Edinburgh property prices boom by more than £77,000 in one year

The value of a two-bed flat in Edinburgh's New Town and West End has shot up by 21.7% in just one year.

Latest figures from ESPC reveal that their value hit an average £432,990 in the last three months to January - up more than £77,000 year-on-year.

These two-bed flats recorded the largest percentage increase for all areas in east central Scotland.

Strong demand from both markets

Jamie Fraser-Davidson, business analyst at ESPC, said that, with stunning Victorian and Georgian buildings and the amenities of the city centre a stone’s throw away, it was unsurprising that there was strong demand from flats in the New Town and West End, as they were likely to attract both buy-to-let investors and those who simply wanted to live in the city centre.

Second on the price-rise table was three-bed houses in Corstorphine, Clermiston, South Gyle  and East Craigs, which were up 15.7% to £339,228.

ESPC said November 2018 to January 2019 saw a 21.6% year-on-year increase in the number of homes going on the market.

It added: "This is slightly less pronounced than the annual increase in the fourth quarter of 2018 of 23.9%, but still indicates seller confidence in the current market conditions.

"The increase in the number of homes coming to market in recent months has had a positive effect on sales volume, which has increased by 11.9% year-on-year."

The last three months saw a typical selling price in east central Scotland of £239,709 - 3.6% ahead year-on-year.

Short selling times

ESPC added that homes in the area are continuing to achieve relatively short selling times.

There was a median selling time of 23 days during the last three months – however, this was three days slower year-on-year.

In east central Scotland in this period the average percentage of Home Report valuation achieved was 102.7% – a 0.8% decrease on the same period a year ago.

During the latest three months, 23.4% of sales went to a closing date compared to 28% previously.

ESPC said the slightly longer selling times, a marginal decrease in percentage of Home Report valuation achieved and a decrease in number of sales going to a closing date could suggest positive news for buyers, as they now had a greater volume of homes to choose from.

But it went on: "However, the fact that these changes are relatively small, coupled with continued year-on-year increases in average selling prices, also shows that buyer demand remains relatively strong."

In Edinburgh in the last three months, the average selling price rose by 5.1% to £262,911.

The typical price achieved in the city centre was £331,987 – up 7.2%.