Edinburgh property continues trend as seller’s market - ESPC

In the past three months, one bedroom properties in the area, one of the most affordable in the city, sold for about the same price as those in Leith, another particularly popular area for first time buyers. The average selling price of a one bedroom flat in Leith Walk, Easter Road, Pilrig and Bonnington is now £144,170, up 12.1 per cent year-on-year. However, this could be a temporary surge in demand and competition among qualified buyers, and average selling prices might return to their six month rolling average of £136,087.

Other areas and property types that have shown large increases in selling prices in this period include two bedroom flats in Trinity, Newhaven and Inverleith, up 22.5 per cent. and three bedroom houses in Liberton and Gilmerton, up 19.7 per cent. For east central Scotland overall, the average selling price is now £232,010, up 7.2 per cent year on year, while in Edinburgh, the average selling price increased by 9.5 per cent to £250,894.

The number of properties sold in east central Scotland over the last three months decreased by 4.2 per cent, however the number of new homes brought to the market increased by 2.1 per cent. This increase in the number of homes for sale could be a positive upturn in the market. However with 90.5 per cent of properties being marketed as ‘offers over’, which is the highest percentage we have seen ever, and with 75.1 per cent of sales achieving or exceeding their home report valuation, the property market in east central Scotland is still firmly in favour of the seller.

ESPC’s business analyst Maria Botha-Lopez said: “If this large increase in average selling prices for Dalry and Gorgie, an area that has been one of the most affordable in the city, continues, it may be worrying for first time buyers. There is a concern that they may be priced out of the market, particularly in high-demand areas in Edinburgh.

“However the increase in the number of new homes being brought to the market is encouraging, as this could mark an upturn in available properties for sales, and take the pressure off the market so that many buyers are not competing for the same properties. More properties on the market could mean that house prices will stabilise, which is positive news for those looking to buy, as is a slower time to sell However this slower time is likely seasonal, relating to the Christmas period, and not necessarily a turn in market trends.”