Rise in property prices shows strong economy

THE cost of buying a house in Guernsey is rising rapidly again.

Policy Council figures show the local market median price for the last quarter of 2010 was £396,500, an annual increase of 20% and a 5.7% rise on the previous quarter.

The more reliable moving average price showed an annual increase of 13.1% to £370,647 and a quarterly rise of 4.7%.

Treasury and Resources member Allister Langlois and estate agent Adrian Morris said that it would be wrong to read too much into the one-off median price.

Deputy Langlois, referring to the moving average, said it was good news for the economy, but there were concerns for first-time buyers.

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