Average price for local market property now tops £600,000

The States mix-adjusted average purchase price for the third quarter of the year came in at £629,297, a 5.1% rise on the previous quarter and 13.5% higher than a year before.

In recent months the best-selling price bracket for local market sales has been the £600,000-999,999 range, making up more than 40% of all sales.

Keith Enevoldsen, head of residential sales at Savills in Guernsey, said the figures and market activity recorded were not a surprise and said the market remained ‘relatively robust’.

He described transaction levels as ‘healthy’ though slightly slower on the previous quarter and the previous year.

‘The market since mid-2020 has been unprecedented in terms of activity and it would have been unrealistic for it to continue at the same pace,’ he said.

‘Demand for well-presented, sensibly priced homes is strong and properties are selling within a good time frame.

‘We have also been pleasantly surprised by the number of buyers who are still committed to a move.

‘There are some who are having to readjust their budgets, but those who remain are very motivated. Looking ahead, I think it’s inevitable that levels of activity will calm – we already started to see a little bit of that at the end of this last quarter.

‘It’s also worth remembering that the majority of transactions which this latest update covers would have taken place over the summer when the base rate was lower, so it’s not necessarily reflective of what we are currently experiencing.

‘Rising interest rates and the higher cost of living are having an effect.

‘That said, historically Guernsey has often been insulated against any wider financial uncertainty and it will be interesting to see if that plays out once again.

‘I would expect the supply/demand imbalance to continue to support activity, but setting a realistic asking price will be fundamental for anyone looking to sell.’

The mix-adjusted annual rental was £1,726 a month, 5% lower than the June quarter, which was the biggest leap in a single quarter seen for some time, and 7.9% higher than in the second quarter of 2021.

The annual percentage change in house rental prices has been consistently ahead of RPI for the best part of two years.

Gill Mooney, who leads the lettings team at Savills, said that professionals and families were still driving demand in the rental market and good quality, sensibly-priced property remained highly sought-after.

But the market was slowing, she said, with the cost-of-living proving a factor.

Some landlords have even dropped prices so that the property does not stay empty.

The raw median open market price for the quarter was £1.57m., with the rolling four-quarter average up 18.8% year-on-year.

Over the past five years the average price in the open market has climbed by more than 50%.

The 23 sales in the market over the quarter was down on the 36 achieved in this period in 2021.

n The States said the mix-adjusted price is a measure of the value of the properties sold during the quarter, not a reflection of the values of individual properties, nor the change in the value of any one property over time. Many factors, including age, location and quality, determine the actual value of individual properties.