Swoffers has weathered various market conditions over the years, but the turbulence brought about by rising interest rates presented particular obstacles in 2023. The housing market faced increased pressure, affecting everything from property demand to mortgage affordability. But as Swoffers’ Open Market negotiator Alex Stuart explains, interest levels from relocators considering Guernsey remains high, and activity levels are increasing again.
Q: What was 2023 like for property sales?
A: Open Market sales were reduced in 2023, indirectly due to increased interest rates and inflation. But enquiries from people wanting to relocate to the island remained high but for some applicants the ability to do so depended on other factors such as selling their existing property or business, which was made more challenging due to the economic climate in the UK. Positively, Swoffers was still responsible for 64% of Open Market agency sales during 2023.
Q: What lessons did you learn?
A: That our unrivalled experience and having the largest team of skilled negotiators is invaluable. It is clear that Guernsey is still an attractive destination appealing to lots of potential relocators; we were in contact and did many viewings with applicants looking to move to Guernsey.
Q: Your sales figures were still remarkable considering the economic conditions, especially in comparison to the rest of the industry. What do you put this down to?
A: On the Open Market, we are a team of five experienced negotiators who work hard for our vendors. We have a substantial number of contacts and good relationships with all intermediaries on the island, which allows us to deal with enquiries across all levels of the market.
Q: What makes Swoffers different?
A: We have a deep understanding of the market we work within, as well as a very powerful website and marketing techniques that enable extensive reach. We are very proud of our global digital presence. Over the last twelve months our website had more than 1,000,000 visits. While modern technology is a great benefit to us, I feel it is important to say that we also still value using traditional techniques and pride ourselves on keeping in contact with our clients and applicants be it by simply having a conversation over the telephone or a face to face meeting.
Q: Does panic ever set in when the market drops? If not why not?
A: I don’t believe panic sets in when a market drop happens. Activity reduces as people take a step back to consider the situation, which is often a global event. Generally, the reasons for market activity reducing affects everyone. Vendors and applicants understand that market activity can be affected by external factors, panic does not set in, but people may be more considered before making moves within the property market.
Q: What have the first few months of 2024 been like for you?
A: The start of 2024 has been positive for us. Once again, we are proud to have dominated the open market and to the end of Q1 we have been responsible for 81% of agency sales, including the most valuable open market sale so far this year. As we head through spring and into summer, we expect activity to increase further.
Q: Why do you think confidence is returning?
A: After the unprecedented levels of activity during and after the covid pandemic, it was inevitable that activity levels would reduce. This reduction in activity was more notable due to the rapid increase in interest rates and inflation last year. Settling interest rates and inflation, and acceptance that rates are unlikely to drop to the ‘artificially’ low levels they were previously, helps confidence return to the market.
Q: As we approach the UK general election has there been more noise from relocators considering Guernsey?
A: Yes, this has been a factor for some of our relocators. Historically, the potential of a change in government to Labour has been positive for Guernsey. We expect enquiry levels to increase this year due to this factor, most likely once a firm date has been set for the election.
Q: How do you see the rest of the year and into 2025 looking?
A: Due to a culmination of the factors that I have touched on already, we are optimistic that the rest of this year will be positive for the open market. Guernsey is still a highly attractive destination for many people seeking high quality of life, safety and security, and a favourable tax position.
At Swoffers, we are always on the lookout for innovative, new ways to provide our clients with the best viewing experience.
We are thrilled to trial our new canine-assisted viewings. We believe that finding your dream home should be a joyous journey, with paw-fessional service. That’s why we’ve enlisted the help of our furry friends to lead the way.
With a canine-assisted viewing (or C-AV) you can be sure to get a better insight into the property you’re viewing, and spot features that can easily be missed by the human eye.
Book a canine-assisted viewing today, by emailing sales@swoffers.co.uk, or give us a call tomorrow on 711766 when are negotiators will be back in after the Easter break.
Watch the video below to see Echo, one of our furry estate agents, in action.
Swoffers sold more Open Market properties in the first two months of this year than any other, with the exception of the post-covid boom.
So far this year there have been nine Open Market agency sales, of which Swoffers was responsible for eight. This is on the back of negotiating 64% of all Open Market transactions in 2023.
With interest rates stabilising, consumer confidence is growing.
‘2024 has started in a very positive manner, and once again we are delighted to have been the dominant agency for Open Market sales, having been responsible for 89% of agency sales so far this year with more sales agreed and a number already signed up for completion,’ said Swoffers Open Market negotiator Alex Stuart.
