Aberdeen house prices are continuing to climb this year but there are warnings the second half of the year may see a “slight regression” according to north-east property experts.
Figures released by the Aberdeen Solicitors Property Centre (ASPC) showed property prices in Aberdeen city have risen by 2.0% the past year in a sign the market is “almost fully recovered.
In the second quarter of the year, residential property sales in Aberdeen have increased by 2.1% on the prior quarterly and in Stonehaven prices rose by 4.8% in the same period.
It was also encouraging news for Inverurie and Ellon with prices rising 2.3% and 1.8% respectively.
The report, compiled by the Centre for Real Estate Research (CRER) at the University of Aberdeen Business School, also showed the house price change over five years in Aberdeen has been -0.4%.
An improvement from -1.2% reported in the previous quarter.
The average price of a flat in Aberdeen fell from £126,576 to £126,070 and semi-detached properties increased from £187,863 to £191,718.
The detached homes market also grew from £320,026 to £326,196.
Positive signs across surrounding towns
Ellon, Inverurie, Stonehaven and the countryside have seen house prices rise across all dwellings.
In Stonehaven the average flat price increased from £133,564 to £137,727, semi-detached £180,771 to £189,437 while the largest rise was in the detached homes market from £302,066 to £316,436.
Inverurie figures showed the average flat price increased from £123,591 to £125,958, semi-detached properties £182,914 to £187,083 and detached properties ££298,115 to £305,916.
Prices in Ellon were also encouraging with flat prices rising from £114,859 to £120,244, semi-detached £158,492 to £161,316 and the detached market £268,633 to £274,571.
Properties in the countryside showed less substantial increases.
The average flat price went from £117,815 to £118,017, semi-detached £178,013 to £179,233 and detached £319,877 to £322,024.
Market showing good signs
ASPC chairman John MacRae said the data “suggest signs the market is almost fully recovered”.
He added: “We have seen signs that our local housing market has been improving and the second quarter statistics reinforce belief in a gradual but persistent improvement.
“What these figures show, I suggest, is that our market is almost fully recovered, in terms of property prices, from the downturn following on from the oil price deterioration.”
A total of 1,530 residential dwellings were sold in quarter two of this year, a change of -26.2% compared to the first quarter of 2022. This saw a change of -11.3% compared to the same quarter a year ago.
Mr MacRae said: “Numbers of transactions are down, year on year, by 11.3%. I think
we should not read too much into that as 2021 was, possibly, still influenced by the impact of recovery of confidence after covid lockdowns and may prove to have been an exception.”
Warning of “slight regression”
Activity in the housing market increased to 28.97% up from 27.46% in quarter one.
Mr MacRae added: “In simple terms, I understand this to mean that a slow but steady increase in activity is happening.
“I also understand the information to mean that, on average, houses are selling at the asking price.
“Given the general economic picture, and the peripheral political uncertainties, it will not be a surprise if progress continues to be of a modest nature, and we should not be downhearted if the second half of the year demonstrates a slight regression.”
