It shows that buyer activity and interest in the market is picking up, according to property firm Knight Frank. Its index also shows that on an annual basis prices are down 2.1%. In Edinburgh the property market was more resilient and prime prices are up 0.2% on the year.
The ratio of buyers to available properties, which stood at 3.6 in the second quarter of 2012, was 3.8 over the last quarter. The number of property viewings across the prime Scottish market was also up significantly year on year, by 67%.
This pick up in buyer activity is especially noticeable in the sub £1 million price bracket. Here, the number of new applicants was up by 8% in the year to June compared to the same period of 2012.
Ran Morgan, head of Knight Frank’s Scottish residential department, said that positive signs are emerging. ‘Sales are happening and tend to be concentrated in the sub £1 million price band where there are a good number of well-presented homes available,’ he explained.
‘Vendors bringing their homes to market are also now generally more accepting of the need to price their homes more competitively, and this has helped spark interest among buyers,’ he added.
The firm has noticed an increase in the number of local buyers looking to return to the market. Many remained on the sidelines towards the latter end of last year as prices continued to fall, but the feeling now is that they’re ready to make a move.
‘However, given the ongoing tough economic conditions, we are seeing variations in terms of market performance. In the £1 million plus market, for example, there is very limited supply across all regions as well as a shortage of new applicants, and activity levels reflect this,’ Morgan pointed out.
A snapshot of searches for Scottish property on Knight Frank’s global property website highlights Scotland’s enduring appeal for both domestic and international buyers. There was a 38% rise in total searches for Scottish property during the first five months of 2013 compared to the same period last year.
Matthew Munro, partner in Knight Frank’s Scottish Residential department, confirmed that the strongest sector in terms of activity has been for properties up to and around the £1 million mark.
‘Since the beginning of the year activity and enquiries in this section of the market have noticeably picked up. The general feeling is that prices for sub £1 million homes now look good value for money, especially for buyers relocating from London and the South West,’ he pointed out.
'In fact, we have noticed a resurgence in the number of individuals looking to relocate to Edinburgh from England so far this year, with the city’s excellent schools a particular draw. However, the market remains price sensitive with some buyers wary of committing immediately. Many are happy to wait up to eight months before making a decision. This is especially true for properties worth between £2 million and £3 million, explained Munro.
‘As always, well presented and competitively priced houses attract the greatest interest from potential buyers who, whilst cautious, continue to confirm their interest,’ he added.
