A total of 195 local market transactions were completed during the second quarter of this year, according to the latest quarterly residential property prices bulletin published by the States – 29 more than the previous quarter and 50 more than in the second quarter of 2024. It was the busiest the market has been for more than two and a half years.
The mix-adjusted average purchase price for the local market properties transacted was just over £596,000.
That is 2.8% higher than the previous quarter and 1.5% higher than this time last year.
Nick Paluch, director in the residential sales team at property agents Savills Guernsey, said, while markets had been a little up and down of late, there were signs of resilience, as demonstrated by the rise in transaction volumes.
‘Prices in the local market appear to have recovered from the start of the year and lower interest rates have helped generate more activity,’ he said. ‘It is worth noting, however, that the price increase is still less than RPI, but it is at least a positive step.’
The latest bulletin also reveals local market properties are taking longer to sell.
The rolling four-quarter average time on the market rose to 259 days, up from 202 days 12 months ago.
Despite this, sellers are finding it easier to secure a deal closer to the original asking price.
The average final sale price was 7.3% below the maximum advertised price, compared to an 8.9% discount in 2024.
The mix-adjusted average rental price was £2,075 per calendar month, 5.3% higher than this time last year.
The gap was just 6.4% at the height of Covid.
Rents remain high, with the average sitting just over £2,000 per calendar month, which is 50% higher than it was five years ago.
The open market only saw 12 transactions during the last quarter, with Mr Paluch saying it had not been as busy as expected, particularly in light of changes to inheritance and capital gains tax in the UK.
He added the UK’s Autumn Budget would be important in determining how the rest of the year panned out.
‘Future cuts to interest rates and possibilities of relaxed mortgage criteria should ease some concerns and market sentiment could well look more promising, but fears about US trading policy and a number of global conflicts also have the potential to knock confidence.
‘Consequently, both the local and open markets are likely to be finely balanced as we head into September and beyond.’
He said sensible pricing would remain crucial for securing a sale, while a degree of compromise would also be needed from both buyers and sellers.
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