Appenzell & Thurgau: How rural auctions become clever investments

Regional Specialties in the East: Why Rural Foreclosures Are Compelling

Those investing in rural cantons such as Appenzell Innerrhoden (AI), Appenzell Ausserrhoden (AR), and Thurgau (TG) benefit from three structural advantages: predictable competition, tangible price ranges relative to market value, and solid demand for housing. While urban markets like Zürich (ZH) or Geneva (GE) are characterized by high absolute activity, rural auctions offer what savvy investors value most: time for thorough due diligence and the chance to secure quality at a discount.

Data Situation 2021–2024: What the Market Actually Shows

Switzerland as a whole: In 2021 there were 854 procedures, in 2022 622, in 2023 644, and in 2024 610. The volume increased in 2024 despite a lower number to around 671 million CHF (+≈20% compared to 2023).
Seasonality: Peak months are consistently early summer and autumn (especially June and October in 2024; March and June in 2023).
Property Focus: Residential houses and condominiums consistently make up the majority of the procedures (≈ 65–75 %).

Thurgau (TG): Small Market with Strong Benchmark Values

The Thurgau (TG) stands out for condominiums with above-average average values. In 2023, the canton was one of the top three markets in terms of average market values for condominiums (≈ 1.05 million CHF). For investors, this is a quality signal: even away from the metropolises, stable willingness to pay exists, provided that location, condition, and floor plans are convincing.

In residential houses, TG shows higher volatility in average values over the years (keyword small sample sizes) – in 2022, average values were significantly below the top cantons, which creates selective opportunities. Important: average values are sensitive in small cantons; individual property assessments remain crucial.

Appenzell (AI/AR): Rare but Valuable Opportunities

In Appenzell Innerrhoden (AI) and Appenzell Ausserrhoden (AR), auctions are rare – exactly this creates space for thorough preparation. In 2023, AI was among the cantons with the lowest absolute number of procedures (each with 1 instance at the bottom of the table). In 2024, only two procedures were released in AR; AI recorded none. For strategic buyers, this means: few but all the more intensively analyzable dossiers.

How Rural Lots Become Smart Investments

1) Micro-Location & Practicality

Accessibility: Proximity to hubs such as Herisau/Heiden (AR) and Frauenfeld/Weinfelden (TG) ensures demand. Additionally, the connection to St. Gallen (SG) as a job and training market plays a complementary role.
Neighborhood Substance: Schools, public transport cadence, local supply, and leisure offerings directly impact achievable rents – crucial for the back-calculation price.

2) Property Quality & Energy

Building Substance: Year of construction, envelope, heating (heat pump/pellets), and age of windows determine Capex cycles. A solid renovation plan is cash in hand in the auction room.
Energy Leverage: In rural properties, consumption and operating costs can often be optimized with manageable investment (hydraulic balancing, insulation measures, PV), stabilizing returns.

3) Bidding Strategy: Disciplined and Data-Driven

The market value is a guideline, not a purchase order. Those who calculate with yield value and safety discounts bid confidently – but never uncontrolled.

// Back-calculation (simplified example)
Yield Value = (Annual Net Rent - non-allocable Costs) / Discount Rate
Safety Discount = 10% to 20% (property risks, market buffer)
MaxBid = min(Yield Value, Market Value) - Capex - Safety Discount

Market Mechanics in Practice

Dates & Timing

The clustering of dates in June and October (2024) and March and June (2023) allows for tactical planning: in "peak" months, the bidding room is often fuller, and the focus of competition spreads; in quieter months, niche opportunities can be utilized.

Property Types & Liquidity

Residential houses and condominiums provide the largest liquidity base in the auction market. For investors in TG, AR, and AI, this means: the best ratio of data availability (comparison values, rents) and exit flexibility.

Comparison & Benchmarks

Key Figure	Switzerland	Thurgau (TG)	Appenzell AR/AI	Comment
Number of Auctions (2024)	610	selective	AR: 2 \| AI: 0	Rare dossiers in AR/AI allow for thorough examination.
Total Volume (2024)	≈ 670.9 million CHF	–	–	Higher volume despite lower number underscores quality mix.
Peak Months	June, October (2024); March, June (2023)	–	–	Planning advantage for financing & bidding order.
Share of Residential Houses + Condos	≈ 75 % (2024) \| ≈ 68 % (2023)	–	–	Focus on classic residential uses.
Average Market Value Condos (2023)	–	≈ 1.05 million CHF	low case volume	TG is among the top cantons for average condo values.
Average Market Value Residential Houses (2022)	–	≈ 0.78 million CHF	–	Demonstrates the variability of small markets (sampling effect).

Risk Management: Five Levers That Matter in Rural Areas

Land Registry & Rights: Cleanly assess easements, rights of way, utilities, building obligations.
Building Law & Zoning: Clarify expansions and energy renovations early with the municipality.
Capex Discipline: Realistically calculate reserves for roof, facade, heating, and windows.
Tenant Demand: Translate commuting axes and regional employers (e.g., SG, TG) into the rental forecast.
Liquidity Planning: Fix bidding payment, conveyance costs, fees in the liquidity plan.

FAQ – Typical Investor Questions

How realistic is a discount to the market value?

In small bidding rooms, the chance for price discipline increases – discounts are possible but depend on property quality, competitive pressure, and financing security.

Which property types are suitable for entry?

Condos in good micro-locations (TG) for immediate cash flow; single-family and two-family houses (AR/AI) with clear Capex plans for value add.

When should I bid?

Screen broadly in peak months, selectively strike in quieter phases. Finalize financing before the auction.

Conclusion: Rural Auctions Reward Systematic Approaches

Those who understand the market cycle, comprehend micro-locations, and calculate clearly in reverse will find yield-rich, low-risk opportunities in Thurgau (TG), Appenzell Ausserrhoden (AR), and Appenzell Innerrhoden (AI) – beyond the hustle and bustle of major cities and with exactly the data foundation required for disciplined bidding.