Scottish house sales top £5bn in Q3 as Aberdeen makes tentative recovery

Robert Fraser

House sales in Scotland topped £5 billion during the third quarter, with the average home in both Edinburgh and East Renfrewshire now costing more than quarter of a million pounds.

For the second consecutive quarter, East Renfrewshire recorded the highest average price in Scotland, with the average sale reaching £261,512 during Q3, up 5.9 per cent on the same time last year.

The Glasgow suburb is just ahead of Edinburgh, which saw average prices rise 6.6 per cent year-on-year to £257,220. Perth and Kinross has enjoyed its second consecutive quarter of considerable growth. It has followed its near 10 per cent price increase in Q2 with another 6.1 per cent rise this quarter. The back-to-back increases put the average home in the region at £203,398 – overtaking Aberdeen.

Property prices in Aberdeen meanwhile have risen for the first time in more than two years, according to new research.

Aberdein Considine’s Property Monitor reveals the average price of a home in the city rose marginally to £200,832 during the third quarter of the year. The 0.1 per cent increase is significant as it is the first year-on-year rise recorded since early 2015 – when tens of thousands of jobs were starting to be cut from the region’s lifeblood oil and gas industry.

The research – carried out in conjunction with Aberdeen and Grampian Chamber of Commerce – also reveals the second consecutive increase in sales in neighbouring Aberdeenshire, where transactions have jumped 2.1 per cent and 5.7 per cent during the second and third quarters of 2017.

Robert Fraser, a senior property partner at Aberdein Considine and 35-year industry veteran, said the local homes market appears to be showing ‘slight signs’ of improvement. “I think we are seeing the first tangible signs of the north-east market bottoming out and tentative signs of a recovery,” he said.

“However, these figures need to be taken in context, as the comparative figures they are against are some of the lowest we’ve seen in recent years.

“More favourable oil prices have resulted in some good recent activity with an increase in the number of properties over £500,000 being sold compared with the last few years.

“If the oil price can be sustained, I would expect this to be reflected in a stronger market next year with particular activity in spring - although I expect that the recovery will be gradual rather than sudden.”

Mr Fraser added: “The property market in Scotland as a whole is enjoying a spell of growth not seen since the halcyon days prior to the financial crash of 2007/08.

“More than 28,000 homes changed hands during the third quarter of the year, up nearly four per cent on the same period last year and almost 2,000 more than Q2. “