Property prices in Edinburgh’s prime market have increased by 3.4% in the 12 months of July 2019 and by 0.9% in the third quarter of the year, the latest city index shows.
At the top end of the market values have soared, up by 24% for £1 million plus sales over the year with the EH10 and EH9 postcodes seeing the biggest number of sales, according to the date from real estate firm Knight Frank.
During the last quarter there were 7.5 new applicants for every new instruction, up from 5.7 in the third quarter of 2018. The strongest demand was in the market up to £750,000, where there were 8.7 buyers per new instruction.
But it points out that whilst annual growth overall compares favourably to prime regional markets across the UK, where prices have fallen 1.7% on average, it is down from 10.5% annual growth at this point last year.
‘Political rhetoric has ramped up in recent months, and has moderated price growth. So has a lack of urgency among some buyers, though agents report encouraging sales activity, particularly for properties that are considered best in class,’ said Oliver Knight, residential research partner at Knight Frank.
The report also points out that the number of transactions for homes valued above £500,000 has risen, by 4.5% year on year over the 12 months to July 2019, latest figures from the Registers of Scotland shows. Some of the most notable growth has come from higher price bands, with an 11% annual rise in sales between £750,000 and £1 million, and 24% growth in sales above £1 million.
‘A shortage of available properties being listed for sale means the imbalance between supply and demand in the city is likely to continue, especially given the cautious approach being employed by some vendors as uncertainty surrounding Brexit mounts,’ said Knight.
‘Buyer demand remains strong, however, evidenced by the continued growth in prime sales volumes, and competitively priced stock will continue to trade well. Agents note that off-market deals, where properties are offered to buyers and sell before being launched formally, have become more commonplace within higher price brackets, and this is expected to continue,’ he added.
