Premium property registered sales in Edinburgh were up year on year in January, according to research by estate agency Strutt & Parker
A total of 148 premium properties (>£300K) were registered as sold in the capital in the first month of the year, up from 131 in 2015, 136 in 2014 and 109 in 2013.
The average sale price in January was £227,899, down from £236,696 in January 2015 and the premium market share (the % of all sales that were greater than £300,000) was 21.1%, down from 23.9% in January last year and the 40% recorded in March at the height of the sales rush before the introduction of Land and Buildings Transaction Tax.
Blair Stewart, partner in Strutt & Parker’s Edinburgh office, said: “It is very encouraging to note that registered sales are up year on year and this fits with what we have seen in Strutt & Parker’s City department.”
Mr Stewart continued: “The average price is down but by a relatively insignificant amount and it is not something I am worried about. In many respects, the sales market is still adjusting to the unprecedented rush of premium sales before the introduction of LBTT last year, which saw record numbers of premium sales and the average price in Edinburgh spike at £320,257.
“Looking back at 2015, the value of Scottish property sales increased 8.2% on 2014 and the number of transactions was up by 4.5%. Edinburgh sales in particular, were up 8.3% to 11,991. This is largely a reflection of the LBTT effect, which is clearly demonstrated by our animated map (See Map).
“LBTT aside, however, the Edinburgh premium market has grown steadily in recent years from the lows seen in 2009. It has shown strength in the early months of 2016 – at Strutt & Parker we have some very exciting new properties on our books – and I am reasonably optimistic about where we are. ”
In the market area covered by Highland Local Authority, premium sales in January numbered 18, down from 37 in December and 25 in November, but up from 12 in January 2015, 13 in January 2014. The premium market share stood at 7.9% in January, down from the 10.9% high recorded in March.
In Aberdeenshire premium sales registered in January (42) were down on the same month a year ago when 61 such sales took place. This cooling contrasted with a strong finish at the end of 2015 which saw 122 and 120 premium sales (>£300K) respectively in November and December.
The average property price in Aberdeenshire in January was £203,329, down from £229,476 at the start of 2015.
David Strang-Steel, partner in Strutt & Parker’s Banchory office, said: “The long-term picture shows a steady increase in Aberdeenshire property prices over the last 10 years and, despite a drop in the last few months, Aberdeenshire property prices (£203,329) remain significantly higher than the average in Scotland (£163,610) with Banchory property prices averaging £278,356 in January.
“However, it is unusual for the average sale price of a property in Aberdeenshire to drop below the Aberdeen average which is currently £210,706.”
“These figures show that agents, buyers and sellers all need to adjust expectations. What will happen next is largely dependent on the oil economy.”
Across Scotland, 535 premium properties were sold in January, up from 494 a year ago. A total of 5,330 mainstream market properties under £300,000 were sold in January, up from 4,144 in January 2015. The average value of a house in Scotland in January was £163,610, down from £166,682 in January 2015.
Photography via Marketing Edinburgh and Visit Scotland