The number of property sales registered with Government has dropped by more than 75 percent over the past two years, while the volume of sales so far in 2010 was only 26 percent of 2008 levels.

That is according to Rego Sotheby's July 2010 Newsletter, which revealed that 66 transactions were registered this year to date compared to 182 during the same period in 2009 and 305 units in 2008, reflecting 2010 registered closings to date at only 22 percent of the registered closings just two years prior.

Island-wide dollar volume for overall registered real estate transactions in 2008 was $355 million, while 2009 had $207 million and so far this year indicates approximately $91 million.

The newsletter said that the the June 30, 2010 numbers for the overall real estate market indicated the same slow pace shown in the two previous quarters through a soft market, lots of inventory and cautious buyers taking their time to make decisions, but a steady market for buying and selling. The report said that acknowledging the natural lag time in closing registration time (law firms have one year to report closings to Government in Bermuda), it was understood these numbers would be on the rise heading into 2011.

Meanwhile in the residential sector, average sale prices have increased from $1.5 million in 2008 to $1.7 million due to some higher end closings, while 2009 had an average sale price of $1.4 million.

Of those properties with an annual rental value (ARV) of more than $153,000 available to non-Bermudians, there have been three closings registered in the first half of 2010, one to a Bermudian, one to an American and one to a UK citizen. Over the same period in 2009, there were eight closings with 50 percent to Bermudians, 25 percent to UK Citizens, 12.5 percent to Canadians and 12.5 percent to Americans.

The condo sector also experienced an rise in average sale price in the first half of 2010, from $895,000 in 2008 to $849,000 in 2009 to $918,000 over the same time frame in 2010. Of the condos with an ARV of more than $32,400 and also available to non-Bermudians, there were 15 registered by Government in the first half of 2010, with 74 percent being bought by Bermudians, 13 percent purchased by Americans and 13 percent by UK Citizens.

The residential rental sector has been unpredictable over the past two years, with a downward trend in rents after September 2008 followed by a stablisation in high end and executive rents ($15,000 per month and over) during the past six months, with properties maintaining the rental income they enjoyed prior to September 2008.

For all other rental levels supply has definitely exceeded demand and as a result many properties have remained unrented for a much greater length of time than before and rents have decreased on average between 10 percent and 30 percent across the board.

Traditionally the rental market has tended to slow down entering the summer months, but the newsletter said that this quarter was proving to be equally as busy as the first quarter, with much of the business being generated by newcomers to the Island.

In the commercial sector, the year started out with the same lacklustre pace seen through the year-ending 2009. Commercial sales activity remained quiet with a single property sale recorded to date in 2010 stemming from the 2009 Trinity Hall transaction finally closing for $3.1 million.

While buyers continued to be cautious, the report said that the rental malaise did not last long as the market followed the spring season with long-awaited leasing transactions finalising and the onset of tenant demand for office space.