Bermuda’s house sales market has recorded its first increase in sales for six years, a top Island real estate agent said yesterday.

Rego Sotheby’s chief Buddy Rego said the struggling sector had been boosted by an easing off of restrictions on property purchases by Permanent Resident Certificate (PRC) holders.

But the market still only rose by one percent last year — although Mr Rego said any increase was welcome against a backdrop of 30 percent year over year declines since 2008.

He added: “Last year’s dollar value of property transactions increased one percent over 2012 from approximately $193 million to $195 million.

And Mr Rego said: “The dollar volume and percentage increase will certainly rise as more records are received by the Registrar’s Office.”

He added that around $2 million in extra sales had been recorded due to PRC holders in the house and condominium markets.

He said: “Further signs of recovery include the four percent rise of stand-alone residential home prices sold during 2013.

“Even more promising is the improved average price of condominiums and undeveloped land sold which increased by almost 15 percent during 2013.

“In contrast, the median price of condominiums above $32,000 in annual rental value (ARV) increased by only two percent yet those below $32,400 increased by 13 percent.”

Mr Rego was speaking as he unveiled the firm’s round-up of last year. — which showed some light at the end of the tunnel for property sales.

But Mr Rego added: “Tempering the enthusiasm is the disappointing sales volume trend of condominiums overall. Those with an ARV below $32,400 experienced a decline of almost 70 percent.

“Those with an ARV of above $32,400 fell by ten percent. This illustrates the lack of resiliency by the entry-level property buyer.”

But Mr Rego said that sales of houses with an ARV below $177,000 — where the average sale price rose to more than #1.2 million in 2013 — had increased by more than 12 percent.

He added: “The median price in this sector increased ten percent to $1.02 million, up from $927,000 in 2012.”

But he said the sales of luxury homes “was not so encouraging.”

The top end of the market, those with an ARV of at least $177,000 or more in 2013, saw a decrease from seven to five property sales compared to 2012, with four of the sales last year being to non-Bermudians.

Mr Rego added: “Likewise, the number of luxury condominiums sold fell from 52 in 2012 to 32 in 2013. While the majority of those condominiums continue to be purchased by Bermudians, the number of non-Bermudian purchasers increased from four in 2012 to six in 2013.”

And Mr Rego said he hoped that the reduction in licence fees for non-Bermudian home buyers would bear fruit in the coming year and return the market to an average level of ten luxury property sales a year.

Mr Rego added that signs of change tended to show first in the rental market.

He said: “A positive sign was the unusually low number of high-end executive rental homes available for rent.

“Our residential rental professionals observed fewer vacancies during 2013 compared to 2012, particularly for luxury rentals of $8000 a month and up.”

Mr Rego added that the domestic rental market appeared to be stabilising, with listed apartments hitting an average of $1600 a month for a one-bedroom property, $2500 a month for a two bedroom home and $4000 a month for three bedroom apartment.

And he said the condo market saw an average of $4000 a month for two bedrooms and $6500 a month for three bedrooms.

Mr Rego added: “Rental properties receiving the highest volume of interest are located in the central parishes of Devonshire, Pembroke and Paget with a minimum of two bedrooms and two bathrooms and rents ranging from $3000 to $6000 a month.

Mr Rego added that Bermuda’s tourism product has also shown improvement, with his firm involved in the brokerage and sale of the former Sonesta Beach Hotel site and the Coral Beach and Horizons property.

And he said that interest in the Pink Beach Club and Newstead/Belmont Hills resort showed that “growth may be cautiously observed.”

In the commercial sector, the firm’s Penny MacIntyre said that landlords had “inked single-digit rental rates” to stem the costs of carrying vacant properties, with tenants agreeing to pay for renovations, service charges, insurance taxes and repair and maintenance.

But she said a “ripple effect” caused by the new Waterloo House and renovations, including a new marina, at the Hamilton Princess, had given a boost to the western edge of Hamilton along the Pitts Bay Rd corridor. Ms MacIntyre added that office and domestic rentals in the surrounding area ranged from $40 per square foot to $90 per square foot.

The average commercial sale across the island increased by 26 percent — hitting $2.2 million for the eight properties handled by the firm last year.

That compared to an average price of $1.7 million for the nine properties sold the previous year.

The two biggest sales of the year were the former White’s supermarket in Warwick, which went under the hammer at $5.6 million and the Sherwood building on Pitts Bay Rd at $4.5 million.