25 Jul 2016

Oil crisis continues to impact north-east property market

Oil crisis continues to impact north-east property market

New figures from the ASPC show that property prices in Aberdeen and Aberdeenshire have fallen by more than 7%.

New figures from the ASPC show that property prices in Aberdeen and Aberdeenshire have fallen by more than 7% due to the impact the oil and gas crisis has had on the local economy.

The group's quarterly market report - published in conjunction with Aberdeen University - shows that the average price of a home in Aberdeen and Aberdeenshire fell 2.4% between the first quarter of the year and the second.

When measured against 2015, average prices are down by 7.3%.

In terms of sales, the ASPC said 1,269 properties were sold during the quarter - down 32% year on year.

However, the figures also show an increase in the number of flats and semi-detached homes being sold.

'Performing well under pressure'

Despite the difficulties, the ASPC said that it believes the market is performing reasonably well given the current pressures.

ASPC Chairman John MacRae said: "The second quarter figures indicate the continuing effect the oil industry downturn is having on our local housing market.

"It is easy in times like this to fall into the trap of thinking that matters are more serious than they are but despite the downturn in the market, the local market is, in fact, continuing to perform reasonably well under pressure.

"A few figures may help. Sales volume across the 3 main types of property increased in the second quarter – flats by 2.5%, semi-detached houses by 21% and detached houses by 14.5%."

Good news for buyers

While the drop in prices and sales makes the market more challenging for sellers - it's a different story for those looking to buy property in the area.

Bob Fraser, Senior Property Partner at Aberdein Considine, believes the current market offers "fantastic" opportunities for buyers.

"Clearly, the market in the north-east is tougher than it has been at any point in the past decade," he said.

"However, the region has benefited from a property price boom over that period at a time when the rest of Scotland was suffering from the recession. 

“It’s now a buyer’s market in Aberdeen and Aberdeenshire – offering opportunities to first-time buyers and those looking to move up the property ladder.

"I would urge them to take advantage of it, because over the past decade we have seen how hard it can be for young people to enter the property market.

Scotland's property experts

If you are looking to buy, sell or lease property, Aberdein Considine can offer you the support of some of the most experienced property professionals in the country.

We are also an independent broker of buy-to-let mortgages and can offer home loans without any hidden fees.

If you would like to speak to a member of our team, call 0333 0066 333 or click here

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