Guernsey house prices continuing to rise, but demand for properties drops

The average price of a home in Guernsey has increased, despite market demand falling over the last year.

An average home sold for £638,267 in the fourth quarter of 2022, an increase of more than 51% from five years earlier.

However, only 181 local market homes were sold in the fourth quarter, 53 fewer than the previous quarter, resulting in a 14% decrease.

Last year, 892 'local market' properties were sold, as well as 98 on the 'open market'.

The average renter in Guernsey has also seen increases in monthly costs in local market properties.

Stuart Leslie, from Savills Guernsey, said: “Guernsey’s property markets of the last 12 months have continued to be defined by strong demand versus restricted supply.

"However coming off the back of a record-breaking 2021 – and in the face of significant political and economic upheaval in the UK and abroad – it’s perhaps unsurprising that activity levels have cooled in terms of the number of transactions.

"Interestingly though, sales above £1m increased, possibly indicating less of a reliance on borrowing toward the higher end of the market."

Richard Hemans, IoD Guernsey’s lead on economics, said: "Local market house prices increased by 15.9% year on year, which is the strongest annual growth for many years and higher than the significant rises seen during the pandemic. However, the number of transactions declined by 14% and is now back to pre-pandemic levels. 

"Meanwhile, open market house prices increased by 6%, which is the lowest growth since the pandemic and the number of transactions fell by 23%.

"Guernsey’s housing market remains underpinned by a shortage of supply, strong household finances, the attractiveness of the island and the States population policy."

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