Guernsey Real Estate Prices Increase in 2024’s Third Quarter

The average acquisition costs for local market properties rose by nearly 4% to approximately £610,000 during the third quarter of the year, when compared to the preceding three-month period, according to data from the States of Guernsey. This 3.8% increment contrasts with a 5.9% decline recorded in the corresponding period of 2023. Over the last five years, average prices have escalated by 40%. Transaction volumes also demonstrated an upward trend, with 165 local market sales occurring in the third quarter of 2024, marking an increase of 20 transactions from the prior quarter, figures revealed. Concurrently, the median price for the 16 open market transactions completed during this timeframe was £1,958,288. Rental rates have continued their ascent, with the average monthly rent for local market residences reaching £2,054. This represents a 4.2% rise from the previous quarter and a 7.6% increase since the third quarter of 2023. In the past five years, rental prices have surged by 47.5%. Stuart Leslie, head of residential sales at Savills Guernsey, commented that as 2024 progressed, “momentum has gathered pace”. He attributed this to reduced mortgage expenses, which were “beginning to feed through into improved confidence, prompting more sales”. Leslie also noted that planned alterations to the UK’s tax system for non-domiciled individuals had stimulated increased 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 stated. Richard Hemans, the Guernsey Institute of Directors’ lead on economics, indicated that the statistics suggested a potential recovery in the housing market, following its “reaching its trough” in the preceding quarter. Nevertheless, Mr. Hemans highlighted that the most revealing aspect was the incorporation of fresh data concerning Guernsey’s housing supply, which, in his view, demonstrated that “simply not enough” is being constructed to satisfy current demand. He further added: “Only 61 new housing units have been created over the last 12 months and just 14 in the calendar year to date.” Considering the States’ objective of 300 new housing units annually to meet demand, this disparity is anticipated to push prices upward once more in 2025, impede economic growth, sustain high inflation, and exacerbate difficulties for residents. For updates, follow BBC Guernsey on X and Facebook. Story suggestions can be sent to channel.islands@bbc.co.uk. This content is copyrighted by BBC 2024. All rights are reserved. The BBC disclaims responsibility for the material on external websites. Information regarding our policy on external links is available.