The property market in Jersey.

[boatyboy]

Interesting that this information is released four weeks after the largest political election Jersey has known. Would you have voted the same way had you known that Jersey is doing great ( according to Treasury Minister Ozouf ), but the value of your home is sliding ?

Parts of the article.

CTV.

Property prices nosedive

Amongst the total of one bedroom flats sold in the last quarter, two fifths of the properties went for less than £160,000, largely due to large scale developments like Castle Quay.

This drop is driven by a saturated market. With so many properties available it is a buyer's market - with the potential for negotiating a lower price

http://www.channelonline.tv/channelonline_jerseynews/DisplayArticle.asp?ID=497048

BB

[ryanmorrison]

Doesn't this depend on what side of the housing market you are sitting on? Couldn't this be seen as a good thing for first time buyers or people looking to move up the housing market?

[boatyboy]

Fair comment Ryan and most of the European countries and the Uk are insolvent which will impact on Jersey.

It is also reasonable to say that the Jersey population of older voters are fairly conservative steady as you go types.

This underlines the point I was trying to make, for the first time certainly since I can remember property values have gone down regardless of all the spin. How do the voters feel now with the safe pairs of hands of established politicians with indicators published after the election.

The article mentions qtrs but these never saw the light of day before the election. Keep the bad news secret, until some of the under performers have been re-elected.

BB

   

[Fritz]

I thought the idea of ,"Inviting", Dandara to build in Jersey was to do exactly what it has achieved in bringing down the price of housing.
I dont see anything wrong with it. Folk should look on buying a house as buying a home. Not a way of making a quick buck.
I couldn,t care less what my house is worth from one year to the next. The value of my home doesn,t change.

[man in the street]

 anyone who was under the impression that homes would remain  a cash cow , without looking around at the rest of the world , and swallowed  the "its all rosey in the garden" outlook, the pidgeons  will come home to roost , here's the joke fritz i may move into  my paid for home and  have very little or no work. as  you say, a home is a place of shelter from the world ,  to be cosy in and have freinds  and family visit  and laugh( which is priceless).
 jersey is good at ridding  out storms , but then comes "the perfect storm" i hope it blows its self out soon.
 imo,  the key factor to taking out a mortgage , if i was to, is total work related income for the life of the  debt and beyond  and  confidence  in what is happening around me .
 i do not  like to see the amount of unemployment , ive never seen it so bad in jersey ,  only looks to be going  upwards.
 pure greed will damage all.

[shortport]

house prices won't be rising until earnings start to rise,and that's not going to happen anytime soon.The price of housing has raced ahead at a far faster rate than wages,now they will have to wait till salaries catch up,and thats not going to be for a long time.Its funny how many people seem to think that Jersey is immune to any kind of recession or property crash.Many of Jerseys most serious problems have been swept under the carpet for so many years and at the moment they all seem to be coming home to roost at once.I predict next year to be far worse than this one.

[Calimachon]

We are probably going to see the same kind of problem that happened after the second world war.  Things got very stagnant then, unless you owned a farm on the plains at Grouville and grew tomatoes, when you could earn enough money to keep all your family in clover for generations to come.

Batten down the hatches, get the supplies in whilst they are cheap and ride that big storm that 'man in the street's says may be coming.  As he says Jersey is good at riding out the storms.

Historically a Conservatives government have been pretty nice to the Channel Islands.  We must have done something rather nasty to them to have turned on us like they have.

Cali

[Lokel_Yokel]

The easy "fix" to keep up house prices is to fiddle with the Housing Quallies (Over 55's can buy if they are also full tax payers?) - or drop them altogether.

I don't say it is a good thing - but current method clearly never worked (apart from as a Ponzi scheme) £400k plus for a decent semi? Is that 6 or 8 times average earnings?......good luck with getting a mortgage for that sort of multiple!

[boatyboy]

There is indeed a problem that is affecting the price of property.

In the last two years property prices have nosedived. Buyers that placed a deposit for a new build apartment off plan with developers like Dandara some time back, are  asked for the final payment, then have return to the bank, whom may well refuse the amount asked for the property based on a weakening market, and in todays market an unrealistic asking price compared to when the build started.  As the article says above by the CTV article the prices are coming down.

Good bye qualies, let everyone in that can afford to purchase a property.

Lets look after vested interest, little moving, no money going around, means no money for stamp duty, lawyers, developers, estate agents.

Welcome to overcrowded and sold out Jersey, full of  new residents that can take advantage of zero inheritance tax and no capital gains tax and keep the price of property high. More flats please Minister for Planning.

BB

[shortport]

Well put Boatyboy
The states have no intention of controlling immigration as long as it keeps houses overpriced.Trouble is it doesn't seem to be working as houses aren't selling.
Another reason for not tackling immigration is our 0/10 tax policy.
Because businesses do not pay tax, the tax burden has been put on the employee with ITIS.
Which do you think the states would prefer. 30,000 people working and 500 unemployed or 60,000 working and 2000 unemployed.This arrangement also suits buy to let landlords very well.
And all the while 11k's pay next to nothing,and don't even get me started on £44,000 ceiling on social security contrbutions.
So to hell with the infrastucture and quality of life as long as the rich gets richer.What a sad little island we've become.