Local market properties see prices rise

Average purchase prices for local market properties rose by 2.8%

The average price of a local market house in Guernsey has gone up slightly in the last three months.

Between April and June they were 2.8% higher than the previous quarter, having risen to £596,573.

Over the past five years, average yearly house prices have increased by 29%, the States of Guernsey said.

Transactions also showed an increase, with 195 local transactions during the second quarter of 2025, 50 more than the second quarter of 2024.

In the last year the median prices of 12 open market transactions decreased from £1,803,750 to £1,569,750.

Rental prices increased in the last year, with the mix adjusted average rental price being £2,075 per month in the second quarter of 2025, which was 5.3% higher than the second quarter of 2024.

The average time it took between a local market property going onto the market and its sale was 259 days for properties purchased in the second quarter of 2025.

In the second quarter of 2024 this was 202 days.

Nick Paluch, director in the residential sales team at Savills Guernsey, said the markets have been a little up and down of late

The States of Guernsey said 3.1% of the local market purchases in the second quarter of 2025 had been built in the previous 12 months.

This represents an increase from 2.1% in the second quarter of 2024.

It added the difference between the maximum advertised prices compared with the final sale prices of local market properties was 7.3% lower in the second quarter.

This means when a property was on the market it received 7.3% less than its asking price.

Nick Paluch, director in the residential sales team at Savills Guernsey, said the markets have been up and down of late but there were "certainly signs of resilience, with a slight increase 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.

He added it was worth noting that the price increase was still less than RPI, but was at least a positive step.

Mr Paluch said: "The Open Market has perhaps not been as busy as we would have expected – particularly in light of changes to inheritance and capital gains tax in the UK.

"The Autumn Budget will be important in determining how the rest of the year pans 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 global conflicts also have the potential to knock confidence," he said.

"Consequently, both the Local and Open Markets are likely to be finely balanced as we head into September and beyond. Sensible pricing will remain crucial for securing a sale, while a degree of compromise will also be needed from both buyers and sellers."