Local Market property sales in 2019 were the highest since 2007 according to the latest figures from Unusualities of Guernsey, an independent compiler of local conveyancing statistics.
Local market sales were up by 51% on 2015 – the height of the financial crisis. In total, there were 879 local market sales in 2019 – 34 more than in 2018, equating to an annual rise of more than 4%.
‘It has been a record year for our Local Market sales team,’ said Spencer Noyon, Swoffers director and local market negotiator.
‘The market picked up in 2018 and this has continued throughout the last 12 months. Every indication is that this level of activity will continue as long as we see a good supply of sensibly-priced properties coming to the market for sale.’
Within the open market, Swoffers negotiated the top ten most expensive individual sales in 2019 and already has a good number of sales due to complete in January. There were 71 open market sales in 2019 compared to 75 in 2018, and the proportion of high value properties sold was high. There were 25 Open Market sales over £1.5m of which 18 were over £2m, confirming renewed interest in relocating to Guernsey.
‘The turbulent political situation across the water in the UK has certainly influenced a number of new clients who have moved to the island in the past year,’ said Shauna Clapham, Swoffers director and open market negotiator.
‘Although Guernsey continues to be somewhat of a hidden secret, we have been continuing to target potential buyers and relocators through our innovative use of digital marketing and by joining delegates from Guernsey Finance on a recent We Are Guernsey marketing trip to Dubai, Singapore and Hong Kong.
‘We are optimistic for 2020 as we have sales in the pipeline and offers being considered. Guernsey’s stable tax regime and well-regulated, supportive business environment are important factors in the decision-making of relocators along with the island’s safety and security.’
Swoffers’ lettings and management team has also had a record-breaking year as the rentals market remains strong.
‘We have grown our property management and lettings team over the last year to cope with the increased level of demand and are proud to have the largest and most experienced team of property professionals to look after our clients’ needs,’ said Andy Biggins, Swoffers director and property manager.
‘The rentals market continues to be very busy with quality, well-priced properties being snapped up within 24 hours. Renting out property remains a sound investment and we expect 2020 to continue to be busy.’
Guernsey’s latest budget proposals are unlikely to have a negative impact on the current high levels of activity in the Local Market.
‘We’ve just had a record third quarter at Swoffers, and there’s every indication these activity levels will continue despite the increases in TRP being proposed in the 2020 budget,’ said Swoffers director, Spencer Noyon.
Domestic and land TRP tariffs are set to increase by 10.2% next year in line with the previously approved States strategy.
The States will also consider options to further increase domestic TRP on larger properties or commercial premises, or a combination of both.
‘Whilst the increase in TRP may impact some households, particularly perhaps older people who live alone in a large family property, in general terms I don’t think the increase is going to put people off buying their dream house,’ said Spencer.
‘An interesting recommendation in this year’s budget is the introduction of equity release mortgages. This is when a homeowner can access the equity tied up in their home whilst retaining ownership by borrowing against the security of their property. The loan amount and interest accrued are paid back when the property is sold, when the homeowner dies or moves into long-term care. The introduction of this sort of mortgage product in Guernsey requires a change in the law and also sufficient safeguards in place which may take some time to implement. Interest rates are also bound to be much higher for this sort of borrowing.’
Swoffers’ partner mortgage broker, SPF Private Clients, has also welcomed the move and suggests that people interested in an equity release mortgage are likely to be older borrowers who are asset rich and cash poor.
‘Anything that provides Guernsey people with another way to stay in their homes and be better off in their later years, should certainly be considered,’ said Pierre Blampied, managing director, SPF.
‘However, this type of product is highly regulated in the UK, and a key factor is ensuring that borrowers fully understand the impact of ‘roll up’ interest. It is good to see the regulation aspect being referred to in the budget.’
Spencer added: ‘In general terms I don’t think those looking to buy or sell their homes have much to worry about in next year’s budget. The market continues to perform well, especially at the first time buyer to mid-range property level. It’s a great time to think about a move so why not contact us to discuss your requirements.’
Swoffers has joined the growing number of islanders switching from petrol cars to electric as Director Spencer Noyon recently took delivery of the company’s first e-car.
‘I have been considering an electric car for a while and when I found out that Volkswagen had launched an e-Golf I was very keen to give it a try,’ says Spencer.
‘Louise Packham from Jacksons was fantastically helpful in sourcing the right car for us and as soon as I tried the e-Golf I knew it was the right vehicle for our business.
