Average flat price drops by 8% in Jersey

The average price of a one-bedroom flat in Jersey has dropped by 8% over the past 12 months - but two-bedroom flats have increased by 7%.

In the first quarter of 2011 the average price of a one-bedroom flat was £197,000 and £328,000 for two bedrooms.

The average price of a house in the island was still £443,000, over £100,000 higher than in Greater London.

The Jersey house price index measures the average price of one and two-bed flats and two to four-bedroom houses.

Jersey's head statistician Duncan Gibaut said the house price index had been substantially flat over the past three years.

'Buoyant market'

He found that the average price of houses sold in the first quarter of 2011 was the same as the average price in 2010.

Richard Le Ruez, mortgage adviser from Cherry Godfrey, said people were extending themselves and starting with a two-bedroom flat.

He said: "I think there is always a market for one-bedroom flats but there has been a shift in people's view on whether to start with a one-bedroom flat or to try and extend themselves to get on to the two-bedroom flat and avoid moving at a later stage."

Mr Le Ruez told BBC News he thought it was still a buoyant market.

"I think it is, I think people if they are moving are going to be pushed down on the price selling their property.

"But there is an element of negotiation on the property they are buying, so it is still a buoyant market."