Newbuild and detached homes boost Scottish property market

Newbuild and detached homes boost Scottish property market

0:05 AM, 1st September 2023, About A year ago

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The Scottish property market has seen a slight dip in average house prices over the last year, but newbuild and detached homes have bucked the trend and recorded positive growth, data reveals.

The findings from lettings and estate agents DJ Alexander show that from July 2022 to June 2023, the average house price in Scotland fell by 1.19%.

However, detached homes increased by 0.42% and newbuild home prices soared by 14.99%.

Detached homes continue to increase in price

The firm’s chief executive, David Alexander, said: “Detached homes continue to increase in average price despite enormous gains over the last three years.

“Newbuilds are attracting ever higher prices at a time when the wider market is slowing or even experiencing price falls.

“This could be due to a number of factors but the advantage of newbuilds is that the price is fixed, and you aren’t in a bidding war for a property which can make them more attractive to buyers who know exactly how much they have to pay, and buyers don’t have to do any work on their new home.”

‘One part of the country is becoming unaffordable’

He added: “The continued growth in Edinburgh and the surrounding areas is positive but there may be a danger that one part of the country is becoming unaffordable to those outwith those areas.

“While all property booms must eventually come to an end there is little sign that the market in Edinburgh is cooling in the same way as other parts of Scotland and the rest of the UK.

“The recent interest rate rises seem to be having little impact on buyers in the capital and it remains to be seen where the market goes in the coming months but at the moment it remains extremely vibrant and dynamic.”

Areas leading the market with rising prices

The research also shows a regional variation, with Edinburgh and its surrounding areas leading the market with rising prices, while Aberdeen lagged behind with falling prices.

Edinburgh was the only Scottish city where average house prices rose, by 2.72%, while Aberdeen saw a drop of 3.04%. Glasgow had a modest increase of 1.33%.

Newbuild homes performed well across all major cities, with Edinburgh topping the list with a 16.74% increase, followed by Glasgow (12.64%), Dundee (9.75%) and Aberdeen (4.66%).

The report attributed the strong performance of newbuild and detached homes to factors such as high demand, low supply, quality, energy efficiency and government incentives.


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