Edinburgh property market continues to buck the UK trend - ESPC
The average selling price of properties in Edinburgh increased by 9.5 per cent in the last three months of 2017, when compared with the same period last year, according to the latest house price report from local estate agents ESPC.
Across east central Scotland the average selling price increased by 7.3 per cent year-on-year to £234,757 between October and December 2017, bucking the overall UK trend of decreasing property prices, as has been reported by various commentators.
This increase in selling prices could be attributed to a 2.5 per cent decrease in the number of homes sold over the last three months, and a 3.1% decrease in the number of homes being marketed for sale.
With a shortage of properties available, particularly in desirable hot-spots, multiple buyers are in competition with one another, thus driving up the prices. This is similarly reflected in the fact that 89 per cent of properties in east central Scotland are now marketed as ‘offers over’, the highest percentage we have seen in a number of years, and those properties are achieving on average 9.3 per cent over the asking price, up from 7.1 per cent last year.
Some of the most desirable areas and types of property in Edinburgh that have shown the large increases over the last year include two bedroom flats in Morningside and Merchiston, up 17.3 per cent year-on-year, and two bedroom flats in Trinity, up 25.6 per cent year-on-year.
While the time to sell is currently down to 18 days in Edinburgh, the types of property selling the quickest, at 14 days, are one bedroom flats in Gorgie and Dalry, and two bedroom flats in Portobello and Joppa.
ESPC’s business analyst, Maria Botha-Lopez said: “Throughout 2017 we have seen faster selling times, an increase in the percentage of properties being marketed as ‘offers over’ and an increase in average selling prices, particularly for two bedroom flats in the most desirable areas of Edinburgh. This is indicative of the trend we have seen for some time, of a shortage of properties and increased demand, which drive up the average selling prices.
“While Edinburgh city centre flats are proving popular, three bedroom houses in popular family areas like Blackhall, Silverknowes and Balerno and Currie have stabilised over the last three months, with slight decreases compared with the sharp increases in selling price earlier in the year. Similarly, properties in Dunfermline have decreased by 1.7% over the last three months, and with an average selling price of £160,022, they are significantly more affordable than properties in Edinburgh or East Lothian.”