20 Sep 2013

Scottish Property Market Update

Scottish Property Market Update

Alan Cumming, Asset Manager, provides an update on a more optimistic Scottish property market.

Alan Cumming, Asset Manager, provides an update on a more optimistic Scottish property market.

With the recent press surrounding increased levels of mortgage applications it is no surprise that the number of property sales are soaring.

Registers of Scotland’s latest figures state the volume of sales have increased by 8.1% in quarter two of this year compared to the same period in 2012 and a staggering 37.1% compared to the first quarter of this year. Interestingly average price remains fairly consistent with only a slight increase of 3.3% compared to the first quarter of 2013.

In July the Edinburgh Solicitors Property Centre reported that the number of homes sold was at its highest level for five years. The Glasgow Solicitors Property Centre also reported signs of recovery with time on the Scottish property market falling and sales up by almost a third on the same time last year. Dundee and Angus also note an improving Scottish property market with the number of properties now under offer at the highest level since 2008. At long last the Scottish Borders show strong increases of sales up by nearly 20% and average price up 3.5% on the first quarter of this year.

The Fife market is exceptionally buoyant with 80% of our asset management sales in July achieved through closing dates. It was encouraging to note that in every case the profile of offering parties was an even split of investors and owner occupiers. Closing dates continue to account for approximately 40% of all new sales agreed however the Home Report valuation still remains a ceiling as to what buyers are willing to pay – this perhaps explains why average price has only risen by a conservative 3.3%?

The number of new possessions in remote areas is up and whilst seasonally we are in the best months to market these properties, the number of buyers are still few. Possession numbers have also increased by 15% in the Greater Glasgow area with the majority of properties being flatted dwellings – a sector of the Scottish property market where there is plenty of supply already.

As we approach the end of the summer holidays we remain optimistic about the Scottish property market. Although there are some definite signs of a recovery, we are approaching certain areas of the Country with caution. 2013 is the first year since the recession where the Scottish property market activity is actually reflecting seasonal trends again – long may it continue!

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