Edinburgh prime property worth over £2 million falls sharply

Prices fell only fractionally in the final quarter of the year, down just 0.3%, the Edinburgh Townhouse Index from Knight Frank shows.
 
The most expensive properties have seen their values fall furthest during 2010 and are down 12% while properties in the New Town and the West End have shown the strongest performance, up 1%.
 
It has been a very difficult year in the Edinburgh property market and the majority of houses have fallen in value. There have, however, been some active signals emerging and a positive start to 2011 is forecast, according to Matthew Munro, head of Edinburgh city sales at Knight Frank.
 
In most price brackets, values fell only fractionally in the final three months of the year and houses worth between £1 million and £1.5 million actually recorded a small increase. Only those properties worth over £2 million saw a significant decline. ‘It was this level of the market that saw the biggest growth during the pre-credit crunch banking boom, so it not surprising that it is now seeing the biggest correction. The positive news for buyers is that this presents a golden opportunity for anybody who wants to purchase some truly stunning townhouse properties,’ he explained.
 
‘The New Town and West End markets have been particularly resilient this year, with property prices ending 2010 some 1% higher. There was also positive growth in the north of the city in the final three months of the year,’ Munro said.
 
‘The situation we are starting to see now is a growing pool of cash or mortgage-approved buyers, but a limited number of realistically priced houses for them to choose from. Where we have been able to match willing buyers and sellers we have achieved some good sales, but pricing remains key. Buyers simply will not bother looking at overpriced houses,’ he added.
 
‘I think we will see even more buyers emerging during the spring and I am also talking to a lot more potential vendors who want to come to the market at the same time. I don’t expect prices to increase significantly during 2011, but I do believe that we will see a return to a much more active market in Edinburgh,’ Munro concluded.