Scottish housing hotspots break £250,000 barrier as Aberdeen makes tentative recovery

Jacqueline Law

Three areas across Scotland also continued to show heavy demand, with Edinburgh, East Renfrewshire and East Dunbartonshire all breaking the £250,000 price mark in the third quarter of the year.

The capital remained the most expensive place in Scotland to buy a home with an average price of £267,035, a rise of 3.8 per cent. East Dunbartonshire rose by 9.7 per cent to hit £251,547 with East Renfrewshire seeing a 1.4 per cent uplift to £265,240.

Research for Aberdein Considine’s Property Monitor has revealed that residential property sales in the Granite City have increased for the first time in nearly two years, with a rise of 7.9 per cent.

In a further boost for the area, the value of property changing hands saw a 7.3 per cent uplift, with total sales of £221,963,819.

Prices in Aberdeen also appear to have stabilised, and whilst there was still a 0.5 per cent year on year fall, the average cost of a home was £199,834.

Whilst any recovery remains in its early stages, the figures also provide some affirmation that recent and future investment projects are already beginning to have a real impact, with buyers and investors returning to the city.

There are also indications that the upturn in the energy sector could be having a knock-on effect on the wider north east region, with property markets in Angus and Dundee also enjoying a resurgence.

Dundee saw a 4.8 per cent uplift in average prices to £144,113 as well as a 12 per cent increase in the value of sales at £103,499,115. Alongside that, Angus experienced a 12.5 per cent increase in the number of homes sold and an 11.2 per cent rise in the value of the homes sold at £97,720,210.

Jacqueline Law, managing partner at Aberdein Considine, welcomed the boost for the north east market and confirmed growth across the Scottish property market.

“The property market across Scotland is in reasonably rude health, and the fact that three areas have all breached the £250,000 price barrier demonstrates that there remains significant pent-up demand.

“The upturn in Aberdeen is great news after a prolonged difficult period, and is hopefully an indicator that we are beginning to see the north east emerge from one of its most testing downturns.

“There’s still a huge amount of work to do to try and get back to where we were but news of the longer term investment plans for the area, and the oil price having hit $80 this year, hopefully provides the necessary level of optimism to help maintain the momentum.

“Critically, the positive effects of a return to sustainable growth in the energy sector should filter through to the rest of the country, providing benefits for businesses across the supply chain.

“However, despite the current feel good factor, we can’t ignore the ongoing turbulence in relation to Brexit, as well as the corresponding uncertainty this is causing to both businesses and homeowners.

“That said, the energy industry is international in nature and the return of a stable and prosperous oil and gas industry should hopefully provide some insulation against the challenges the country might face over the next few months and years.”