Senior Conveyancer Eric Salaun of Voisin reflects on Jersey’s property market during the past year.
2012 has been very similar to 2011 in respect of the amount of property transactions being passed before the Royal Court of Jersey: in 2012 around 990 were passed compared to just under 950 in 2011.
Property prices appear generally to have remained similar to 2011 prices but this is difficult to judge as I do not have information as to the movements on the share transfer market. As we all know a property is only worth what a buyer is prepared to pay for it! If a property is priced correctly it will sell.
You may recall last year that the States of Jersey introduced an incentive to first time buyers to get the property market moving by extending for one year the first time buyer stamp duty bracket from £400,000 to £450,000. This incentive has been extended for a further year. It is encouraging that the States of Jersey are doing their little bit to help first time buyers get on the property ladder, which is most welcome.
It certainly is still a buyer’s market and very good for people looking to invest in property on a buy-to-let basis. The rental market in Jersey is good and purchasers can expect a better return on their investment than keeping their money in the bank earning little interest.
Private lenders have been fairly active over the last year earning in the region of 7% to 8% per annum as a first charge on Jersey Property, which is certainly more than a bank will offer. Already this year we have had a number of requests for private funds, which we have been able to accommodate. If you are looking for private finance and you are able to provide a first charge against Jersey realty please contact me, I may be able to help.
For 2013 I expect a similar amount of properties being passed before the Royal Court as in 2011 and 2012.
For information about any aspect of buying or selling property in Jersey, please contact Eric Salaun (ericsalaun@voisinlaw.com) of Voisin P
