Aberdeen house prices drop 4.7% in last five years
House prices in Aberdeen dropped by 4.7% in the last five years according to a new report by ASPC.
Figures from the Aberdeen Solicitors’ Property Centre (ASPC) report – produced with Aberdeen University Business School’s Centre for Real Estate Research – indicate a five-year contraction in Granite City house prices of -4.7%, while the price of homes in Inverurie and Stonehaven fell by 4.4% and 4.1%, respectively.
The city has also experienced a dramatic drop in property sales during the coronavirus lockdown period, with sales 64% lower than the same period last year.
Flat deals were the worst affected, with a decline of 69% year-on-year, while semi-detached houses saw a drop of 61% during the same period. Detached sales declined by 63%.
The coronavirus lockdown also resulted in a 57% fall in the number of properties coming on to the market in the second quarter oof this year when contrasted with earlier in the year.
John MacRae, chairman of the board of directors of ASPC, said: “We knew that the government strategy of lockdown was going to have severe effects for nearly all areas of business; the latest report shows just how dramatic that has been. Compared to the same period in 2019, sales fell by 64 per cent. Given the severity of the lockdown provisions this should not be regarded as unexpected. Flats were most affected with a drop in volume of 69% year on year.
“Semi detached houses saw a drop of 61% year on year. Detached houses saw a drop of 63% year on year. Unsurprisingly, this was matched, during the second quarter, with an even more severe drop in properties coming to market. In the early part of lockdown, new insertions on ASPC dropped almost to zero. Since then, however, things progressed and since the easing of lockdown, insertions have risen, quickly, to near normal levels. This activity appears to be matched by sales, although we have to bear in mind that sales were already at lower levels before lockdown.”
He added: “One interesting factor is that sales that are taking place are taking place, generally, at a price level slightly below asking price. This may be a good time to buy.
“The inferences to be drawn, if any, from the second quarter are subject to great caution. The low activity, resulting in reduced numbers of transactions, means it would be unwise to reach any fixed view of the current market. The welcome return to more “normal” activity, shown in the last four weeks, needs to continue for the remainder of the year, before we can say we seem to be over the worst.”