The quarterly residential property prices bulletin has been released and it makes interesting reading for both the Open and Local Market.
The average Local Market purchase price appears to be levelling out, with a slight fall of 0.6% in average prices (£550,893) compared to the previous quarter. Such was the increase in average house prices over the previous 12 month, this still represents an increase of 11.7% compared to Q4 in 2020.
There is further evidence that the market may be starting to slow down with 30% fewer local market transactions taking place in in Q4 compared to the previous quarter, and 42% less transactions than the same period last year.
Andre Austin (Local Market Director) remarked “In truth we expected there to be a slowdown in transactions, especially year on year. The bounce back from the two periods of restrictions during the pandemic was record breaking and unlikely to be sustainable. House buyers are facing new challenges with recent increases in interest rates and hikes in energy bills, all will undoubtably be a factor for those looking to purchase a new property”
However, Andre is keen to highlight that the market is still buoyant “we are still experiencing extremely high demand for properties and have a number of potential buyers waiting in the wings for the perfect property to come on the market. Figures show that sellers are getting sales much closer to their asking price than previous years and that’s something we have been experiencing with our vendors”.
This point is further backed up by the fact that time between properties appearing on the market and subsequently being sold continues to decrease, meaning buyers are having to be quick if they are to secure their next property.
The Open Market saw a total of 35 properties sold in Q4 for an average price of £1,584,375 which is a significant increase on the previous quarter (14.9%) and resulted in the average medium across the whole of 2021 being 12% higher than that of 2020.
Craig Whitman (Open Market Director) commented that “Guernsey is an increasingly attractive place for buyers looking to relocate to. The unpredictable nature of the last two years has seen a sharp increase in interest from those looking to settle on the island and that trend looks set to continue in the New Year. As an agency we have continued to dominate in this space, with 50% of all Open Market sales being facilitated and executed by Swoffers in 2021”
To read the full bulletin click here
Local market house prices have risen by 19% year-on-year.
The latest Guernsey Residential Property Bulletin, for the third quarter of 2021, shows the mix adjusted average house price at the end of September was £554,290. It has to be noted that the mix adjusted price is a measure of the value of the sales during the quarter, not a reflection of the values of individual properties.
Compared with the previous quarter, the average price has risen by 9.6%.
‘Whilst these sound like big price increases, there are a number of factors that affect the mix adjusted average price. A number of high value transactions can skew the overall final figures somewhat. For example, last year there were around 35 Local Market sales over £1m and this year we are already over 60 and counting,’ said Local Market Director, Andre Austin.
‘It was widely anticipated these figures would be high because of the unprecedented level of demand and extremely low stock levels. We expect the last quarter to be a little quieter as we move into the winter, and going into 2022 we hope to see increased stock levels across all markets to satisfy demand.’
There were 285 Local Market transactions between July and September – 12 fewer than the previous quarter and 8 more than the same quarter of 2020. On the Open Market, there were 36 sales in the third quarter of 2021. The raw median price (realty only) of those Open Market sales was £1.35m.
‘Demand remains high and we expect that to continue into next year. Guernsey is clearly becoming an increasingly attractive relocation destination,’ added Open Market Director, Shauna Clapham.
Properties sold more quickly in Q3 than in previous quarters. This has been a developing trend for the last few years.
‘It comes as no surprise to us to hear that the average time between a property becoming available for purchase and the time of its sale has been decreasing. The shortage of stock has meant that people have become much quicker at making their decision to buy, due to a fear of losing out to another buyer,’ said Mr Austin.
The mix adjusted average rental price for Local Market properties was £1,599 in the third quarter of 2021, 0.4% higher than the previous quarter and 16.2% higher than the third quarter of 2020.
While 2020 was one of the most difficult any of us will remember, the housing market in Guernsey thrived. Latest property sales figures show that just short of 100 open market properties were sold during the year, of which Swoffers sold 53%.
There were 1,017 local market houses sold in 2020, with Swoffers selling one in four.
‘After a cautious start, come May and June it just went crazy with huge numbers of viewings on individual properties and quite often people offering on the spot for fear of missing out. Every level of the market was busy,’ said local market director, Andre Austin.
On the open market, sales were even made unseen; while the business tunnels were in operation Swoffers did eight visits, of which six resulted in offers on the day.
‘It’s clear that Guernsey’s handling of the pandemic has further enhanced our reputation as a safe haven, and as soon as the current travel restrictions are eased we are optimistic about 2021,’ added Shauna Clapham, open market director.
‘While stock levels are challenging, tax advantages are clear. The safe, stable environment is a huge draw, and we expect the latter part of 2021 to be a bumper one.’
