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Imagining the post-coronavirus world: six Stockholm traits that offer rays of hope

Change in the 21st century has been unrelenting. But now that the world has unexpectedly been forced to slow down, it seems clear that some changes haven’t come fast enough.

Imagining the post-coronavirus world: six Stockholm traits that offer rays of hope
Photo: Funda Sezgi, Norrsken Foundation

The world is facing the gravest economic and social challenges in living memory. No single city – or even country – will have all the solutions.

But with its pioneering spirit and proven ingenuity, Stockholm punches well above its weight. We spoke with Funda Sezgi, of Norrsken Foundation, the Stockholm-based impact hub, about the city’s characteristics – and rays of hope for creating new systems better suited to the demands of our time.

1. Innovative

With only Silicon Valley having more unicorn companies per capita, Stockholm has gained global recognition as a centre of innovation.

Responding to shortages of protective gear for healthcare workers, Erik Cederberg, of Stockholm-based 3D Verkstan, found an original solution.

He designed a simple forehead band to hold standard plastic sheets, forming a face shield. Thousands of shields have been 3D-printed based on the design, including for doctors and nurses in New York.

Sezgi, Norrsken’s chief operating officer, says the city is benefiting from a forward-looking school system, including early provision of computers. “Thinking in new ways and tinkering with solutions is part of this society’s genes,” she said. 

Find out more about ‘the unicorn factory’ from Invest Stockholm

“Sweden’s early adoption of computers and the internet has creative implications. I also believe the education system helped put critical thinking in the DNA. That’s very useful for entrepreneurship, innovation and technology.”

2. Early adopters

Countries are being challenged like never before in peacetime to show how quickly they can adopt new norms. Stockholmers have already proven themselves to be early adopters in many areas of life. 

From Sweden’s status as the world’s most cashless society to a clutch of health apps offering video consultations with doctors, Stockholm moves fast. This ease with moving to newer ways of doing things when they prove more efficient could be hugely beneficial amid such far-ranging disruption.

Sezgi says Norrsken Foundation always has a “bias for action”. This enabled them to set up Action Against Corona, in collaboration with the newspaper Dagens industri and the private equity firm Nordic Capital, at lightning speed.

The platform provides funding and access to networks for start-up projects aimed at tackling coronavirus-related problems, whether in health or wider society.

Photo: Henrik Trygg/Stockholm Media Bank

“We woke up to a Monday meeting where we said we should do something to support the initiatives,” she explains. “Within literally 30 hours, we had the first platform out with over 80 partners. We like doing without overthinking; we do then we fix.”

3. Sustainable

The world has entered what trend forecaster Li Edelkoort calls a “quarantine of consumption”. Could we learn from this to make ourselves better prepared for climate change?

Sezgi says our model of consumption made reaching “the planet’s boundaries” inevitable. “Now that has hit us a bit harder and quicker than anyone anticipated,” she adds. “Systems have been built divisively, revolving around I rather than we or us. But Stockholm is a pioneer for any conversation about sustainability and innovation.”

Food waste is a prime example of our unsustainable lifestyles; around a third of all food produced globally is lost or thrown away. Karma, founded in Stockholm in 2016, allows you to buy surplus food from retailers at low prices. 

Consumers select what they want in the app and collect the food themselves. During the coronavirus outbreak, Karma has switched to offer deliveries instead in both Sweden and the UK.

hoto: Henrik Trygg/Stockholm Media Bank

Stockholm-based Pool.Farm merges small purchases of foods or supplies into bigger collaborative orders from local suppliers. The free service promises to save time, money and carbon emissions.

Interested in establishing, expanding or relocating your business to Stockholm? Find out more

“I want to enable people to act as citizens in the supply chain to ensure a diversity of products and suppliers,” says the company’s French founder, Corentin de Trégomain. “If we don’t act as a community, we will always give the advantage to the big players but they’re not always the ones I want to support.”

4. Transparent

The pandemic has highlighted a defining characteristic of our age: information overload. That can lead to confusion and even risk panic. Transparency about the information and data that can have most impact is crucial.

This is an article of faith among Stockholm’s start-up community; 3D Verkstan quickly had an impact with face shields because its open source files are accessible to all.

Sezgi believes such transparency comes from being humble. “Norrsken and Stockholm are a drop in the ocean,” she says. “We’re now dealing with global problems, so unless we’ve shifted our mindset to include each other in the solutions, the impact will only be a little splash. The only way to do this right is by collaborating.”

Read also: Imagining the post-coronavirus world: can we transform our habits for the better?

5. Trusting in people

Each day brings stories of people supporting each other in new ways amid the disruption to our usual relationships.

In Stockholm, the notions of equality, flexibility and shared responsibility run deep. This is apparent in progressive attitudes to work-life balance and flattish hierarchies that aim to give everyone a voice.

Photo: Helén Pe/Stockholm Media Bank

Sezgi sees the trust that helps give Stockholm its character as two-fold. “It means: ‘I trust you won’t harm me’ but also ‘I trust you’ll do a great job if you take this responsibility’,” she says. “Here, you have that deeper trust in people’s competence.”

The pandemic has shown we have the technology to enable many people to work more flexibly. Post-pandemic, will the world have the trust in people?

