The Jersey Property Market: What’s The Outlook For 2023? – Real Estate

Jersey’s economy has been somewhat cocooned from the impact
of events occurring in Westminster and beyond. However it has not
been without impact on the local property market.

The island has witnessed considerable supply and demand issues
in property and, while statistics are not yet available for the
last quarter of 2022, the third quarter clearly indicates that most
price brackets have seen a significant increase in the purchase
price of property.

One-bedroom flats recorded a mean sale price of £370,000
(an average increase of £17,000), two-bedroom flats a mean
sale price of £557,000 (an increase of £21,000) and
three-bedroom houses – representing the much sought after
‘family home’ – a mean sale price of £904,000 (an
average increase of £51,000). Interestingly, the purchase
price of two-bedroom houses fell by £32,000 from that of the
previous quarter, and the slightly higher bracket of four-bedroom
houses remained on average unchanged at a mean sale price of
£1,329,000.

Which leaves the burning question: what is the outlook for
2023?

Jersey is experiencing a knock-on effect from the Bank of
England’s base rate which has gradually increased over the
course of the past twelve months. While mortgage providers have not
increased their mortgage rates at the same level as the Bank of
England, it has caused the movement of property to slow
significantly.

This is not necessarily a negative standpoint for the local
property industry. We should expect to see purchasers who are
looking to buy property in the next year or so having to adjust
their expenditure and lifestyle to account for more expensive
monthly mortgage payments, and lower income multiples. Meanwhile,
investors will need to account for the newly introduced rates of
stamp duty and land transaction tax for property that will not be
owner-occupied (for example buy to let properties, second homes),
which represents an increase of 3% above the standard rates
payable.

Those in the industry remain optimistic that the market will
continue to improve as property prices adjust accordingly.

Originally Published by Spring 2023 issue of Fine &
Country Magazine

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