Housing market hits busiest level since 2008

Thursday 19 May 2016

Figures in the latest House Price Index show the housing market in Jersey is at its busiest since 2008, despite price drops across most property types.

Market activity for Jersey in Q1 2016 is up 9% on last year, with an 8% increase in transactions, from 260 to 284 from Q1 2015.

House prices in Jersey are up by 2%, with the average property price now £444,000, up from £437,000. This compares to £422,000 in Guernsey and £287,000 in the UK.

The biggest price rises have been for four-bedroom houses, with the mean price of a four-bedroom house up £57,000 on the previous quarter to £828,000 -  an £87,000 rise on the average price for 2015.

Other property types have seen price decreases with the mean price of three-bedroom houses falling £29,000 in the quarter to £516,000, a £11,000 drop on 2015. The mean price of two-bedroom flats dropped £23,000 in the quarter to £320,000, a £12,000 decrease on 2015, while the mean price of one-bedroom flats dropped £26,000 in the quarter to £201,000, £13,000 less than the 2015 average.

Roger Trower, Managing Director, Broadlands, said: “Values have stayed steady for some time and a lot of properties have not changed much in value since 2008.

 “It’s all a question of supply and demand. We are hugely busy at the moment, especially in the £600,000-£1,000,000 bracket where there is a good supply of properties. That is driven by the market from the £400,000-£600,000 properties, and in turn, that is driven by demand for one and two bedroom apartments.

 “A lot of supply has been taken out of the lower end of the market by buy-to-let investors and the market needs a larger supply of purpose-built one and two bedroom apartments.”