The Guernsey Residential Property Prices Bulletin has been published for Quarter 4 of 2023.
The mix adjusted average purchase price for Local Market properties was £609,362 in the fourth quarter of 2023, 5.9% lower than the previous quarter, 4.5% lower than the fourth quarter of 2022 and 47.5% higher than five years previously.
There were 150 Local Market transactions during the fourth quarter of 2023, 12 more than the previous quarter, 31 fewer than during the fourth quarter of 2022 and 86 fewer than five years previously.
The raw median price (realty only) of the 7 Open Market transactions in the fourth quarter of 2023 was £1,462,500.
The mix adjusted average monthly rental price for Local Market properties was £1,922 in the fourth quarter of 2023, 0.7% higher than the previous quarter, 11.4% higher than the fourth quarter of 2022 and 44.0% higher than five years previously.
Stuart Leslie (pictured), head of residential sales at Savills Guernsey, said: “The figures in the most recent bulletin don’t necessarily come as a surprise. The rise in interest rates and increase in the cost of living led to varying degrees of turbulence in the housing market throughout the course of last year.
“Consequently a lot of people were sitting tight and waiting for the situation to improve before committing to a move, which is why we saw a drop in the number of overall transactions year on year. That wasn’t unique to Guernsey – it was happening in the UK and elsewhere as well. However, with inflation now heading back towards the Bank of England target of 2.0% and more stability in the mortgage markets there’s every reason to be optimistic for the spring.
“The market is still likely to be price sensitive, but best in class well-maintained homes are attracting plenty of interest. New buyer registrations are also better than expected. The Local Market has already been busy and we’ve been called to value a number of properties – a sign that confidence is beginning to return and people are readying themselves for a move. We’re also starting to see more activity in the Open Market. Falling lending and leveraging costs should translate into a wider range of buyers with less pressure on budgets, and we could well see enhanced interest from re-locaters in the coming months with a general election on the horizon in the UK.”
Annie Le Prevost, lettings manager at Savills Guernsey, said: “Year on year there was significant rental growth of 11.4% – although that looks to have slowed in the last quarter of 2023 and prices are perhaps not increasing at quite the same rate as they were. A rise in the cost of living means tenants are much more mindful of what they’re spending and that’s no doubt been reflected in monthly asking prices. While demand clearly still outweighs supply, relatively speaking, stock levels also appear to be on the rise – particularly smaller properties.
“Whereas the fourth quarter of 2023 saw more family homes becoming available, it seems the first quarter of 2024 is seeing more one and two-bedroom apartments, which is positive as this is where significant demand lies and may be conducive to a reduction in the average rental price. This upsurge in stock gives tenants more choice and could in part account for some of the levelling off. However, whether this continues remains to be seen. The cost of labour means many landlords are on the hunt for property which requires very little renovation work, and which can be occupied immediately. These are few and far between, so I think we will continue to see an imbalance between supply and demand that keeps pressure on prices.”
