Lindsays Residential
Property Market Update
October 2007
The latest ESPC figures indicate that increased interest rates are unlikely to have a significant adverse effect on property prices in east central Scotland.
The average property price in Edinburgh now stands at over £225,000, following an increase of over £27,000 in the last twelve months. Between April and June 2007, properties in the Capital sold for an average of £227,912, an increase of over 13% on the same period in 2006.
The latest rises also marked the fifth consecutive quarter in which annual growth in the City had exceeded 10%, and comes in spite of four interest rate rises during that time.
Some of the most rapid growth was again found to be among smaller one and two bedroom properties, with demand from both first-time buyers and investors pushing prices up. The average price of a one-bedroom flat in Gorgie and Dalry for example now stands at £126,427, following an increase of 21.7%.
There is also evidence that buyers are increasingly willing to be flexible about the areas in which they look to secure a home, with increasing demand rapidly pushing up prices in many of the traditionally more affordable areas of the City. Homes in the Parkhead area sold for an average of over £138,000 after a year-on-year increase of 22%, while in West Pilton a rise of over 31% took the average selling price to £115,275.
The levels of growth we are currently witnessing continue to exceed projections made at the turn of the year. At present, the supply of properties to the market in east central Scotland is simply not sufficient to satisfy demand.
All of the key indicators in the market point towards further growth in the coming months. Properties are selling around 15% quicker than at this time last year, while the average premiums being achieved on properties marketed at “offers over” in Edinburgh have risen to over 28%. In spite of recent rises in interest rates the market should thus remain robust, though the levels of growth may cool toward the end of the year.
The strength of the market in Edinburgh has also had a knock-on effect in surrounding areas. In East Lothian, the average property price broke £200,000 for the first time following an increase of 16.2% on 2006 levels. In West Lothian a rise of over £60,000 in just over two years has taken the average price £188,640.
Growth in the Central region also continued apace, with Falkirk and Stirling recording annual rises of 23.1% and 14.7% respectively. Similarly in Fife, growth in both Dunfermline and Kirkcaldy was found to exceed 12%.
In conclusion, the housing market in east central Scotland remains very strong at present. Until such a time as the supply of properties to the market is able to meet demand, we will continue to see similar rises in the future.
Property price report Second Quarter 2007
| 2007 | 2006 | Year On Year % Change | |
|---|---|---|---|
| City of Edinburgh | |||
| City centre | |||
| › All Properties | £286,733 | £239,340 | 19.8% |
| Suburbs | |||
| › 3 bedroom semi | £250,366 | £219,993 | 13.8% |
| › 4 bedroom detached | £393,761 | £379,958 | 3.6% |
| Marchmont / Bruntsfield | |||
| › 2 bedroom flats | £269,953 | £234,815 | 15.0% |
| Gogie / Dalry | |||
| › 1 bedroom flats | £126,427 | £103,903 | 21.7% |
| Leith Walk / Easter Road | |||
| › 1 bedroom flats | £128,526 | £110,255 | 20.27% |
| Stockbridge / Comely Bank | |||
| › 2 bedroom flats | £259,397 | £232,017 | 14.04% |
| Lothians | |||
| East Lothian | £203,902 | £175,484 | 16.2% |
| Midlothian | £172,448 | £174,290 | -1.1% |
| West Lothian | £188,640 | £158,521 | 19.0% |
| Other areas | |||
| Dunfermline | £151,678 | £134,365 | 12.9% |
| Falkirk | £143,990 | £117,014 | 23.1% |
| Kirkcaldy | £155,013 | £138,091 | 12.3% |
| Stirling | £184,397 | £160,832 | 14.7% |