House prices: Flat sales soared in last quarter

Thursday 18 May 2017

It’s more expensive to buy a home in Jersey than this time last year, with the average home having risen to £465,000 – but islanders are still better off than living in London.

Statistics released by the States today showed that showed that prices had risen by around 3% compared with last year, following a 13% higher property turnover and market activity picking up by nearly one fifth.

321 properties were sold in the island in the first three months of this year, compared with just 284 in the same quarter of last year.

While numbers of houses sold remained fairly stable, flats saw a huge surge in popularity. 48% more one-bedroom flats were sold in comparison to this time last year, while two-bedroom flat sales rose by 65% - their strongest turnover in recent years.

Statistician Dan Edwards explained, however, that this could be due to a, “…sizeable new development of flats.”

“There’s a sub-plot to this. That chunk from the development could have pushed flat numbers up,” he said.

Pictured: The latest statistics show that islanders were buying more houses than at the same time last year. (Source: Jersey Stats Unit)

According to the figures, Jersey property prices have made a steady rise since a drop in 2014, but only increased 1% in comparison to 2016.

Prices for one-bedroom flats peaked at £230,000 – the highest in recent years – in the final months of 2016, but that price has since drawn back again to £215,000.

Islanders face paying more than £100,000 more for an extra bedroom, with two-bed flats – often popular choice among young professionals – now sitting around £344,000, a level that has largely remained the same since 2012. 

Two-bedroom homes, however, rose above £400,000 for the first time in the latter half of 2014, and have mostly continued around this level.

Three-bedroom family homes are steadily rising in price, however. Islanders are now paying £83,000 more than during the same quarter in 2014, with the average property selling for £541,000.

Pictured: House prices have been steadily rising in recent years. (Source: Jersey Stats Unit)

Those looking for a four-bedroom property will be expected to fork out over £800,000 – a figure that remained largely unchanged throughout 2016, but was a jump of over £100,000 from 2014 prices.

With the exception of London, where the average home costs £476,000, Jersey still far outweighs the south of the UK. South East average house prices sat at £313,000, while South Westerners enjoyed properties at a cost of just £241,000 – 90% cheaper than Jersey.

Mortgage provider Skipton International welcomed the latest house price results as good news for the local property market.

Lorraine McLean, Mortgage Sales Manager, Skipton International, said: “The figures for the first quarter are typically the lowest of the year. Turnover for this period is usually down on the previous quarter, and house prices with it. This is one of the reasons why it is important not to take any quarter in isolation but to consider the bigger picture, which is a better indication of the health of the housing market in the Island.

“Overall, the latest HPI figures show that Jersey’s housing market is continuing to progress, with house prices generally heading upwards. It is, nevertheless, a good time for buyers, as finance remains at very attractive rates.”