The Guernsey Residential Property Prices Bulletin has been published for Quarter 2 of 2023.
The mix adjusted average purchase price for Local Market properties was £600,836 in the second quarter of 2023, 2.1% lower than the previous quarter, 0.3% higher than the second quarter of 2022 and 46.2% higher than five years previously.
There were 175 Local Market transactions during the second quarter of 2023, 62 more than the previous quarter, 61 fewer than during the second quarter of 2022 and 8 fewer than five years previously.
The raw median price (realty only) of the 20 Open Market transactions in the second quarter of 2023 was £1,633,125.
The mix adjusted average monthly rental price for Local Market properties was £1,864 in the second quarter of 2023, 4.8% higher than the previous quarter, 2.6% higher than the second quarter of 2022 and 42.3% higher than five years previously.
Nick Paluch (pictured), Director with the residential sales team at Savills Guernsey, said: “The housing market hit a peak in 2022 – so a cooling off period was perhaps somewhat inevitable. As such the slowdown in activity in the Local Market is not wholly unexpected. The market has returned to more seasonal trends and something that resembles a post pandemic norm – with the number of transactions now broadly reflective of 2019 and 2018.
“Sales are also taking longer to complete because buyers haven’t necessarily felt the same level of urgency as they did in the previous couple of years. Realistic pricing has therefore been key to maintaining momentum; something that both sellers and buyers have had to keep firmly in mind.
“Rising interest rates and the increasing cost of living continue to make life challenging for those buying and selling. The good news is that there are still a robust number of people who remain committed to a purchase in the Local Market – they are just having to adjust their budgets accordingly. We also expect more stock to come to the market in the upcoming months, which should give encouragement to those now starting their property search.
“In the Open Market activity looks to be on a par with 2022 – with 20 transactions in the last three months to June compared to 19 for the same period last year. The average median price has also increased by 19.5 per cent, albeit this is traditionally subject to greater variation given the smaller number of transactions. The long term forecasts remain positive and we expect activity to increase as we approach the end of the year and early 2024. Guernsey remains a very attractive destination, particularly when compared to the unsettled nature of the UK and the possibility of a General Election on the horizon.”
Annie Le Prevost, residential lettings manager with Savills Guernsey, said: “To some extent, rental prices had appeared to be stabilising at the end of last year, however, clearly, that has not been the case in recent months. The comparative increase from the first quarter of this year is quite possibly a result of the type of properties that have been let, rather than prices increasing in general.
“It’s true that some landlords have had to increase their monthly asking price – higher rates of TRP, rising insurance quotes and the general expense of routine maintenance work for example, have all put upward pressure on prices. In addition, stock levels remain a challenge; the number of rental properties available simply does not satisfy demand.
“Rising interest rates are deterring many new landlords from entering the buy to let market and, similarly, it is proving more difficult for first time buyers to get onto the property ladder – resulting in them staying in rented accommodation for extended periods before they commit to a purchase. Consequently, there is a particular shortage of one and two-bedroom apartments and smaller family homes. In comparison, we have seen more three to four-bedroom homes available, and they naturally command a higher price.
“There continues to be a large proportion of people relocating to Guernsey for work, so competition for rental properties will only continue.”