‘As sales negotiators we are out and about for most of the day and so having an efficient but comfortable car is really important. But we can also drive quite a long way during the course of a day and I was worried that an electric car might not manage such a full day on a single charge. The e-Golf can do over 140 miles on a single charge and that’s plenty for our island roads and so even the busiest day shouldn’t be a problem. It’s also extremely cost effective as it costs around 4p per mile compared with around 14p for the petrol equivalent – and I just plug it in to a standard socket to charge at the end of the day.
‘We believe Swoffers is the first company in the Island to own an e-Golf and if the last couple of weeks are anything to go by, I’m sure it won’t be the last electric car we run,’ says Spencer.
Local market property transactions in the second quarter of this year have been the highest for seven years.
There were 228 sales during Q2, 51 more than the previous quarter and 45 more than the same quarter of 2018.
Three-bedroom bungalows and houses accounted for 16% of all transactions – the highest proportion of all property types. The distribution of sales in the second quarter shows a peak in the £300,000 to £399,000 category.
“These figures reflect a busy 2019 for our Local Market sales team at Swoffers,” says Director, Andre Austin.
“We have certainly noticed an improvement in the market with well-priced properties selling quickly and more people looking to put their properties onto the market and move up the property ladder or downsize to something more manageable. Property investors are also more active with a strong rental market encouraging sales.”
The average purchase price for Local Market properties was £427,893 in the second quarter of 2019, 0.6% higher than the previous quarter and 4.2% higher than the second quarter of 2018.
“Average property prices are not the best indicator of the strength of the market, but the top end of the Local Market has been a bit sluggish so far this year. Once there’s a bit more certainty about the outcome of Brexit we may see this improve,” says Andre.
Open Market sales remain consistent with 12 transactions in quarter 2 compared to 14 in the same quarter of 2018.
Swoffers has expanded its Lettings team to help cope with demand in the sector.
‘We are really pleased to welcome Demi-Lee Dawson to our busy Swoffers team,’ says Ross Yeates, Manager – Lettings and Property Management Department.
‘The rentals market is extremely busy at the moment with new properties often being snapped up within 24 hours. Expanding our team of lettings negotiators means that we are better able to serve both our existing and new clients in such a fast-moving market,’ says Ross.
Demi joins Swoffers after working as a travel consultant for the last three years and she says she has always wanted to work in property. ‘I am looking forward to learning the ropes from my very knowledgeable team and I am enjoying getting out and about learning about the different properties we currently have to let and meeting some very lovely people,’ says Demi.
It’s been an exciting month for Swoffers clients Michael and Sally Parks.
Not only did they agree the sale of their house just a matter of days after it went on the market, but they have also just been announced as winners of the Swoffers ‘List to Win a Holiday’ prize draw. The couple wins a £3,000 voucher from World Travel to spend on a holiday of their choice.
‘We were amazed, shocked and delighted when we found out we had won,’ says Mrs Parks.
‘We haven’t decided yet where we are going to go as we want to get the house sale agreed, but we are hoping to have some autumn sunshine; maybe Barcelona or Croatia – somewhere with some history and culture as well as sunshine.’
Mr & Mrs Parks praised the work of the Swoffers team in managing their house sale. They were particularly surprised at the immediate impact posting the property on social media had with their property receiving lots of interest.
‘We have been very impressed with the professionalism, friendliness, approachability and most of all the enthusiasm of the Swoffers team,’ says Mrs Parks.
‘More than 500 people were eligible to win our competition and Mr & Mrs Parks were the first names out of the hat,’ says Swoffers Director Andre Austin.
‘We are delighted for them and hope they thoroughly enjoy their chosen holiday. We know that buying or selling your home can be a stressful experience but the team at Swoffers is always ready to answer any questions or help in any way to make the whole process as stress-free as possible. Just pick up the phone or send us an email and we will help you find your perfect home.’
Pictured above Swoffers Local Market Negotiator Scott Ingrouille hands over the prize holiday to winners Michael and Sally Parks.
It’s good news for buyers and sellers across Guernsey’s Local and Open property markets as sales continue to be buoyant in the first quarter of 2019.
Figures compiled independently by Unusualities of Guernsey, reveal sales activity in the Local and Open Markets was at its highest first quarter levels since 2011 and 2007 respectively.
There were 193 Local Market houses and flats sold in the first quarter of 2018, up from 151 for the same period last year and one fewer than the 194 recorded in the first quarter of 2011.
‘The team at Swoffers has had a really busy start to 2019, continuing on from last year, as we are starting to see increased confidence in the property markets,’ says Swoffers Director, Spencer Noyon.
‘We are seeing cash buyers who temporarily moved into rental accommodation now stepping back onto the property market and increased demand generally across all sectors.
‘The problem now is one of supply and demand as sales stock isn’t being replenished quickly and new-builds are not catering for all areas of the market,’ says Spencer.
