Aberdeen house prices rise again as economy improves

New figures confirm the continued bounce back in the property market in the north-east after being badly hit by the recent downturn in the oil and gas industry. 

The price of homes in Aberdeen rose by an average of 6.6% year-on-year in the third quarter of 2021, while Inverurie was ahead 6.1%, Stonehaven 4.7% and Ellon 2.3%. 

John MacRae, chairman of ASPC, said the Q3 figures continue to show “steady improvement” on previous years. 

He added: "I think it is common knowledge that this has been a year when we all hoped for signs of recovery – possibly stability. 

The first half of the year indicated there were signs of steady improvement, both in numbers of sales and in prices." 

There were 1,737 residential transactions in Aberdeen and Aberdeenshire in Q3 - up 0.8% on Q2 and a jump of 39.6% on Q3 of 2020 when the country was badly affected by the Covid-19 pandemic. 

Volume

Nearly 600 detached houses changed hands in the last quarter, up 6.6% on Q2 and ahead 48% year-on-year. 

Mr MacRae also reported that more and more properties were achieving their asking price. 

He went on: "This year's figures are confirmation that our local housing market is recovering. Things are definitely improving for sellers." 

The market report is based on data supplied by ASPC and it was compiled by the Centre for Real Estate Research at the University of Aberdeen Business School. 

National picture

The current health of the property market in the north-east, and also Scotland in general, was highlighted by the latest figures from the Registers of Scotland (RoS) last month. 

The average price of a property in Aberdeen in August was £150,035, ahead 7.5% year-on-year, while in Aberdeenshire the rise was 12.7% to £197,417. 

A typical property in Scotland changed hands for £180,832 in August - a 16.9% jump year-on-year. 

The number of residential sales in Scotland in July 2021 was 10,763 - an increase of 184.1% from June 2020. 

RoS business development director Kenny Crawford said: "Property prices continued their trend upwards in August. The average price of a property in Scotland was £180,832. This is the highest reported for any month since January 2004. 

"Over the year as a whole from July 2020 to the end of June 2021, the number of transactions has picked up following the reductions caused by Covid-19 measures and cumulatively is now 33% higher than the previous year." 

RoS said that, in Scotland, detached properties showed the largest increase in average house price of 21.3% in the year to August to £319,985. 

Price rises were recorded in all 32 local authorities and the biggest was seen in the Scottish Borders - by 29.4% to £194,509. 

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