‘Looking ahead towards Spring, we have a number of applicants planning trips across to view property, together with positive interest levels from within the island. We anticipate this to continue to build over the coming months.
‘We are still optimistic that as we move closer to the next UK general election that the potential of a change of government will increase interest in our Open Market. As ever, our team of five experienced negotiators are here to guide through your property transaction.’
If you are considering buying or selling an Open Market property, get in touch with Guernsey’s most successful estate agents today. Call 01481 711766 or email sales@swoffers.co.uk
Swoffers has had a very busy start to the year, averaging five Local Market sales a week since the middle of January.
Latest statistics from the States of Guernsey confirmed a drop off in the last quarter of 2023, when compared with the same period the previous year. In October to December last year there were 150 Local Market sales – 31 down on the same time in 2022 and 86 fewer than the same period five years earlier.
But, with 25% of those sales during Q4 under its belt Swoffers is optimistic for the year ahead.
‘These figures don’t come as a surprise; it’s what we were seeing on the ground last year. The market peaked in 2022, and then last year the spike in interest rates and a period of economic uncertainty was always going to make it challenging time for the property market. However, the Guernsey property market has always been incredibly resilient, and it’s important to remember property markets are cyclical,’ said local market negotiator Scott Ingrouille.
‘With a longer period of stability with interest rates, it’s been a very busy start to the year. On average, we’ve agreed five sales per week for the last few weeks, and have nearly 40 local market properties under offer, so we are encouraged by what we have seen so far.’
The average local market house price dropped in the last three months of 2023. The average purchase price was £609,362 – down 5.9% on the previous quarter and 4.5% down on the same period in 2022. However, prices remain 47.5% higher than five years previously.
The raw median (realty only) of Open Market transactions in Q4 of 2023 was £1,462,500.
Last year, Swoffers dominated Open Market sales, and was responsible for almost two thirds of all transactions. Open Market negotiator Alex Stuart explained with only a handful of Open Market sales going through across the island in the last quarter of 2023, the average price fell. This, he said, is why it’s important not to view quarterly figures in isolation.
‘Last year was challenging with the volume of sales well down from 2022, but that was always likely to be the case after the unprecedented post-covid years. Swoffers continued to dominate the market with 64% of open market sales,’ he said.
‘It’s been a steady start to the year, with a number of buyers coming over to the island on second and third visits. We are expecting to pick up momentum later in the year as we head towards the election.’
Since the start of Covid-19 in early 2020, the market has been somewhat chaotic. What was initially feared to be a disastrous year for the housing market turned into a record-breaking surge in activity, with 2020 being the busiest year on record. This momentum carried forward into 2021, although during the latter part of 2022 and early 2023, the market returned to more typical levels of activity.
Open for business
Compared to the last year of ‘normal’ activity in 2019, we’ve seen a 16% increase in total Open Market sales by value up to the end of August this year, with an average sale price of nearly £2.1m. The mix of properties being sold has undergone a noticeable shift, with a significant rise in high-value property transactions. Sales of homes priced at £3m and above have increased by 125% since 2019. In contrast, sales at the lower end of the Open Market spectrum, below £1.5m., have slowed. That said, properties below £1.5m. still constitute the majority of sales. It’s only a reduction in the number of properties coming to market at this price that has driven the fall in the number of sales.
Diverse desires for new arrivals
The property needs of our Open Market clients are varied, reflecting the island’s well-balanced property stock. From low-maintenance apartments and townhouses ideal for lock-and-leave lifestyles, to charming rural homes and coastal properties offering scenic views, Guernsey’s real estate landscape has something to offer everyone. While the island’s attractive taxation system remains a significant draw, Guernsey’s appeal extends beyond financial benefits. Many are enticed by the island’s safety, relaxed lifestyle, and convenient access to the UK.
Interest rates and market stability
Guernsey has not been immune to the fast changes in the global economy, but our Local and Open Markets have maintained robust levels of activity. Recent reports suggest that interest rates are unlikely to experience further substantial increases, contributing to greater market stability. As both buyers and sellers adapt to this ‘new normal’, this newfound stability is anticipated to invigorate the property market once again.
A season of opportunity
Autumn is typically a busy period for Guernsey’s Open Market. As the summer travel season winds down and normal routines resume, a surge of interest is expected from individuals seeking to relocate to Guernsey. Notably, this period coincides with applicants aiming to establish tax residency before the conclusion of the UK tax year on 5 April 2024. This heightened activity influences both the sales and rental markets. With the UK’s next general election also on the horizon and the Labour Party gaining momentum, this potential shift in direction for the UK highlights Guernsey as an attractive alternative for many looking to relocate.