The newly published statistics for Q1 also indicate an increase in the median price for both houses and flats on the Local Market.
‘It’s difficult to draw any meaningful conclusions from the average prices published in the statistics but I would say that in general terms we are looking at an uplift of circa 3-5% over the last year.
‘However, prices are probably back to levels seen in 2011-2012 following falls over the last few years.
‘We should remember though that people are looking to buy and sell in the same market and are generally looking for a home rather than an investment and so important factors for vendors to consider are pricing your property sensibly, presenting it well and being flexible about viewings. The experienced team at Swoffers are here to provide help and guidance through every step of the buying or selling process and aim to try to make it as stress-free as possible.’
For the Open Market, Unusualities of Guernsey recorded 19 transactions in the first 3 months of 2019, which is seven more than the first quarter of 2018 and the highest total for a first quarter since 2007.
‘We are continuing to build on a successful 2018 and interest remains high from people looking to relocate to Guernsey for whatever reason, be it lifestyle, business or the stable, secure environment the Island offers,’ says Craig Whitman, Swoffers Open Market Director.
‘Swoffers remains the number one agent of choice for buyers and sellers in both the Local and Open Markets and we always strive to deliver a high-quality, knowledgeable service and, of course, make sure we find people their perfect home.’
With the Gibraltar Island Games fast approaching and the domestic basketball season about to begin, Swoffers has announced it has signed up to be the individual sponsor for Island coach and local league player Adam Farish.
‘As Guernsey’s largest and most established estate agency we are always keen to support the local sporting community whenever we can,’ said Swoffers Director Spencer Noyon.
‘Adam’s long-standing dedication to Island basketball deserves to be recognised and we hope that our support will allow him to not only lead the Guernsey team to great things in Gibraltar but also help with the preparations for when the Island Games returns to Guernsey in 2021.’
Adam is delighted to receive Swoffers’ support.
‘The sponsorship of each individual player and coach in the men’s squad will help Guernsey Basketball raise much-needed funds and keep a high profile in the run-up to 2021,’ said Adam.
‘Each player/coach will have an online profile celebrating the player’s performances in local league games, inter-insulars and the Island Games themselves so Swoffers will be able to keep tabs on me and make sure I’m performing well! We hope that other sponsors will sign up to support individual players to help Guernsey Basketball continue to aim high.’
Swoffers are delighted to be a part of the journey and wish the team the best of luck in the future.
The Environment and Infrastructure department have issued a policy letter which promises to create a new Housing Strategy in two years. The strategy will use the findings and recommendations set out in a report produced by KPMG two years ago when the States were originally directed to produce a strategy.
Swoffers welcome the work taking place and believe there are many positives that will come out of it. However, there is concern over the amount of time this is taking while the housing market continues to underperform in some areas. In particular, first time buyers who are trying to get on the market can’t raise deposits and are sometimes left with no option but to leave the island in search of affordable housing.
Watch our video below to hear Director Spencer Noyon’s response to the publication of the Policy Letter published today (12/06/18).
Local Market
Hard negotiating, realistic pricing and high stock levels dominated the local market in 2014 but the experienced team at Swoffers can report a record year in local market sales. We started 2014 as a team of four, increased our numbers with a fifth negotiator and have had no choice but to recruit a sixth dedicated member of staff this year to answer demand. 2015 has started with the same gusto and we would predict a similar level of activity, plenty of new instructions and maybe even a further correcting of the market and a similar number of sales across all levels.
Early signs are good – as we write Swoffers already have 25 local market sales agreed awaiting contract and there are still 10 days of January remaining.
While the island witnessed a correcting in prices in 2014, what was a buyers’ market also became an opportunity for realistic vendors to approach their ongoing purchase with the same levels of negotiation. While many found that they may have greatly needed to reduce the price of their own property in order to sell, a similar discount on their new home meant they were able to get their dream house and still end up with the same net gain/spend as they had envisaged when they set out on their search.
Across the island the number of sales were down by about 16 per cent on 2013 – about 650 sales compared to 770 – and were indeed at their lowest level since the turn of the Millennium. The misleading headline figure for the average value of properties has been reported as increasing slightly in the last 12 months – in reality it was the higher number of £1m.+ sales in 2014 that artificially increased the average house price. Our experience of the market would suggest that properties over £1m.+ have fallen in the region of 10 to 15 per cent in the past 12 to 18 months, while further down the ladder property prices have at least dropped to the tune of a minimum of five per cent.