Click here to read our latest Open Market newsletter.
Swoffers is delighted that people from outside of the island can now view properties in Guernsey without the need to quarantine, under the States of Guernsey’s business tunnel arrangement.
From next Tuesday (28 July) people will be able to come to the island on a day trip from Southampton, on Tuesdays and Thursdays, on board planes operated by Aurigny.
Swoffers’ Managing Director, Craig Whitman, welcomed the move, which he said could only be good for Guernsey.
‘The island has been covid-free now since 27th May and as we don’t need to social distance anymore or wear masks, the island is an extremely attractive proposition for those looking to relocate their families, or to retire. Coupled with the quality of life we enjoy here, the low-tax regime and minimal crime, there has rarely been a better time to attract people looking to relocate,’ he said.
Under the business tunnel arrangement, travel to and from the airport hangars or terminal building must not be on public transport. Social distancing of one metre must be maintained at all times and contacts must be recorded for tracing purposes and should be minimised. Passengers must wear face masks as they pass through the airport and in the transport to their viewing or meeting. Business tunnel travel must be applied for.
People looking to benefit from the business tunnels initiative will need to contact Swoffers, who will then notify the States of Guernsey providing the relevant information for review to ensure that all legal requirements for use of the business tunnels are met against a set of criteria. Further information can be found here: https://www.swoffers.co.uk/guernsey-properties-are-open-for-viewings/
For information on relocating to Guernsey click here: https://www.swoffers.co.uk/relocating-to-guernsey/
The recently published Q4 property prices bulletin confirms that 2019 was a busy year on both the local and open markets.
The total number of local market sales in 2019 was 845, 35 more than in 2018 and the highest annual total since 2007.
‘Swoffers had a record year in 2019 and that trend is continuing in 2020,’ said Scott Ingrouille, local market sales negotiator.
‘January and February have been extremely busy both with sales and new instructions and buyers need to be quick, as well-priced family properties are not hanging around long. The best thing to do is register with Swoffers and you will receive all the latest news and properties straight into your inbox.’
In the fourth quarter of 2019, the two-bedroom house category had the highest proportion (18%) of transactions. Three-bedroom bungalows were also popular, representing 15% of all sales.
‘In our experience there is still a big demand for larger family homes. We have a number of people looking for three and four bedroom properties but at the moment there is limited supply,’ said Scott.
The average sale price of a property is not necessarily a clear indication of the performance of the market, but the mix-adjusted average purchase price for local market properties was £441,295 in the fourth quarter of 2019, 3.5% higher than the previous quarter and 0.8% higher than the fourth quarter of 2018.
It’s been a solid start to the year on the open market too, with 10 sales in January, eight of which were sold by the Swoffers team.
You can read the full Guernsey Residential Property Prices Bulletin online
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.’
With all the political uncertainty, both in the UK and further afield, it’s safe to say that Guernsey remains an attractive jurisdiction to settle in.
The island not only offers favourable tax options when relocating but provides a wonderful lifestyle and quality of life that rivals most other jurisdictions.
It’s a safe place to live; it’s a secure and stable jurisdiction. The island is very welcoming. It’s easy to relocate to; it’s as simple as just buying or renting a home. It has an entrepreneurial culture and is a great place to do business.
Clients who have moved to Guernsey tell us it is a real hidden secret!
But how do we get that message across to a global audience?
The team at Swoffers is always looking for new ways to spread the word about Guernsey and highlight our vendors’ homes so they are seen by as wide an audience as possible, all over the world.
We have been working with our digital marketing partners on some innovative ways of targeting potential buyers and relocators in the UK and Europe and as far afield as the Far East and Arabia. As a 100% locally owned company we certainly punch well above our weight when compared to our international rivals.
But we’ve taken it one step further by joining delegates from Guernsey Finance on a recent We Are Guernsey marketing trip to areas where ex-pats are living and might be considering a move closer to home.
Swoffers Managing Director, Craig Whitman, travelled to Singapore, Hong Kong and Dubai for a series of Private Wealth roadshows, presentations and meetings.
‘I was immensely proud to be promoting our Open Market and everything that Guernsey has to offer to a global audience including private wealth managers, lawyers, trust professionals and potential investors and relocators,’ said Craig.
‘I really didn’t know what to expect but the response has been phenomenal. So many people were impressed that we were out there in person and were interested in talking to me and finding out more about what the island can offer both them and their clients.’
Craig attended the STEP Asia Conference in Singapore where We Are Guernsey exhibited and, together with delegates from Investec, Walkers, Cazenove Capital and Collas Crill, hosted a lunchtime presentation about private wealth structures, investments and the island as a potential new home for both clients and their businesses.
