Local Market 2011 review

Guernsey's local property market remains buoyant after a busy 2011. According to Swoffers local market director, Spencer Noyon, local market sales remain a solid investment.

'Even though 2011 felt like a difficult year from start to finish, the bare facts at its conclusion was that market prices generally remained in line with those of 2010, whilst the number of property transactions was up about 6%. In the process, Swoffers enjoyed its best year ever in terms of local market sales,' he said.

‘Although we never really anticipated a buoyant year, it is fair to say that we have been more than pleasantly surprised. The conveyancing court has undoubtedly been busier than any agent could have reasonably predicted. ‘

Across all price ranges we have seen a continuing confidence in the market, against a backdrop of economic difficulties worldwide,' he added.

In 2011 and into 2012 agents are reporting a general shortage of properties in the first-time buyers' sector and beyond – indeed there is very little available to buy up to £400,000 at the moment. Part of this is undoubtedly due to investors having previously bought these properties as a safe haven for their money and the yields are such that there is no incentive for these owners to sell at this time. At the same time, those owner occupiers who might want to move up the property ladder are finding it tough to borrow more money, particularly when they have insufficient equity or savings to make a major move upwards.

'There is still some reticence by banks to lend as actively as they used to and we do not expect this to change going forwards into 2012,’ said Mr Noyon. This low stock level ensured a ‘vendors’ market’ with many properties sold before they reached the market place. ‘As a company we tend to operate best with 200 properties on our books but we have seen this figure as low as 130 this year,’ added Mr Noyon. ‘This is where an estate agent really comes into its own and where expertise and market knowledge takes over. As agents we have been able to associate properties with prospective buyers before we have even taken details or advertised them more publicly.’

At the other end of the market, Swoffers have enjoyed a hectic few months successfully negotiating the sale of several £million-plus sales. During the course of the year, there were over 20 £million-plus local market sales and Swoffers continued their dominance of this area, securing 60% of these deals for their clients.

Property prices have held their own where UK and European prices have faltered, further evidence of just how robust the Guernsey local market remains.

'2012 will, we believe, be a much harder marketplace,' added Mr Noyon. 'There is undoubtedly uncertainty and nervousness as to where the year is going to take us with such big issues globally and locally – in the case of Guernsey we have 0-10 tax decisions to make; Government elections; LCVR challenges; and of course the population review to overcome, all against the backdrop of bigger, economic issues which are beyond our control.'