Pricing of land for different forms of tenures in central Stockholm

Sammanfattning: The fact that there is a housing shortage in Stockholm is discussed regularly in the media today. Stockholm municipality owns about 70 percent of all land in the municipality and in the role as landowner, the municipality has the opportunity to influence where and what, within the municipality, there is to be built. In this paper, we have looked at the Norra Djurgårdsstaden project, Norra 2 and discovered that there are significant differences in how the city provides land for condominiums and tenancy apartments. We have in particular looked at how the land allocation and the pricing of the land have been made. In Stockholm municipality's land allocation policy from 2015 the municipality specifies four ways to grant land through land allocation. This policy also specifies the city that the tenancy apartments to have granted on leasehold. In this study we have looked at the differences and problems that can occur when tenancy apartments are granted the leasehold in a central location as Norra Djurgårdsstaden. Further on this paper discuss Stockholm municipality's new proposals on ground rents and what potential consequences for the construction of rental apartments in central Stockholm this proposal could have. We also discuss whether it is appropriate to grant leasehold rights for tenancy apartments in this kind of location in the city with the current rent setting system. Finally the paper brings up options for future applications that could allow different forms of tenure to compete for land in a more market oriented way.