Increased confidence in Scottish property market as sales jump

Property sales are soaring in Scotland, up over 8% in the last quarter but prices are down 0.3%, according to the latest official figures from the Registers of Scotland.

The total volume of sales across Scotland from April to June increased by 8.1% compared to the same period one year ago. This has been consistent with the previous two quarters, with Registers of Scotland figures now showing a gradual sales volume increase over the previous nine months.

All property types showed an increase in sales volumes with Flats showing the biggest increase in sales volumes by 16.5%.

‘It’s extremely positive to see an upturn in the market with sales volumes increasing by 8.1% over the past three months. There have been some areas that have experienced a decrease, but with the total value of sales increasing by 7.7% compared to the previous year, it’s an encouraging indicator of improvements in the residential property market,’ said Registers of Scotland’s director of commercial services, Kenny Crawford.

And although prices have fallen overall, he pointed out that across Scotland some areas are experiencing significant price increases. In particular, Aberdeenshire is performing well, with an average price of £215,589, this is a 5.6% rise from the same period a year ago. East Renfrewshire recorded the highest percentage price rise of 6.2%. However, prices in Argyll and Bute have experienced a drop of 11.9%.

Detached, semi detached and terraced properties all showed a decrease in average price with terraced properties showing the biggest decrease at 2.9%. The average price for flats remained the same as last year’s quarter. Nevertheless, the average price of a residential property this quarter was £153,102 which is a decrease when compared with last year’s figures.

Independent property consultancy, CKD Galbraith, said believes there is a real indication of improved confidence in the Scottish property market. ‘As a firm we have experienced heightening confidence in the Scottish property market with the volume of sales agreed being up 30% on the same period last year and double the number of viewings being conducted this quarter since the first quarter of 2013,’ said Simon Brown, head of residential property at CKD Galbraith.

‘There have been further encouraging signs this summer with the competitive closing date system making a comeback across the country and in particular in Edinburgh, Perthshire and Ayrshire, where a number of properties quickly achieved over asking prices,’ he explained.

‘With a positive approach and sensible pricing we have seen more stability and confidence throughout the country this year. Both buyers and sellers appear to be comfortable with where the market currently stands,’ he added.

CKD Galbraith’s sales teams operating across the whole of Scotland handled in excess of £400 million worth of property in the 2012/2013 financial year ranging from cottages and conversions to country houses, farms and estates.