 
         - Safety Margin

// Development (e.g., for Properties/EFH Refits)
Land Value/Property Value ≈ Stable Project Value
                      – (Construction Costs + Operating Costs)
                      – (Margin + Risk Surcharge)

Which Canton Fits Which Budget?

• Premium/Core (higher Ø prices, rarer lots): ZH, GE, ZG, SZ, LU – focus on value retention, smaller discount, high exit liquidity.
• Deal-Flow & Range (attractive average prices, many comparison cases): TI, VD, BE, VS, SO – ideal for pipeline strategies.
• Value-Add Midlands (solid Ø prices, realistic Capex levers): AG, TG, SG, FR, NE.
• Alpine Leisure Markets (higher utility value, sometimes restrictive law): GR, VS, TI – offers are rarer, Ø prices in the upper range.

What Drives Ø Prices by Category – and How Do I Use This?

1. Quality of Location: Proximity to lake and city in ZH, GE, ZG, SZ generates higher Ø values; auctions are rarer there but very valuable.
2. Property Mix: Many EFH/ETW lower the overall Ø, while individual large lots (MFH/residential-commercial) raise it noticeably in the short term.
3. Condition & Capex: Renovation backlogs push entry prices down – creating the opportunity to "undercut" the Ø through modernization.

---

Mini-Guide: 6 Steps to Winning Below Average

1. Plan Market Windows: Utilize spring and autumn waves (June/October); specifically check summer months for "hidden gems."
2. Set Cantonal Benchmarks: Know Ø values and dispersions per canton (see patterns above) and establish realistic ranges.
3. 30-Minute Screening per Property: Location, legal status, shell/house technology, rough Capex; immediately dismiss red flags.
4. Model MaxBid: Apply cash flow or residual model (above); set safety margin.
5. Prioritize Financing: Prepare bidding security/term sheet – speed beats intuition.
6. Post-Bid: Immediate checks (safety, insurances), finalize Capex plan, define exit path.

“Average prices are the compass – buying requires discipline. Those who think in ranges and calculate cleanly pay less than the average.”

FAQ: Average Prices & Auctions

• Are Ø values "reliable"? Yes, as a guideline. But small samples (e.g., villas, MFH) can greatly distort the annual Ø.
• Why are apartments/houses more expensive in 2024 than in 2023? Higher overall volume and more high-priced cases in the mix; at the same time, the number of auctions remained slightly lower.
• How do I find deals below the Ø? Focus on cantons with broad dispersions and higher auction rates (TI, VD, VS, BE, SO) and consistently bid according to the model.