Lack of properties sees sales fall in last quarter

There were 235 local market transactions during October, November and December – 50 fewer than the previous quarter and 110 fewer than the same time the previous year, according to the Quarterly Residential Property Prices Bulletin.

Those properties that were on the market were snapped up even faster.

The news has not surprised Savills Guernsey residential team lead Keith Enevoldsen.

‘In many cases properties have been on the market for a very short period of time, especially those on the local market, with a sale agreed in a matter of days,’ he said.

‘As a result there has been an imbalance between supply and demand, with a real shortage of homes available for people to buy at any given time.

‘This is reflected in the quarter four figures, showing lower local market transaction levels than the first half of the year and a minor reduction in value.

‘However, those properties that were available saw fierce competition and many, both on the local market and open market, sold for in excess of their guide price.’

The figures also reveal a drop in properties being sold for below £400,000, with 56 in the last quarter compared with 75 in the previous quarter.

The busiest sector was the £600,000 to £990,000 category, with 76 sales.

Three-bedroom bungalows and four-bedroom homes are the most expensive, with an average price of nearly £700,000. That is higher than the average price of a three-bedroom house, which is below £600,000.

The average price of a home in Guernsey is nearly fifteen times the average salary, and people saving for a deposit are having to pay even higher rents.

At the end of last year the average price of a home was £550,893, which is tiny fall from the previous quarter.

Despite the slower end to the year, 2021 was still the busiest year for sales for the last four years, with 984, compared with with 937 in 2020 and 845 in 2019.

On the ground, estate agents are witnessing a number of people relocating to the island because they see Guernsey as a safe place for their families and their wealth.

Looking ahead, Mr Enevoldsen said there was some uncertainty about how the markets would react in spring and early summer, but the at moment the situation remains buoyant.