Property Prices in Scotland are Falling – And Sales Remain High
In a significant contrast to the previous year, house prices in Scotland have fallen by 8.4%, to just £159,198. However, demand for Scottish properties hasn’t been this strong in many years. A total of 19,802 homes were sold from January to March – the most sales in these months since 2007-2008.
Which Locations Are Performing Well?
Unsurprisingly, ever-popular Edinburgh took the largest percentage of sales in terms of net worth – valuing £554.6m in total for the first quarter of this year. However, Scotland’s capital also saw the most significant drop in house prices – with the median price being £175,000; a 14.6% reduction from the previous year.
Other areas also performed well. Midlothian experienced an impressive 48% increase in mainland sales, and sales on Orkney doubled.
Where to Invest in Property?
Edinburgh is not the only location to have experienced a drop in average house prices. The price of a detached home in Aberdeen has dropped by a fifth, and similar properties in Glasgow and Inverclyde have also reduced in price (-21.3% and -27.4% respectively).
As a result, property investors are now showing considerable interest in these areas – and competition remains fierce. In Glasgow, an average house sale has around 8 bidders, and in Edinburgh, this can be as high as 30.
Certainly, 2016 seems to be a good time to start investing in property in Scotland – when prices are low, but look set to recover in the future.