Source: Savills Research
Prime activity in Tayside is shifting to a new level and creating affordable opportunities.
Properties in Tayside below £400,000 have traded well during the year ending March 2015, although the market has been more cautious above this level. Careful marketing, including targeting and appropriate pricing, has been key to successful sales.
While there was some demand from further afield, the majority has been from local buyers in the lower price brackets. Looking ahead, the region is likely to see the return of London property equity. As the heat comes off values in the UK’s capital, buyers may well decide that it is a good time to purchase in Scotland, which is a rising market and continues to offer value for money.
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TABLE 1Five-year residential values annual change forecast
Residential sales activity across Tayside increased annually by 6%, in line with the rest of Scotland. There were a number of areas which outperformed, including Perth & Kinross, which saw a 14% increase in activity.
There was a 29% annual rise in sales at £1 million and above across Scotland, reaching 188 during the year ending March 2015. This is a small but important sector of the Tayside market which saw six such sales during this period.
Sales activity in Dundee remained stable across all price bands. There has been little in the way of new housing development, which would have the potential to stimulate further sales activity among buyers and sellers alike.
There was an annual rise of 2% in sales activity in Angus across all price bands. However, within that geographical area, the number of properties selling between £200,000 and £400,000 saw a significant increase of 60%. This surge is likely to fuel the market further up the chain in the second half of 2015 as those sellers trade up the property ladder.
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GRAPH 1An emerging market between £200,000 and £400,000
Sources: Registers of Scotland / MyHousePrice.com / Savills Research
Housebuilding in Aberdeenshire increased by 48% last year, absorbing buyer demand for prime housing (above £400,000) which had been spilling out from Aberdeen City into Angus in previous years.
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TABLE 2Strong growth in transactions at £400k and above
Sources: Savills Research / MyHousePrice.com
Properties in Tayside locations that are easily commutable to Edinburgh, Glasgow or Aberdeen have performed relatively well. These areas include Kinross, Auchterarder and North Angus/Kincardineshire.
Tayside has traditionally been a relocation hotspot and it continued to attract second home owners and retirement buyers from outside the region within lower price brackets. However, those investing further up the market, often from south of the border, may have been holding back in the light of continued political uncertainty.
Looking forward, Tayside is likely to see further growth over the next five years, albeit at a slower rate compared to Scotland’s city hubs. As a consequence, there will be opportunities for buyers to take advantage of relative affordability.
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