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Residential Property in Guernsey - previous headlines
Average Local House Price exceeds £200,000 in 2000
As of the start of January 2001, the average local market house price has exceeded a staggering £200,000 for the first time as calculated by the Housing Authority. Housing President John Langlois described the finding as astonishing and within days the Housing Authority unveiled proposals to recommend to the States, a setting up of a Housing Association. The chance of buying a property is now out of reach of many people. The average of £200,000 compares with the UK's national average of just £86,196.
However local estate agents are predicting that the situation can only worsen and some can forsee the £250,000 figure being not too far away. In 1996 the average was £102,000 but by the start of 1999 had risen to £160,600. In 2000 the increase amounted to 15% against an inflation rate of 4%. Many agents describe the market as difficult because first-time buyer properties in the £150,000 to £250,000 bracket are rising faster than other price brackets.
Full employment, a buoyant economy, relatively low interest rates and high multiple incomes are fuelling the rise in house prices. Many young locally born people are reported to be leaving the island to set up home either in the UK or further afield such as Canada where £75,000 can buy you a substantial property outside of Toronto with a few acres of land. Anyone not employed in the Finance industry is finding it difficult to get on the property ladder.
In 2000, the average price for an Open Market property hit £602,859 and relative to the UK market for comparable properties, represents good value. The most expensive Open market property sold in 2000 was £1,755,000.
Property Sales in 2000
In 2000, a total of 1,195 properties were sold in Guernsey amounting to £273,268,332. Of those 840 were houses, 156 flats, 66 under construction, 41 commercial, 14 glasshouses, 5 other and 73 fields/land. The breakdown by price bracket is as follows::
| £50k to £100k | 243 |
| £101k to £150k | 279 |
| £151k to £200k | 227 |
| £201k to £250k | 154 |
| £251k to £300k | 93 |
| £301k to £400k | 84 |
| £401k to £500k | 38 |
| over £500k | 77 |
2001 House Prices rise by 22%
As of January 2001, the average local market house price exceeded a staggering £200,000 for the first time as calculated by the Housing Authority.
Local market flat prices continue to rise with the average up to the end of May standing at £128,886. The year on year rise is currently 20% and at current rates, a £250,000 average price will be reached by summer 2002.
At the end of March 2001, a record price was obtained for an Open Market House. 'Le Vallon' is a 19th century mock Gothic manor house and estate cottage built in 1660 and there is also a local market cottage. The property sits in 35 acres and is said to have one of the prettiest gardens in the island. The last major Open market sale was Havilland Hall three years ago for just under £5m. Open market sales in January topped £14.66m for just 16 properties.
A development at Charroterie by Dandara Island Homes started in 2001 provided 90 much needed first time buyer one and two bedroom apartments starting at £105,000.
2002 House prices continue to soar
During 2002, local market house prices have continued to soar starting the year at £245,000 and by the end of December had reached £263,000. The average price of Flats rose by £15,000. The 40-year low in interest rates and shortage of property continues to fuel the market.
The old Tudor House site is being developed into offices, two retail units and 18 flats, the whole project costing £6m with completion in 2003.
2003 started with local market prices around £264,000 and ended with the average at £288,000 and flats at £176,000. However it was generally agreed that common sense had returned and it had swayed to being a buyers' market. The highest price ever paid for a local market property occurred in November when La Ferme de Camptrehard in St Andrews fetched £1.56m. The owner of the Open Market property Havilland Hall paid £12.5m to have life enjoyment.
2005 - Average local market price exceeds £300,000
2004 saw local market prices rise modestly from £288,000 to a £294,000 and by the end of 2005, they had just exceeded £300,000. The market moved along at a steady slightly healthier pace and asking prices levelled off and in some cases dropped back slightly. A lack of buyers has slowed down the sales process but realistically priced properties have shifted reasonably quickly.
2006 - Average local market price exceeds £348,000
By the end of 2006, the average house price had risen 10% to reach £348,125 and and the average local market apartment rose 7% to £200,000. Meanwhile the Open Market 4-quarter moving average rose to £751,563. Due to the large variation in prices within this relatively small market, the moving average is the best indicator.