The north-east housing market is showing signs of a “gradual recovery” as prices rise in 2024.
New figures from Aberdeen Solicitors Property Centre (ASPC) show property prices in the city were up 3.1% in the second quarter of 2024, compared to the first quarter of the year.
The shift in value has seen the average sale of detached homes in Aberdeen rise almost £10,000 in just three months to £325,534.
Looking over a longer period, city prices show smaller increases. The average house price is up 0.1% compared to a year ago and 1.1% since 2019.
Aberdeen market showing “gradual recovery”
ASPC chairman John MacRae said it’s the first time since 2022 prices have shown increases across the three comparisons – quarterly, yearly and over five years.
He said: “At ASPC we are finding levels of activity remaining high.
“This encourages us to think our local market may be starting a gradual recovery towards pre-Covid levels.”
The price of a typical flat in Aberdeen increased from £122,235 to £123,761 between the first and second quarters of 2024. Semi-detached properties in the city also increased from £185,072 to £190,792.
Highest number of properties sold since start of year
A total of 1,383 properties were sold through ASPC between April to June. In terms of transactions, this is up 44.1% compared to Q1.
Mr MacRae said: “We need to be cautious, as the second quarter of the year is, normally, the most active.
“External factors, however, may be more helpful than they have been for some time – particularly as there is a new government and there may be a feeling of renewed optimism that things will change for the better.
“Other factors include inflation seeming to be easing down, the (distant) prospect of interest rates moving downward, and a general feeling of optimism.”
How did surrounding areas perform?
- Inverurie saw the average price of a detached home increase from £314,994 to £322,178 and semi-detached properties rose from £176,764 to £184,287. Flats increased from £127,427 to £131,814
- Prices in Stonehaven have also improved, with the average detached property increasing from £319,063 to £330,931 while semi-detached properties rose from £179,061 to £183,178 and flats increased from £129,152 to £129,388.
- Figures in Ellon show the detached market increasing from £261,607 to £274,215 semi-detached rose from £159,103 to £163,229 and flats from £101,483 to £103,152.
- Properties classed as countryside also showed increase. The average price for flats went from £112,898 to £115,064, semi-detached homes £180,872 to £186,793 and detached houses £341,214 to £356,901.
Mr MacRae added: “I would like to see the second half of the year echo the first.
“While not expecting activity to match the level of the second quarter, we will have further proof of a market in recovery if the second half is correspondingly encouraging.”