‘It was the first time an estate agent has joined one of these marketing trips and it gave me the opportunity to talk about what Swoffers does, why we are the leading property specialists in Guernsey and how we can help anyone looking to relocate,’ said Craig.
‘Our message was that although there’s competition from other jurisdictions, Guernsey’s wealth of experience in the offshore arena stands us in good stead as a reliable, safe and stable jurisdiction to do business, and to buy a home. That message was well-received.’
The next stage of the trip to Hong Kong was also successful although interrupted by some of the political unrest that has recently troubled the region.
‘We still managed a pretty full schedule of individual and group meetings,’ said Craig.
‘I was delighted to meet with representatives from the British Chamber of Commerce, the Hong Kong Chamber of Commerce and various businesses and professionals representing high net worth clients. It was great that Jo Stoddart from Locate Guernsey was able to join us for this part of the marketing trip. Together we were able to give a full picture of the advantages of a move to Guernsey ranging from its tax benefits to its great work:life balance.’
After five days in Hong Kong the delegation moved on to Dubai for the STEP Arabia conference and another round of presentations and meetings.
‘I made some more great connections in Dubai and together with representatives from Beauvoir Trustees, Walkers and Skipton International we hosted a really well-received presentation raising awareness of what Guernsey can offer in terms of investment but also as the perfect destination to move your business and your family to.
‘Swoffers already commands more than 60% of all Open Market sales and 2019 has been another busy year with new enquiries from potential buyers in both the UK and further afield. But we can’t just assume that this will continue. We believe in continuing to invest in our brand, continuing to promote Guernsey and all it has to offer and exploring innovative ways to do this,’ says Craig.
‘But sometimes just sitting down and talking to people is the best way to get our message across and this was certainly true of my recent successful trip to the Far East and Dubai. This was the first time that Swoffers has ventured so far, but it definitely won’t be the last.’
Guernsey stands to benefit from the uncertainty and chaos being experienced both in the UK and further afield.
As the island’s leading property professionals, Swoffers has seen continued interest from new clients looking to move to the island, echoing Deputy Gavin St Pier’s view that the island stands as a ‘rock of granite stability’ in the ‘boiling, angry, sea of turmoil that is UK politics today’.
‘We have certainly seen an increase in enquiries from people looking to relocate and not just from the UK,’ said managing director, Craig Whitman.
‘The fact that Guernsey is such a stable, vibrant jurisdiction; that we are open for business, that we are easy to relocate to and that we have a wide range of affordable properties available to buy or rent means we are attracting lots of interest.’
He added that the threat of a general election and some of the statements currently being made by the Labour Party about what they might do if they were in power has also caused concern amongst high net worths living in the UK.
‘Some are looking to make the move now and not wait for what might or might not happen next,’ said Craig.
‘Where we have seen the biggest explosion of interest is in Open Market rentals. People want to move quickly to take advantage of what the island can offer and then have time to look for their permanent home once they are on-island.’
Deputy Gavin St Pier advised the States this morning that the island was well prepared for whatever the Brexit outcome stating: ‘We have daily contact with departments across Whitehall and meet with colleagues once a week.’
He acknowledged that ‘the current political situation in the UK is unprecedented. It is turbulent, uncertain and its institutions are clearly highly stressed.’
‘Guernsey’s political situation is completely the opposite, and that’s why we offer such an attractive alternative,’ said Craig.
The last year has seen an upsurge in interest in Open Market properties in Guernsey and Swoffers has had one of its busiest periods for many years with a significant increase in sales in the last quarter of 2018 and early part of 2019. A substantial number of sales involve people relocating to the island for the first time.
‘There are many reasons why people are choosing to come and live in Guernsey,’ says Craig Whitman, Managing Director of Swoffers.
‘In general terms, it tends to be a combination of things. Some clients have told us that the uncertainty in the UK over Brexit is what is driving them, whereas others are attracted by the Island’s quality of life and security.
‘Guernsey’s position on the doorstep of Europe with good connections to the UK makes us particularly attractive, as does the island’s reputation as a well-regulated, stable jurisdiction,’ says Craig.
‘It’s also easy to make the move to Guernsey; we have simple entry requirements for new residents and offer a number of incentives for those relocating.
‘It is impossible to say whether Brexit will be good for Guernsey in the long run but right now our message to anyone thinking of relocating, for whatever reason, is take a close look at what Guernsey offers. The experienced team at Swoffers is ready to help you find your perfect island home.’
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.’
