2022 Guernsey property market review

The past few years have seen unprecedented activity in the Guernsey property market, with easy access to low-interest lending (amongst other influences) leading to a post-pandemic surge in property demand.

A total of £586,022,152 was lent against Guernsey property in 2022 – the third-highest value in the 22 years that the figures have been collated, but still some £200m lower than recorded in 2021.

Whilst demand remains high, the market has been tempered by limited availability and events occurring in Westminster and beyond over the last 12 months.

Property transactions remained high

2022 saw the second-highest value of property conveyed in Guernsey since records began, with nearly £900m (£856,297,368) worth of property changing hands. This total is some £100m lower than the highest recorded year (2021), yet still £100m higher than the third-highest year on record (2020).

While values have remained high, the number of transactions in 2022 saw a decline from recent years. In 2022, a total of 990 arms’ length transactions completed, compared to a total of 1,153 in 2021. Of those transactions, the local and open markets accounted for 892 and 98, respectively.

Meanwhile, the open market saw another active year with numbers remaining high, although down from a high of 127 in 2021.

The market average

Looking at the local market:

• the average house price stood at £667,669 for the year – an increase of 13.5% on the 2021 average (which had itself increased by 13% year on year)
• the average apartment/flat price stood at £346,816 for the year – an increase of 8.2% against the previous year.

Turning to the open market:

• the average house price stood at £1,499,469 for the year – a decrease of 4.2% on 2021
• the average apartment/flat price stood at £1,539,188 for the year – an increase of 14%

Owing to the more limited availability, average prices on the open market are subject to greater fluctuation than the local market, and significant transactions can distort the figures.

Outlook for 2023

Paul Nettleship (pictured), Partner and head of Collas Crill’s Guernsey Property team said: “After a very busy 2022 I expect a ‘back to normal’ 2023 – demand for quality housing remains high, and so it is very much hoped that supply will increase to meet that demand. As always, we are here to help buyers and sellers with our top-ranked Property team.”