In 2014 there were 31 sales over £1m. – more akin to the figure of 35 sold in 2012 – and this was a large improvement on the 19 sales at this level in 2013. Swoffers were responsible for about 70 per cent of these £1m. + sales by value in 2014. Swoffers were also responsible for four out of five of the £2m. + sales in 2014.
This islandwide figure is even more encouraging when you bear in mind the very genuine Open Market options that are also available to local market residents looking in this price range. With such a close price correlation between markets, Open Market properties are a tempting proposition for many and there are many potential local market residents prepared to explore both markets.
Overall, there are definitely encouraging signs, however, perhaps most importantly a realisation from vendors that the Guernsey Local Market is not exempt from falling house prices. With this understanding, vendors have been forced to accept realistic values and market aggressively in order to make their properties stand out. Stock levels are high and at the time of writing Swoffers Local Market has access to circa 400 properties, nearly twice the levels of four or five years ago.
More positive news, there is clear evidence that banks are lending and for the first time purchasers have plenty of options and can take their time to view many houses and make an informed value for money decision. It is a time when experienced negotiators come to the fore and for this reason Swoffers remain confident of their continued success in a Local Market they dominated in 2014.
Open Market
Swoffers continued to dominate the Open Market in 2014 and enjoyed their most successful year since 2007.
Swoffers were responsible for 75 per cent of sales by value including a number of confidential instructions, an approach which many of our Vendors have embraced – a no-nonsense way of selling homes with minimum fuss and total discretion.
The market had a fantastic start to 2014 with seven property sales totaling £24.5m. in January alone.
Homes that sold in 2014 ranged from modest terraced homes to luxury apartments and superb residences nestling in substantial grounds.
The number of properties coming to the market continued to increase throughout 2014 which has given potential purchasers a wide selection of homes to choose from. These buyers had a choice of quality, variety and price ranges and we feel this will continue during 2015. Les Residences, a luxury development on the West Coast, is due for completion in the spring of 2015 and has been launched exclusively via Swoffers. One St Julian’s Avenue, a Town development completed last year, has two remaining Open Market units for sale. These high end developments are situated at opposite sides of the island and both offer superb sea views and either an enviable sunset or a glorious sunrise.
The increase of new instructions last year had the opposite effect for vendors. Whereas a number of years ago there would have been less than 100 properties on the market at any given time, that number has swelled to more than 200. Vendors needed to make speedy decisions when receiving an offer in order to secure a successful sale and also show flexibility regarding price, something which we feel will continue in 2015. Sales were consistent throughout 2014, although there was undoubtedly increased momentum and activity in the second half of the year.
We have also had quality enquiries of potential buyers considering the move to Guernsey and we are confident that these will convert into sales in 2015. As a UK Election looms, we are anticipating an increased demand from those looking to relocate from the UK. We were also encouraged by the number of people returning to the island.
Rentals
Overall, quarters one and two of 2014 were marginally down on those of the same period in 2013, although activity seemed to remain at the same level on the Open Market with the higher end being more active. In the same fashion as 2013, the final two quarters of 2014 saw an increase in both Local and Open Markets contracts, across all levels.
The continuing improvement of the UK economy has had a positive effect on the local rental market. There was quite clearly an increase of rental agreements completed for licence holders. This consequently led to more activity at the middle and upper end of the market, with family homes becoming much sought after.
2014 saw a general increase across the board of properties available to rent, none more so than apartments. This trend seems to have continued into early 2015 with over 50% of properties currently available from this sector.
Last year also saw a good number of new enquiries from overseas on the Open Market. What is also promising is to see the volume of leases extended in this market, proving that Guernsey is becoming a place one can call home for a good period of time, particularly from UK based families and individuals. Over 40 Open Market houses were let by Swoffers in 2014, proving similar levels to those of 2013. Yet again we have seen the lower to middle sectors proving busy, predominantly being rented to sharers.
Commercial
In 2014 Swoffers Commercial achieved the largest office letting in Guernsey since 2008 by successfully negotiating the assignment of 26,000 sq.ft of prime office space at Trafalgar Court. The sector as a whole saw completed office transactions up 44% when compared to 2013. Activity in the market was not just restricted to the office sector however, the investment market was very active in 2014. We experienced increased demand for good quality investment property and the year saw demand outstripping supply in this sector.
This trend looks set to continue in 2015, already we have seen an increase in enquires across all sectors indicating an even brighter outlook for commercial property in the year ahead. This has been driven by positivity in the UK economy, with GDP returning to pre-crash levels and falling unemployment. The growth in the economy looks set to continue which in turn drives the demand for good quality office space. With no significant developments currently under construction and very little prime office space available the question is will we find ourselves in a position to meet the demand from tenants in 2015?