Swoffers’ legacy
At Swoffers, we have an unmatched track record with a reputation for expertise and performance in both our Open and Local Markets and we continue to work hard to cement our position as the island’s leading estate agency. Over the past 20 years, Swoffers has been responsible for 58% of all Open Market agency sales and, so far this year, we are pleased to report that our performance has improved further, having completed 66% of Open Market agency sales. Guernsey’s real estate sector continues to be an attractive option for those seeking a vibrant and enriching lifestyle.
As the political landscape in the United Kingdom undergoes a potential shift with the Labour Party gaining momentum, many individuals and families are exploring alternative options for a safer and less taxing lifestyle. Guernsey continues to be a desirable destination for UK residents seeking a fresh start. Swoffers Managing Director, Craig Whitman, delves into our thriving Open Market and highlights the key advantages Guernsey has to offer.
At Swoffers we have an unmatched track record with a reputation for excellence and expertise in both our Open and Local Markets. We continue to work hard to cement our position as the island’s leading estate agency. And I am proud to be able to say that so far this year Swoffers has been responsible for 60% of all Open Market sales. This exceptional achievement showcases our commitment to assisting buyers and sellers in finding their perfect properties on the island.
One of our latest properties, that we are thrilled to have been appointed the sole agency of, is Domaine De La Roche, a magnificent cliff top home. This exquisite property epitomises the luxurious and tranquil lifestyle that Guernsey has to offer. With panoramic sea views and unrivalled privacy, this truly is a once in a lifetime opportunity to purchase a very special home.
Beyond Guernsey’s striking natural beauty, the island continues to entice prospective buyers with its attractive taxation system. Even as individuals and families prioritise safety and security, low taxes also remain a factor in their decision-making process. Our island stands out from our competitors by offering a range of appealing tax benefits, including no capital gains taxes, no inheritance taxes, a flat rate of 20% income tax, and, no Value Added Tax (VAT). The benefits of these low tax financial advantages and individual tax caps, combined with the island’s idyllic setting, makes Guernsey an irresistible option for those seeking a less burdensome financial environment.
Guernsey’s appeal extends beyond UK residents, as we welcome individuals and families from various corners of the globe. Expats from Hong Kong, Dubai, and Singapore have found solace in Guernsey’s stability and inviting lifestyle. Additionally, those hailing from South Africa, New Zealand, and Australia have also recognised the island’s allure as a destination for a fresh start. Our Open Market offers a diverse selection of properties to cater to the unique preferences of all global citizens.
Another key advantage of relocating to Guernsey is the ease of entry. The process of moving to the island is straightforward and hassle-free, all you need is a British Passport or UK Entry Visa. Guernsey welcomes individuals and families alike with open arms, ensuring a smooth transition to their new home and way of life.
Our beautiful island stands out as an ideal choice for many considering an alternative option. Swoffers is pleased to offer a wide selection of property available for sale and rental from stunning coastal properties to beautiful, charming town houses and low maintenance lock up and leaves. Guernsey’s tax advantages and streamlined entry process, presents an enticing reason for those looking to embrace a new chapter in their lives.
To learn more about the relocation process, we encourage you to reach out to our experienced Open Market team at sales@swoffers.co.uk
There was a slight drop in the average purchase price of Local Market properties last quarter, but more properties were sold than during the first quarter of 2023.
The average purchase price for April to June was just under £601,000 – on a par with 2022 and 46.2% higher than the same period in 2018.
Latest figures from the States of Guernsey’s quarterly residential property price bulletin show that the mix adjusted average purchase price for the Local Market properties transacted during the second quarter of 2023 was £600,836, 2.1% lower than the previous quarter, 0.3% higher than the second quarter of 2022 and 46.2% higher than five years previously.
‘These figures reflect what we are seeing on the ground at Swoffers, so this slight fall does not come as a surprise. The increased cost of borrowing, general cost of living issues and shortage of stock have all contributed to the current situation,’ said Swoffers Director Andre Austin.
‘Our lengthy experience tells us that the property market sees these kinds of cycles, and doesn’t indicate any significant cause for concern.’
The mix adjusted price is a measure of the value of the properties sold during the quarter, not a reflection of the values of individual properties nor the change in the value of any one property over time.
There were 175 Local Market transactions during the second quarter of 2023, 62 more than the previous quarter, 61 fewer than the second quarter of 2022 and 8 fewer than the second quarter of 2018.
