Demand for homes across Aberdeenshire has seen property prices in the area rise by 9.2%, according to the latest figures.
Local property expert Alan Cumming says the figures published by the chartered surveyor company Walker Fraser Steele are “encouraging” as the average house price in the area rose from £221,155 in June last year to £241,430 in June this year.
Mr Cumming, the estate agency director at Aberdein Considine, says there has been a big trend in people looking to move away from the city centre and settle in the Aberdeenshire countryside as new hybrid ways of working from home continue.
Detached, semi-detached and terraced properties in Ellon, Peterhead, Inverurie, Stonehaven and Banchory have proved particularly popular with buyers, says Alan.
“It’s definitely been an encouraging year so far for both the city and the shire,” says Alan.
“I’m not surprised that the figures are strong across the north-east and the country as a whole as the property market has been performing exceptionally well over the last two years.
“Aberdeenshire in particular has seen strong sales, especially in areas like Ellon, Peterhead and surrounding areas which has resulted in a shortage of properties.”
City centre prices
And although property prices only rose by 2.9% in the Aberdeen city area, Alan says this is positive news while warning that more needs to be done to attract people to the city centre area.
“The Aberdeen city market was slow last year but it turned a corner at the beginning of this year as we’re seeing people coming back into the city centre,” says Alan.
“I think we just need to work on the city centre to attract more of a cafe culture and buzz in the city, that would drive more positivity in the property market.”
But with the cost of living crisis continuing for the foreseeable future, Alan is under no illusion that the property market may slow down towards winter.
“People will hunker down over the winter when the cost of living crisis really hits,” says Alan.
“But at the end of the day people will always need to move home for various reasons.
“Interest rates are predicted to go up by 6% by the end of the year however as interest rates have been historically low, I believe the property market can still do well at a 6% interest rate.”
Scotland sees 10.5% rise
On a whole, the annual house price rose by 10.5% across Scotland with a strong 11.2% house price rise in the Highland region.
House prices in Moray were also extremely buoyant, rising from £180,396 in June 2021 to £206,127 in June 2022 while the Orkney Islands saw prices rising from £175,759 in June 2021 to £209,434 in June 2022 – a huge 19.2% rise.
In addition, the Shetland Islands saw a 14.3% rise in house prices.
Meanwhile, the Western Isles proved to be an exception to the trend as it saw house prices fall from £142,129 in June 2021 to £142,124 in June this year.
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