Prime property prices in Edinburgh see strong price growth
Rising demand, especially at the top end of the market, has pushed up prices in Edinburgh with values up strongly across all measures, the latest figures show.
Prices in the prime market increased by 3.7% quarter on quarter, by 9.4% year on year and are up 26.5% compared with five years ago, according to the data from real estate firm Knight Frank.
The report points out that price growth is not dampening buyer demand with data from the Registers of Scotland revealing a 17.3% year on year increase in sales agreed over the 12 months to April 2018.
This combines with a period when stock levels remain down and the number of properties launched so far in 2018 is 16% lower than the same period last year.
The report also points out that price growth has bucked the national trend which has tended towards a moderation in values over the past 12 months, highlighting the current strength of the market in Edinburgh.
It follows a period of fairly modest growth in the city as the market adjusted to changes to policy and a greater level of political uncertainty. Agents noted that central Edinburgh remains in high demand, aided by the large scale redevelopment taking place there, including at Edinburgh St James.
Family homes in popular areas to the south of the city centre, including in Morningside, Newington and Merchiston have also been attracting renewed interest.
For properties valued over £1 million, a number of notable deals have been agreed this year in excess of Home Report valuations. Accordingly, price growth of 4.4% was seen in the second quarter of the year, above the wider average for the city and comfortably the highest rate of growth recorded for this section of the market since the inception of the Knight Frank index in 2008.
Indeed, the index report reveals that price growth for properties above £1 million has outpaced the rest of the market for two consecutive quarters.
Despite the positive sentiment surrounding the Edinburgh market at present, there remains a relative shortage of houses being put up for sale. In some cases, LBTT is still affecting supply. Potential home movers remain conscious about the high costs associated with moving and are therefore cautious about putting their home on the market, according to Oliver Knight, research associate at Knight Frank.
Looking ahead, he predicts that strong domestic and international demand for property in the capital and the continued imbalance between supply and demand will help underpin values as the year progresses.