Local property market remains buoyant despite lack of stock

The Guernsey quarterly residential property prices bulletin reported a 9.6% increase in the average local market purchase price since last quarter, with a 19% increase year-on-year.

‘The mix-adjusted average purchase price for local market properties was £554,290 in the third quarter of 2021,’ said estate agents Savills.

‘The annual percentage increase in price growth is expected to be the highest since this measure was first calculated in 2008.’

Rental prices remain high too, up some 16% year-on-year over the same period. se since the same time last year.

‘The property market in Guernsey has seen no let-up in demand from potential buyers but a shortage of stock resulted in fewer sales during the last quarter,’ said Savills.

Additionally, the average time between a property becoming available for purchase and the time of its sale has been decreasing.

The bulletin also reported 36 open market transactions in the third quarter, with a median price of £1,345,500.

In the five years ending in June 2021, Savills said the open market average had 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,’ said Nick Paluch of Savills Guernsey.

‘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.’