There is more supply than demand in the Bermuda's residential property market, in both the sales and rental sectors.

That is according to Buddy Rego, president of Rego Sotheby's International Realty and chairman of the Real Estate Chamber of Commerce, who said that he expects the results at the end of September and October will reveal a truer extent of the impact the global economy has had on the real estate market.

However, the top end of the business has proved to be buoyant, despite the tough conditions facing the economy, with investors looking to get a good return from a traditionally affluent property market, said Mr. Rego.

Meanwhile Coldwell Banker Bermuda Realty president Brian Madeiros said the Island's residential market had not been affected by the USand UK sub-prime crisis, while demand for properties priced between $800,000 and $1 million remained healthy.

"While generally we are experiencing more residential sales and rental supply than demand in the middle and starter tiers of the market right now, and acknowledging that August is traditionally more quiet time of year anyway for real estate, we anticipate that end of September into October will reveal a truer picture of how the broader economic climate is impacting these two levels," Mr. Rego said. "We are finding the luxury tier to be very active and constant. Our high-end activity here in Bermuda seems to in synch with the findings of the recent Architectural Digest & Sotheby's International Realty Affiliates LLC survey where 85 percent of respondents agreed with the statement, 'I think real estate continues to be one of the better investments a person can make'.

"The study further revealed that nearly two-thirds (63 percent) of respondents reported that current conditions have 'no effect' on their likelihood to sell their primary home and 71 percent agree that 'over time, nothing beats real estate for building one's personal wealth'.

" Mr. Madeiros said there had been an increase in inventory, particularly in the condominium sector, creating some good opportunities for buyers."Although days on the market have increased marginally, if a property is correctly priced, our agents can usually find a buyer for it," he said.

"We are seeing a softening in the high end of the market, but inventory and demand are low.

"The inventory or supply of residential units in the City has also been increasing steadily over the last four years but demand for occupation in this new and emerging sector also continues to be strong for both owner-occupation and for rental purposes.

"Our market research does not indicate landlords dropping their rents and we have seen moderate increases in certain segments of the market."