Experts describe a price sensitive market but one with prime conditions for sellers and landlords as demand heavily outweighs supply across the Guernsey Bailiwick
Guernsey’s property market continues to defy expectations with the highest level of open market transactions recorded since 2006, agents have said.
Property transactions were 19% up on the same period in 2020
In the local market, 781 transactions were seen in the first nine months of the year, 19% up on the same period in 2020, and their highest levels since 2007, which has led to this being the best year on record according to new research from Savills.
A shortage of housing stock balanced against 27% more registered buyers, year to date, underlined what has been labelled ‘prime conditions for sellers’ with demand far exceeding supply.
This was the message from local and national property experts, who presented analysis of the Guernsey market to more than 100 local buyers and sellers at a recent in-person event hosted by Savills at their office on Royal Terrace, Glategny Esplanade.
Driven in part by changing buyer needs as a result of Covid-19, Savills Guernsey saw an 11% increase in sales agreed between January and September of this year, compared to the same period of 2020, with 34% more viewings, year to date, and multiple offers received on 47% of those properties where sales have been agreed – underlining a commitment to move.
The six main reasons for buying in Guernsey were also outlined
- almost half (48%) looking to upsize
- investment/redevelopment (18%)
- downsizing (17%)
- relocation (12%)
- personal reasons (3%)
- purchasing a second home (2%)
Keith Enevoldsen (pictured), Head of Residential Sales at Savills in Guernsey, explains: “The last 18 months has seen the most significant shift in buyer behaviour that I have seen in my entire career. 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 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. Although buyers and sellers alike remain price sensitive, 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. These are prime conditions for sellers.”
Average Guernsey rent was £1,593
Guernsey’s lettings market was also under the spotlight during the event, where it was revealed that average rents in the Local Market had increased by 15.8% during the first half of this year. According to Savills Research, using States of Guernsey Data and Analytics, average rents on the island during the second quarter of this year stood at £1,593.
Savills has also reported that while there are a number of landlords exiting the market, returning islanders and professionals, coupled with stop-gap renters, are broadening the pool of tenants in the Bailiwick.