6. Visionary

Stockholm may not have the scale of London, New York or Shanghai. But the city of the Nobel Prize has vision and was the first to declare itself ‘A Woman’s Place’.

Norrsken Foundation ended 2019 by launching a €100 million social impact fund for early stage start-ups. Many issues it was designed for now seem even more urgent: poverty, food waste and mental health, for example.

Learn more about one of the most creative tech scenes in the world 

Norrsken and Action Against Corona ask big questions. “How do we use the superpowers of tech, innovation and entrepreneurship to find solutions to the problems that matter?” asks Sezgi.

This vision is further illuminated by an in-house motto: to seek to make themselves redundant. “That’s a value we live by in everything we do so that we can keep progressing,” she says. “We’re an ecosystem builder, connecting a network of actors on the same issue.”

A world in which problem-solvers gradually make themselves surplus to requirements? Now, there’s an ambitious vision.

This article was produced by The Local Creative Studio in partnership with Invest Stockholm

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PROPERTY

Should you buy a home in Sweden this summer?

Considering the fickle trends in the Swedish housing market, prospective homebuyers might find themselves at a crossroads this summer.

Should you buy a home in Sweden this summer?

After a period of falling prices driven by increased interest rates, the Swedish housing market is seeing a rebound, particularly in the biggest cities.

However, it’s also taking longer to finalise home sales.

READ MORE:

Recent data from Swedish property listings site Hemnet indicates that while home sales – and housing prices – are on the rise, the time to complete transactions has notably increased.

For instance, the average sale time for an apartment in Sweden increased to 27 days in the first half of the year, up from 22 days during the same period last year. Similarly, houses now take an average of 31 days to sell, compared to 30 days previously.

The slowest market is in the Gävleborg region, where it takes an average of 44 days to sell a home. The fastest transactions occur in Stockholm, with apartments selling in just 16 days and detached homes in 23 days.

This variation in market activity across the country calls for a deeper look into where the best opportunities might lie for homebuyers this summer.

Renewed market confidence in Sweden’s biggest cities

The confidence in the Swedish property market is on its way up in Stockholm, Gothenburg, and Malmö, Erik Holmberg, a market analyst at Hemnet, told The Local.

“I would say that we have seen a weaker market in the last couple of years, almost everywhere in the country, since the Swedish central bank started to increase the interest policy rate, which affected the market a lot,” he said.

“But in the last half of the year or rather in the last year, the confidence has come back in bigger cities – in Stockholm, Gothenburg, Malmö… When we look at price developments last year, in three of Sweden’s biggest cities, we see prices increasing again.”

However, the analyst warned that the opposite is currently true in other areas of the country, which have seen a continued decrease in market activity and flatter developments in the same time interval.

A new trend emerging in Stockholm?

As Hemnet’s analyst explained, in Sweden, housing market trends usually start in Stockholm, when the market begins to change, causing a ripple effect.

“And that’s what we have seen. Now, market activity and prices are increasing again in the bigger cities. Usually, when the market changes, other areas in the country follow, and that could be the case now,” said Holmberg.

“When the rates and inflation situation become clearer, other parts of the country might follow the market in the big cities. Our main scenario is that we will see this spread,” he said, adding that prices in Stockholm have picked up quite fast in the last year but that the demand is still affected by the high interest rates.

“I wouldn’t be surprised if we saw swift price developments in some areas with the highest demand, such as city centres.”

The effect on the rental market

Another aspect to consider is the rental market, which could see significant changes in the short to mid-term.

Holmberg pointed out that properties which fail to sell might enter the rental market.

“What we’ve seen is that it’s harder to sell properties today, so, probably, more people who own homes and can’t sell them will put these unsold homes on the market for a while. This could affect the supply of apartments for rent and, in turn, prices,” the analyst said.

INTERVIEW:

What different types of homebuyers should know

For buyers, the current market presents a mixed bag.

“In Sweden, we often talk of having a seller’s or buyer’s market. Today, it’s good for buyers that they have a lot to choose from; there’s a record-high supply almost everywhere in the country. That means it’s easy to find something,” said Holmberg.

However, he also cautioned that the slow market makes agreeing on terms with sellers challenging, with sales times at record highs.

“Sales take some time in today’s market, and that’s important to understand for both sellers and buyers, especially for homeowners who are changing homes, meaning they’re both buying and selling something; it’s a tough market for them.

“Today, this group often chooses to sell their home before they buy something new. That makes up a big part of record high sales times; we have people waiting for the right bid before moving from the selling to the buying side…” Holmberg said, noting that the market is different compared to two to three years ago when it was “very hot”.

“So, remember that even if prices grow, it’s still a tough or slow market.”

READ MORE:

On the other hand, first-time buyers might find a silver lining in the form of lower prices compared to a couple of years ago, making it a potentially favourable time to enter the Swedish housing market.

“First-time buyers are in another situation, which may be better because the prices are lower than two years ago, of course, and if you’re just buying something, you don’t need to worry about the selling part,” Holmberg told The Local.

“That’s why this could be a good situation to enter the housing market this summer, but even so, despite supply being really high, it could still be tough because many sellers have put down a listed price but don’t necessarily plan to sell at this price.”

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