It’s no secret that house prices in Aberdeen are down significantly from a few years ago as the city’s economy fluctuates with the oil price.
According to Savills, house prices in Aberdeen are down 26% from the 2015 peak.
However, there are new signs of recovery, with the Granite City bucking a national trend.
New research shows that across Scotland the number of properties on the market are increasing due to the cost of mortgages rising and the housing market cooling.
In Dundee, Edinburgh and Glasgow the number of properties advertised for sale have all increased by more than 50% year-on-year. In Inverness, the rise is 65%.
And then there’s the Aberdeen property market – completely out of step with the rest of the country.
Instead of the number of homes on the market increasing, it has actually reduced in number from 12 months ago.
DJ Alexander found the number of properties for sale in Aberdeen fell from 2,586 in April 2022 to 2,382 now – a drop of 204.
Why is Aberdeen market atypical?
Aileen Merchant, managing director of Stonehouse Sales and Lettings in Aberdeen, said the city’s market is “atypical”.
“The difference is due to having a high volume of properties that have been for sale for some time,” she said.
“This is mostly because the local economy has been negatively impacted by political uncertainty over the future of the oil and gas industry.
“This has resulted in the property market slowing over a period of years.”
But Ms Merchant said there are signs this is changing, with sales now coming through at a faster rate. She notes that in August 2021 there were almost 3,200 properties for sale.
Aberdeen house prices set to rise?
Ms Merchant said the chances that Aberdeen house prices will rise looks good.
But she warned it will take time to filter through to the market.
She adds: “While the city has recently been boosted by the higher oil price some of this positivity has been muted by the subsequent windfall tax on energy firms.
“This has led to some hesitancy in anticipated investment in the sector. This filters down into the property market depressing prices and extending completion times.
“New oil licenses will create more jobs and greater wealth.
“But will take time to come through. Ultimately this will have a positive impact on the buoyancy of the housing market.”
The upbeat opinion follows investor Steven Clark revealing his strategy for investing in and upgrading dozens of rental properties.
He is in the final stages of upgrading a 28-bedroom property in Spital.
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