Guernsey property prices up in third 2024 quarter

Over the past five years, average prices for local market homes have risen by 40%

Average purchase prices for local market properties were up nearly 4% to nearly £610,000 in the third quarter of the year compared with the previous three months, according to States of Guernsey data.

The 3.8% increase compares with a 5.9% decrease in the same period in 2023.

Over the past five years, average prices have risen by 40%.

Transaction volumes also showed an upward trend, with 165 local market transactions in the third quarter of 2024, an increase of 20 transactions from the previous quarter, figures showed.

'Momentum has gathered pace'

Meanwhile, the median price for 16 open market transactions during the period stood at £1,958,288.

Rental prices have continued to climb, with the average rental price for local market properties reaching £2,054 a month - a 4.2% rise from the previous quarter and a 7.6% increase from the third quarter of 2023.

Over the past five years, rental prices have jumped by 47.5%.

Stuart Leslie, head of residential sales at Savills Guernsey, said as 2024 progressed "momentum has gathered pace".

Lower mortgage costs were "beginning to feed through into improved confidence, prompting more sales", he said.

Proposed changes to the UK tax regime for non doms had led to greater activity in the open market.

"We have seen a marked uplift in inquiries from potential buyers in readiness for a possible move as they question whether or not to remain in the UK," he said.

New housing 'imbalance'

Richard Hemans, the Guernsey Institute of Directors lead on economics, said the statistics suggested the housing market might be starting to recover after "reaching its trough" in the previous quarter.

However, Mr Hemans said the most insightful element was the inclusion of new data for the supply of housing in Guernsey, which he said showed "simply not enough" is being built to meet demand.

He added: "Only 61 new housing units have been created over the last 12 months and just 14 in the calendar year to date.

"Given the States target of 300 new housing units a year to satisfy demand, this imbalance is likely to drive prices higher again in 2025, hold back the economy, keep inflation at elevated levels and make life harder for islanders."