The price of forest land in Sweden has increased considerably during the last years. The price increase seems to continue during the spring although supply of land also increases. This is the conclusion to be drawn from a poll made by LRF Konsult, the biggest land and forest agency in Sweden.
Price statistics published at the beginning of the year indicate that the price of forest land has increased by 50 % during the last three years. The main reasons are the strong general business boom in Sweden and optimism in the forestry sector. The low interest level is another contributing factor, although forest estates generally are not very deep in debt. For that reason they are less vulnerable to changes of the interest rate.
Mr Lars Wesslund from LRF Konsult estimates that the strong boom has increased general purchasing power and consequently also the price level. Increased demand is also a consequence of strong confidence in forests as a future raw material source and of increased appreciation of soft values.