The property market in Guernsey has seen no let off in demand from potential buyers but a shortage of stock resulted in fewer sales during the last quarter.
According to the States of Guernsey’s Q3 Quarterly Residential Property Prices bulletin, there were 285 Local Market transactions during the third quarter of 2021, 12 fewer than the previous quarter and 8 more than the same quarter of 2020.
The mix adjusted average purchase price for Local Market properties was £554,290 in the third quarter of 2021, 9.6% higher than the previous quarter, and 19% higher than the third quarter of 2020. The annual percentage increase in price growth is expected to be the highest since this measure was first calculated, in 2008.
The differential between the last recorded price advertised by estate agents and the transaction price was between 1.2% and 1.6% in the third quarter of this year for all value bands.
Nick Paluch of Savills Guernsey said: “Over the last 18 months we have witnessed a seismic change in buyer behaviour. The main drivers in the Guernsey market are a desire for outside space, home working – including good connectivity, a sense of community, leisure and good schools. Guernsey has always been – and will continue to be – a very popular relocation market and we expect demand in both the Open and Local Markets to remain strong throughout all of this year and into 2022
“Whilst the market remains buoyant and demand is high across the board with a notable increase in instructions, it is important to reiterate that pricing remains key to a successful sale. The increase in sales agreed, number of viewings and transaction activity we have experienced this year, including the degree of multiple offers we are receiving on the properties we are selling, underlines just how active the market continues to be. It is still very much a seller’s market.”
Average residential property prices on the Open Market tend to fluctuate more than the Local Market prices due to the very wide ranging sale types and prices, and the small number of transactions. The raw median price (realty only) of the 36 Open Market transactions in the third quarter of 2021 was £1,345,500 compared with £1,222,250 in the third quarter of 2020, when there were 20 transactions. In the five years ending in June 2021, the Open Market four quarter average increased by 18.5%.
“This is representative of the activity that we have seen during the last year, underpinned by a number of cross-market buyers, that is locally-qualified applicants looking across to the Open Market, driven by the lack of stock in the Local Market. Many recent Open Market transactions below £1.5m have been to local buyers and this has the beneficial effect of freeing up Local Market properties to those looking to upsize.
“A shortage of available properties on the market but particularly in the rural parishes means that homes across Guernsey will continue to be in high demand. There will always be areas that buck the trend and perform better than others, however setting a realistic asking price from the start will be key to maintaining momentum as we finish the year and move into 2022.”
Main image shows La Belle Vue, a property available from Savills.