The raw median price (realty only) of the 20 Open Market transactions in the second quarter of 2023 was £1,633,125, compared with £1,366,843 in the second quarter of 2022. Of those 20 transactions, Swoffers was responsible for 10 of them at an average of £2,704,650 (realty only).
‘Guernsey continues to be an attractive relocation destination and our Open Market team continues to be busy,’ said Managing Director, Craig Whitman.
The cost of rental property continues to rise. The mix adjusted average rental price for Local Market properties was £1,864 per calendar month in the second quarter of 2023, 4.8% higher than the previous quarter, 2.6% higher than the second quarter of 2022 and 42.3% higher than five years previously.
Fewer transactions and a slight fall in the average price of local market property are highlighted in the latest quarterly residential property price bulletin from the States of Guernsey.
The average mix adjusted price of properties sold during the first quarter of 2023 was £613,942 – down 3.8% on the previous quarter and 7.1% higher than the first quarter of 2022.
There were 68 fewer local market transactions in January to March than in the previous period, and 86 fewer than the first quarter of 2022.
‘The figures don’t really come as much of a surprise. It’s well documented the market peaked last year and was always going to cool off,’ said Local Market director Andre Austin.
‘The good news is that there are still plenty of buyers around, the market has just become more price sensitive. We are also starting to see stock levels increase which is great news for buyers.’
The raw median price (realty only) of the 14 Open Market transactions in the first quarter of 2023 was £1,779,375, compared with £1,216,313 in the first quarter of 2022. Rental prices saw a slight increase – up 3.1% from the previous quarter and 7% higher than the same period in 2022. The mix adjusted average rental price for local market property now stands at £1,788 a month.
Andre added: ‘Stock levels on the rental market are still a real concern and this has not been helped by the decision by the States to increase document duty on second properties at the end of last year. The rental market needs buy-to-let investors and they are simply investing elsewhere. We hope the States will reconsider this policy.’
Swoffers has confirmed its reputation as Guernsey’s leading estate agent, with latest figures showing that we are selling more open market homes than all the competition combined.
So far this year in the open market sector, there have been 56 concluded sales, and Swoffers negotiated 31 of them. Our nearest competitor has sold seven.
It means that Swoffers has been responsible for more than four times the transactions of any other agent. We are proud that our experience, expertise, and hard work is allowing us to dominate the open market sector.
Our open market success comes hot on the heels of an independent survey which found that Swoffers is the most recommended brand in the island’s property sector. We were ranked as the top agency regarding values such as trustworthiness, quality service, and giving back to the community.
One of the main attractions of relocating to Guernsey is the island’s favourable taxation system. There are some very enticing tax caps, and there is no capital gains tax, inheritance, wealth, or sales tax.
We have clients on and off island looking to move home. Please contact our team if you are looking at selling or buying, or would just like some expert property advice.
Swoffers continues to dominate property sales on the Open Market.
Latest figures show that out of 26 agent sales so far this year, Swoffers negotiated 14, representing 54% of all agent sales and more than double the number sold by its nearest competitor.
The picture was similar in 2021 too, with Swoffers negotiating half of all open market sales and 57% of all sales of £3m and over.
Traffic to the open market section of our website continues to grow, with more than 30,000 page views so far this year and more than 90,000 during 2021.
‘Despite the pandemic, these last few years have been extremely busy for us, on both the local and open markets. We continue to see a robust rate of enquiries from potential relocators. Our Open Market is resilient and well placed to offer an attractive option in the light of tax and other pressures being faced in the UK and similar jurisdictions,’ said Craig Whitman, director of open market sales.
‘Whilst global conditions remain uncertain, Guernsey as a low tax jurisdiction with a well-regulated finance industry, will continue to attract HNWs looking for an easily accessible location offering wealth and asset protection.
‘In the last few years, we have seen a more diverse selection of relocators, from individuals looking to retire, to young entrepreneurs.
‘Benefitting from good connectivity and the ongoing roll out of fibre broadband across the island, coupled with the benefits of tax caps, low income tax, no inheritance tax, no capital gains tax, Guernsey is certainly a jurisdiction to be favoured right now.’
Craig said that Swoffers’ success as a business was down to a wide range of factors.
‘Namely industry experience – we’ve been doing this for almost 50 years – great local knowledge and contacts, a strong reputation, and active marketing campaigns. Our digital footprint is growing all the time, with the use of clever online advertising.
‘We are also in the process of updating our website which will bring an even greater user experience.’
