Hopes are high that the Aberdeen housing market is on the up after a year of solid price and demand growth according to north-east property experts.
Figures released by the Aberdeen Solicitors Property Centre (ASPC) showed property prices in Aberdeen city have risen by 1.4% the past year in a sign the market is “gathering momentum”.
However, the recovery is still in its early stages.
In the first three months of the year, residential property sales in Aberdeen edged down 0.7% on the prior quarter and in Stonehaven prices dipped by 3.3% in the same period.
There was more encouraging news for Ellon which saw an increase of 2.8% and Inverurie 0.1 per cent respectively.
The report, compiled by the Centre for Real Estate Research (CRER) at the University of Aberdeen Business School, also showed the house price change over five years in Aberdeen has been -1.2 per cent.
The average price of a flat in Aberdeen fell from £127,889 to £126,576 and semi-detached properties decreased from £189,253 to £187,863.
However, the detached homes market in the city, saw a price increase from £317,653 to £320,026.
Mixed figures across surrounding towns
Stonehaven has seen house prices fall across all types of dwellings.
The average flat price dropped from £136,485 to £133,564, semi-detached £186,911 to £180,771 while the largest fall was in the detached homes market, down from £308,763 to £302,066.
Inverurie figures showed the average flat price dipped from £127,888 to £123,591, semi-detached properties £182,722 to £182,914 and detached properties decreased from £299,404 to £298,115.
Prices in Ellon are more encouraging with growth across all house types.
The largest increase was semi-detached properties with figures reaching £158,492 from £154,132.
Flat prices rose to £114,859 compared to £113,853 while semi-detached homes increased to £158,492 from £154,132.
Properties in the countryside have also risen with an average flat price from £116,754 to £117,815, semi-detached properties £176,586 to £178,013 and detached homes £318,031 to £319,877.
Positive signs
Joni Esson, managing director of legal, property and financial services firm, Esson & Aberdein, is confident that the findings demonstrate the city’s housing market returning to a former position of strength.
She said: “This report represents real positivity for Aberdeen’s housing market.
“The past 12 months have been steady but as we entered spring, there was most definitely an upturn in positive interest across Aberdeen’s property.
“As we start to return to post-pandemic normality, relocation is becoming the norm again as the world opens up. In turn, more properties in the area are becoming readily available.
“As a result, the supply of good quality family homes is continuing, resulting in more people moving to, or relocating within, Aberdeen and its suburbs.
“For example, we at Esson & Aberdein are noticing a real interest in three-bedroom family homes across established neighbourhoods.”
A total of 1,212 residential dwellings were sold in quarter one of this year, a change of -18.3% compared to the fourth quarter 2021. This saw a change of -5.5% compared to the same quarter a year ago.
Prices are recovering
ASPC chairman John MacRae said the data “backs up anecdotal evidence that the market in our area is gathering momentum”.
He added: “The main point of the report – the house price index – shows a small decrease, quarter to quarter, a modest increase annually, and a diminishing level of decrease over five years.
“This last index is interesting, because it has been a negative figure for some years but in recent years has been diminishing – indicating that prices are slowly heading back to where they once were.
“In effect, losses are slowly being recovered.
“In our area, properties are, on average, selling for the asking price.
“In some areas we are beginning to see demand greater than supply.
“We are seeing growing numbers of closing dates and more properties are selling in a competitive environment.
“Flats are still a more problematical situation.
“We are seeing an increase in the number of flats selling, but the number of flats in stock does mean it will take time for the increase in activity to become apparent.”
Market recovery growing
Ms Esson added: “The report gives us an insight into the long term picture.
“The house price change over five years in Aberdeen is -1.2%. This figure is slowly decreasing showing the market’s recovery is going the right way, slowly but surely.
“It’s great to see an increase in such important figures that clearly demonstrate a positive shift in the housing market.
“The report in general has reaffirmed that the market is most definitely on the up once again.”
Conversation