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Monday, 16 August 2021

Q2 property prices suggest market is stabilising

The States of Guernsey has published its Residential Property Prices Bulletin for the second quarter of 2021, and the numbers suggest that the market has stabilised.

The quarter-on-quarter fall of 0.8% in the mix adjusted average property price for Local Market homes represents the first quarterly fall since Q3 of 2019, and suggests that the Guernsey market has found its level for 2021.

£505,579 was the average price of Local Market properties sold across the second quarter of the year.

Prices may be stabilising, but the quantity of transactions hit a high with 297 deals completed. This is the highest figure for a second quarter since records began, in 1999.

This is perhaps attributable to Guernsey’s second lockdown, from late-January to late-March 2021. With relatively few transactions going through in February and March, many of these will have run over into April, May and June.

Space for the family

Family homes remain the most sought-after segment of the market, with three-bedroom houses comprising 17% of all sales.

Livingroom’s experienced negotiators can certainly relate to that statistic, as the demand for space has rocketed as a result of COVID-19 and a subsequent re-evaluation of lifestyle priorities. Our team have been advising prospective buyers on how to derive value from this section of the market, while fulfilling their housing goals.

Houses of this variety tend to fall in the £300,000-£499,000 price bracket, so it’s no surprise that 108 of the 297 transactions (36%) fell in this category.

Attractiveness of Guernsey

The COVID-19 pandemic has made plain the safety, security and stability offered by the Channel Islands, and our team have been fielding more and more queries from those looking to relocate to Guernsey.

Open Market properties have therefore grown in desirability over the last 18 months, a fact borne out in the bulletin, which records 35 Open Market transactions in Q2 of 2021, and 53 for the year.

The median realty purchase price on the Open Market, where prices are generally higher, was £1,228,500, and the four-quarter average was £1,178,256, remaining fairly stable.

Signs are that Guernsey’s property market, while still incredibly busy, is reaching a stabilisation of prices. This means that vendors need to be realistic in their pricing and listen to the advice of their agent; no matter how busy the market is, buyers are savvy and will not overpay when they have a sense of market value.

The post-COVID bounce back over the past 18 months has been remarkable, but perhaps the market is now settling in its very own version of ‘the new normal’.

If you want to take advantage of Livingroom’s experience and market knowledge, whether buying, selling or letting, get in touch with our award-winning team.

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