Foreclosures in St. Gallen: For investors with vision
July 25, 2025
Regional Characteristics and Opportunities in St. Gallen
Foreclosures are not a mass phenomenon in Eastern Switzerland – and that is exactly what makes them attractive for investors. St. Gallen (SG) combines a solid, medium-sized economy with down-to-earth real estate markets. The competition in auctions is manageable, informational advantages can be systematically built, and the price ranges between market value and sale offer selective opportunities.
Market Data Overview (2021–2024)
Switzerland recorded a total of 610 foreclosures in 2024 with a volume of around 670.9 million CHF – an increase compared to 2023, although the number of cases slightly decreased.
For St. Gallen (SG), the initial situation is stable: 27 auctions were registered in 2023, which corresponds to about 4.5 cases per 100,000 inhabitants.
In terms of price, there is a clear spread by property category: In St. Gallen, the average market value of foreclosed condominiums in 2023 was around 547,000 CHF and of residential houses around 1.073 million CHF.
For comparison: in 2022, the average value in St. Gallen for residential houses was around 886,000 CHF; in 2021 it was around 683,000 CHF – an indication of the structural upward trend in the cantonal stock and the attractiveness of better locations.
| Year | Indicator | Value | Comment |
|---|---|---|---|
| 2024 (CH) | Number / Volume | 610 / ~670.9 million CHF | Fewer cases, higher volume – focus on more valuable objects. |
| 2023 (SG) | Number | 27 | ~4.5 cases per 100,000 inhabitants – moderate, manageable supply. |
| 2023 (SG) | Avg. market value condominiums | ~547,000 CHF | Interesting for buy-to-let strategies with sustainable rent. |
| 2023 (SG) | Avg. market value residential houses | ~1.073 million CHF | Selection based on micro-location is decisive (infrastructure, public transport, local supply). |
| 2022 (SG) | Avg. market value residential houses | ~886,000 CHF | Reference value in a phase of lower case numbers. |
| 2021 (SG) | Avg. market value residential houses | ~683,000 CHF | Highlights the mid-term price trend upwards. |
Positioning in the National Context
Activity often concentrates in the southern cantons across Switzerland – such as in the Ticino (TI), in the Valais (VS), and in the Vaud (VD). Urban and populous cantons like Zurich (ZH) and Geneva (GE) naturally lag in per capita views, although the absolute number of auctions can be high.
In terms of properties, residential houses and condominiums dominate nationwide with around two-thirds to three-quarters of all cases (approximately 68% in 2023, approximately 75% in 2024). For investors, this means: The largest opportunity set lies in the classic residential uses – this is precisely where St. Gallen (SG) offers solid, well-calculable cash flow profiles.
Why St. Gallen Excels in the Bidding Room
1) Manageable Supply and Transparent Values
- Consistency over Haste: A moderate number of cases – 27 in 2023 – allows for thorough due diligence and a calm, fact-based bidding process.
- Market Values as Guidelines: The cantonal estimate (market value) provides orientation. In St. Gallen, the average values in 2023 were ~547,000 CHF (condominiums) and ~1.073 million CHF (residential houses).
2) Opportunities through Micro-locations
In Eastern Switzerland, micro-locations – public transport connections, local supply, neighborhood substance – determine rental yield and value development. The price range between rural sub-markets and central locations in the canton is a source for value-add strategies (renovation, floor plan optimization, energy efficiency).
3) Risk Management through Property Selection and Timing
- Prioritize Property Types: Since residential houses and condominiums shape the market, data points, comparative values, and rental benchmarks are most readily available – reducing valuation risks.
- Utilize Seasonality: New dates regularly accumulate in late spring and fall (in 2024, for example, a volume peak in June). For investors, this means: Plan acquisition and financing windows in advance.
Those who systematically review in St. Gallen, selectively bid, and incorporate micro-location into rental calculations increase their hit rate – and reduce downside risk.
Practical Guide for Getting Started
Data & Screening
- Regularly track auction lists and auction conditions; continuously document market values and land register details.
- Collect comparative values by neighborhood and construction year class (year of construction, condition, energy needs, floor plan).
- Conduct banking discussions early (financing framework, collateral contribution, payment modalities after award).
Valuation & Bidding Strategy
- Conservative Calculation: Include safety discounts for renovations, depreciation corrections, and ancillary costs.
- Define Bidding Corridor: Derive the maximum bid from the expected yield value (rent after renovation).
- Consider Exits: Hold (cash flow), hold & renovate (value increase) or selective sale – depending on location and property.
Setting Focus in St. Gallen
For low-risk first investments, condominiums with solid average market values (~547,000 CHF in 2023) are recommended; for single-family and multi-family houses (~1.073 million CHF average in 2023), the quality of location determines whether value-add measures (energy renovation, floor plan) can increase yields.
Comparison with Neighboring Cantons
In Eastern Switzerland, it is worthwhile to look across cantonal borders: Thurgau (TG) has sometimes higher average values for condominiums, Glarus (GL) and Jura (JU) show comparatively higher auction rates relative to the population, while Zurich (ZH) is strong in absolute terms but falls behind per capita.
FAQ – Typical Investor Questions
How do I assess the risk of hidden defects?
Reserve for renovations and expert checks before the appointment. In case of uncertainty, apply more safety discounts – discipline beats impulsive purchases.
Which properties are particularly suitable in SG?
Condominiums in good micro-locations for cash flow strategies; single-family houses with solid building substance for value-add (energy standards, floor plan optimization).
How do I plan the financing?
Secure limits early; solidly incorporate award payments and ancillary costs (transfer fees, charges).
Conclusion: St. Gallen Rewards Foresight
The canton offers investors a manageable environment, sufficient deal flow, and clear reference values. Those who select based on data, understand micro-locations, and bid disciplinedly, can sustainably build substance in St. Gallen (SG) – with calculable risk and solid return prospects.
