The States of Guernsey has released its Residential Property Prices Bulletin for the second quarter of 2022.
The full bulletin can be viewed here but the key points are as follows:
• The mix adjusted average purchase price for Local Market properties transacted during Q2 was £598,963 – 4.5% higher than the previous quarter and 18.5% higher than Q2 2021.
• There were 236 Local Market transactions during the quarter – 37 more than the previous quarter and 61 fewer than Q2 2021.
• The average time between a Local Market property becoming available for purchase and its subsequent sale has been decreasing since Q2 2018.
• The difference between the maximum and the last advertised prices, compared with the final sale prices of properties, was lower in Q2 2022 than in 2020 and earlier.
• The raw median price (realty only) of the 19 Open Market transactions in the quarter was £1,366,843.
• The mix adjusted average rental price for Local Market properties was £1,817 per calendar month in the quarter – 9.3% higher than the previous quarter and 14% higher than Q2 2021.
Richard Hemans, IoD Guernsey lead on economic matters commented: "Guernsey’s housing market remains very strong, with the prices of Local and Open Market properties increasing substantially over the past 12 months. Equally, there continues to be a reduction in the length of time it takes to sell a property and a narrowing of the gap between the final sale price and the maximum advertised price.
"The volume of transactions in local and open market properties has declined over the past 12 months, but this is compared with an exceptional year in 2021, and transactions remain above pre-pandemic levels.
"However, the picture is not all rosy. More islanders are being priced out of the housing market. Employers will continue finding it difficult to recruit because workers coming into the island will struggle to find suitable or affordable accommodation. Higher rents will raise inflation further and put pressure on real earnings and consumer spending.
"The increase in interest rates over the next year will likely soften the housing market but the island remains an attractive place to live and demand will continue to be strong.
"The main issue remains a shortage of housing and therefore supply, so until more properties are built housing will remain a major challenge for the island and the source of many social and economic issues."