In the time between January and March, the prime property market in Edinburgh has experienced an increase of 3.3%, which pushes the annual increase to 7.7%, according to up to date analysis.
Knight Frank, the real estate firm that released the report, stated that the increase in activity in and around the city, especially in the better areas with higher priced properties, is responsible for the increase in prices. Since the index began around 10 years ago, this is the quickest rate of growth.
When we dig a little deeper, it is easy to see why there was such an increase, in the 1 million sector of Edinburgh, there was an increase in sales during 2017 of 65% compared to the year before and of the £1 million and more sales throughout Scotland, Edinburgh represented 65% if the total.
Supply is remaining fairly tight with around 40% less high ticket price properties over £500,000 are put on the market. This number is in comparison with 2016 during the same period and this could effect the level of transactions during this year (2018).
There was also an increase in the amount of transactions taking place throughout 2017. As reported by the Registers of Scotland, the increase in transactions grew by as much as 25 during last year. Although, there was also increases in the higher price brackets during the year 2017. There was an increase on the year on year property sale increase of sales between £500,000 and £1 million and also sales over the the £1 million mark.
It follows a period, as reported by Oliver Knight, of more low key activity within the prime property market following the establishment of Land and Building Transaction of 2015.
He stated that although activity concentrated around the more centralised areas during 2017, it began to move into the suburbs, especially the south and west of Edinburgh. This was driver by the need for larger family homes in areas like Morningside and Murrayfield.
He also said that the fact data retrieved by Knight Frank cover the first months of 2018 shows that the same driving momentum has followed on to this year too. There is still strong demand and current times for selling averages at an average of as little as seven weeks, regardless of price bands, in comparison to 2017’s over eight weeks selling times.
Looking into the future, although there are positive feelings about Edinburgh’s property market at the moment, as there is a considerable shortage in new homes being developed and entering the market it could effect the number of transactions for 2018.
Listings data analysis has already shown that there has been 40% less properties for sale at £500,000 and more in 2018 in comparison to the same period of last year.
Edinburgh’s property market has risen to amount to 65% of the property market with homes set at £1 million and over, which is a marked increased from last year’s 55%.
The activity was focused predominately within central locations in the city such as EH3 which took up about ¼ of all sales, closely followed by EH10 and EH4.
