Million pound market

There was a 20% increase in transactions above £1 million in Scotland, with 148 sales recorded during the year ending September 2014 (see Graph 2). This is now only 7% behind the 10 year annual average. Edinburgh, the traditional hub of the million pound market with a 48% share, saw a slight rise at the top end, representing 71 transactions.

Such sales in the Aberdeen area reached a record high of 30 transactions, up 30% from 23 during the previous 12 month period. This included 11 new build sales, with six taking place at a single development in the West End of the city.

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Estates market

The hangover from the Scottish Independence debate, coupled with various changes within the estates sector, including Land Reform, all have the potential to impact on the future viability of this market. As a result, there are likely to be more owners tempted to sell in 2015, which is good news for those committed to buy in spite of these proposed changes.

Only eight estates have sold so far this year, of which Savills has sold four. Interestingly, only two of the estates were launched and sold in 2014, with the other six having been available in 2013. Analysis suggests sporting values have weathered any recessionary, legislative and political buffeting. Viewers and buyers have become increasingly international, recognising that Scotland offers a relatively less bureaucratic alternative to other European countries. Furthermore, with the recent surge in London property prices, Scottish estates have never looked such good value for money.

Next year is likely to bring an uncertain rural market, as details of Land Reform proposals and CAP reform continue to emerge. In the meantime, shrewd buyers may secure their properties ahead of the stronger competition that will arise when the dust on these issues finally settles.

Taken from:
Spotlight: Aberdeen Area Residential Market