10:45 AM, 2nd March 2023, About 2 years ago
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Scotland’s average house price is flattening – but some property types have not yet peaked, one firm of lettings and estate agents says.
DJ Alexander says that Land Registry data for last year show that while average house prices began to flatline at the end of 2022, there are geographic areas and property types which are still showing substantial price increases.
The firm says that Edinburgh, Glasgow and Dundee all had average price increases of 5.9%, 5.3% and 4.1% respectively.
However, prices in Aberdeen fell by 2.7%.
David Alexander, the chief executive officer of DJ Alexander, said: “These figures show that while the overall picture is of a housing sector where prices are flattening and will probably fall in most areas, for some parts of the market this is still something of a boom time.
“The fact that detached homes – which make up the most expensive part of the market – are continuing to rise to record breaking levels is extraordinary but perhaps not surprising since the purchasers of these properties will probably be less impacted by short term economic issues.
“They may also be in areas where the local economy remains lively and therefore employment rates are high, incomes are stable, and the market remains optimistic.”
He added: “Given that other recent research revealed that over the last year Scotland had recorded the most million pound plus sales ever highlights just how buoyant this part of the market remains.
“It should also be noted that properties at these values often attract buyers from Scotland, the rest of the UK, and internationally so there is a much greater pool of purchasers available for these homes.”
The data shows that the worst performing property type is flats which were, on average, 0.7% lower across Scotland at the end of 2022 compared to the beginning of the year.
However, in Edinburgh, Glasgow and Dundee, the average flat prices are still higher than a year ago at 3.6%, 3.4%, and 1.3% respectively with Aberdeen falling 5.6%.
The average price of a detached home in Edinburgh reached its highest level of £781,059 in December, which was an 11.5% increase over the year.
Glasgow’s detached homes reached their highest ever level of £485,452 at the end of 2022 which was an 11.7% increase in the 12-month period.
Mr Alexander says: “What does this tell us? That any downturn and subsequent recovery in the housing market is determined by many unique factors which will impact the strength and ability of each area and each micro market to recover.
“Clearly demand for detached homes rose enormously during lockdown and has persisted beyond the pandemic.
“Equally the popularity of Scotland’s two largest cities, and also increasingly Dundee, is so great that property remains in demand resulting in higher prices across property types despite the external financial factors impacting on the wider market as a whole.”
