The Residential Property Prices Bulletin for the third quarter of 2025, published yesterday, showed that the average local market purchase price has dropped to £592,584 from £647,889 between July and September in 2023.
This is the lowest average house price in a third quarter since 2021 and was down 2.8% on the same time last year when it was £609,723. Prices have also dropped by 0.7% since the figure was last calculated in June.
Since the drop in average local market house price the number of local market transactions has risen too.
There have been 14 more transactions than in the previous quarter, and 44 more than there were this time last year.
‘For most of this year the island’s property markets have been a little up and down and it’s been difficult to gauge what might happen from one month to the next.
'But we do now appear to be experiencing a greater degree of consistency,’ said Stuart Leslie, head of residential sales at Savills Guernsey.
‘Sales activity improved in the three months to the end of September, while recent conveyancing figures show that October proved to be the busiest month of the year so far – with sales rising in both the local and open markets.
'Much of the activity in the local market has been driven by properties priced between £600,000 and £1m., largely due to a softening in mortgage rates. This slight drop – coupled with an easing in house prices – has moved things along and enabled buyers to access the necessary lending and manage their costs more effectively.’
The median open market realty price has also dropped from £1.95m. in quarter three last year to £1.85m. this year. There were 22 deals completed on the open market during the quarter, six more than 12 months previously.
‘The open market figures are also encouraging. That’s perhaps not unusual – we often have open market applicants coming over in the summer, getting to know the island, and following up with sales that go through towards the end of the year,’ said Mr Leslie.
‘However, we do expect more activity following the UK’s Autumn Budget. We’re already seeing increased interest in anticipation of any possible tax changes – and it will be interesting to see if initial enquiries translate into sales.’
The bulletin also shows that the average rents continue to rise. In quarter three last year the average rent was £2,054 which has risen to £2,112 for quarter three this year.
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