Over the course of the year 2015 Grossmann & Berger noted price rises of up to 6% for residential properties of all types and in all locations on the Island of Sylt. “Our forecast for 2016 is that prices will increase by an average of 4%. And for some types of property in Kampen, Keitum, Archsum and Munkmarsch we are expecting to see prices rise by between 5 and 6%”, says Lars Seidel
, managing director, residential properties, of Grossmann & Berger, commenting the publication of the Sylt Market Survey 2015/2016. “This market survey is the first to give owners some idea of what they could expect to obtain under the given circumstances if they sell apartments, semi-detached or detached houses on the Island of Sylt. Another new feature of our survey is that in order to make comparisons easier we now provide square-metre prices for standard properties, instead of stating a range of purchase prices.”Imbalance between supply and demand
In 2016 the market for residential properties on the Island of Sylt will continue to be dominated by the imbalance between supply and demand. Above all, the few new buildings available cannot satisfy demand. “New buildings only come onto the market when older houses are pulled down on Sylt. Nowhere else in Germany is the situation as extreme as it is here,” says Andreas Gnielka,
head of the residential properties division at Grossmann & Berger. Hardly any projects involve the building of new apartments for private ownership, and most of the few are in Westerland. Usually buyers are found very quickly. New-build houses in preferred locations, erected on the site of an old house that has been demolished, are rare and, as a rule, change hands very soon after completion. The supply of existing real estate is, however, relatively large, especially if the property is a semi-detached house or dwelling with outdated fittings. “Buyers looking for apartments on Sylt concentrate on properties selling for between €300,000 and €500,000 and the buyers of detached or semi-detached houses are interested in properties costing between €1m and €2m”, reports Torsten Paulsen
, sales manager in the Kampen shop of Grossmann & Berger. Most buyers prefer locations close to the beach in Westerland, the western part of Wenningstedt and practically all areas close to the Wadden Sea. “A contemporary, high-quality fit-out is becoming increasingly important in making a sale, as most new owners wish to let their property to holiday-makers, at least for part of the year. The standards guests expect to find in their holiday accommodation have risen quite considerably in recent years.”Kampen remains a property hot spot
Kampen is still the town with the highest square-metre prices on the Island. It is the only place on Sylt where five-figure prices are paid per square-metre for apartments, semis (duplex houses) and detached houses. A standard apartment* will currently sell for €13,500/m² of living space, a standard semi-detached house** for €26,400/m² and a standard detached house*** for €28,500/m².Extreme differences in price
Hörnum, Tinnum and Morsum represent the opposite end of the price scale on Sylt. The most affordable properties are currently in Hörnum, at the south tip of Sylt. Here a standard apartment* will currently sell for €4,500/m² of living space, a standard semi-detached house** for €5,100/m² and a standard detached house*** for €5,750/m². “Residential properties in Hörnum are also popular and sell quickly. Evidence of this is seen in the fact that prices have risen here too, and we expect to see them rise further. Many actors on the market had, however, anticipated considerably stronger growth,” Paulsen
remarks.Low propensity to sell
When residential property is sold on Sylt, it is usually because the owner has died, or feels too old to remain in the building, or the property requires expensive repair work. “Another reason is people cashing in their profits, especially since political circles have been talking about taxing the capital gains from selling property. Overall, the propensity to sell property on Sylt is very low, so prices will continue to rise. But that is not going to stop buyers paying collector's prices for really exclusive real estate on Sylt,” thinks Paulsen.
* Standard apartment: 3 rooms, around 80 m² living space, 1st floor, good building fabric and fit-out
** Standard semi-detached house: at least 150 m² living and usable space, at least 500 m² of land, good building fabric and fit-out
** Standard detached house: at least 220 m² living and usable space, at least 1,000 m² of land, good building fabric and fit-out
Permission is given to reprint the attached photos (source: Grossmann & Berger).
You may find the detailed market survey on our website