As we enter the summer months after a period of busy buyer activity, you might be forgiven for wondering what’s next for the property market in Aberdeen and the north-east.
Sales shot up prior to the end of the stamp duty holiday, only to be followed by a natural slowdown as the market reset itself, but it begs the question: will the demand for prime property continue?
The latest survey from Savills property agents shows that buyer and seller commitment to moving over the coming year remains strong. Unsurprisingly, given the new working conditions imposed on many families during lockdown, the “race for space” shows no sign of slowing down – and three key areas are set to benefit from a revived market: city, country and new-builds.
Key demands
In the survey, when asked to rank their top two “must haves” in their new home, more than half (54%) of respondents named extra living space, 40% a larger garden and 33% an extra bedroom in their top two. Many people are prioritising a better work-life balance with 15% of respondents looking for their new home to be located close to a pub or restaurant, compared to just 12% who wish to be close to work.
The country revival puts Aberdeenshire right at the centre of demand, with the sweeping landscape and high quality of living attracting buyers from across the UK – and pragmatic pricing being at the heart of this. Values might remain well below their 2007 peak (21.6%) but rather than depress the market, the lower prices acted as an additional driver, offering better value for money, particularly for those looking for more space.
Rise in city and suburban sales
Of course, there’s more to the north-east than just its countryside, and for some, the urban vibe holds more appeal than open spaces. City, suburban and commuter areas have seen a rise in sales, with many buyers – often those moving back to be near family – choosing to be closer to schools or the workplace. This activity led to a 5.8% rise in transactions over the £400,000 mark in the 12 months ending March 2021.
Although many people have traded up to larger country properties, others sadly missed out on their dream home due to some tough bidding for these top properties. This resulted in more demand for new build homes which come with fixed prices and incentives. Sitting between the city centres and the countryside, these suburban new homes saw a healthy 18% rise in registered transactions in Scotland between October 2020 and March 2021 compared to the same months the previous year.
So what does this all mean for house-hunters? Well, while Savills believes the market will remain strong above £250,000, below that level there’s no doubt that new buyers may still have a few obstacles to overcome before taking the first step on the housing ladder. Some great properties are available at the lower end of the market but tight lending criteria and fewer government incentives will probably put the brakes on a fast-moving first-time buyer market for a while, at least.
Strong outlook for north-east property market
And at the higher end of the market demand continues to outstrip supply. However, as restrictions are eased and buyer-seller confidence returns, more affordable property with appropriate pricing shows that a positive recovery is on the cards. Simply put, the future looks good.
Fiona Gormley, director of residential Aberdeen at Savills, said: “There’s still strong appetite for property in the local area.
“So far this year, across north-east Scotland we’ve sold 94% more properties than during the same period in 2019 and every day, we’re bringing new homes to the local market.”