Edinburgh property market 'red hot' as buyers bid over valuation

East central Scotland is continuing to experience a strong market for people selling their homes.

The ESPC says in its latest house price report that a shortage of properties, combined with continued demand from buyers, is resulting in available properties selling very quickly and achieving a higher selling price, particularly in central Edinburgh and other desirable areas.

East central Scotland had an 11.4% decrease in the number of homes available for sale between February and April 2017, according to new analysis from ESPC.

Nearly 86% of properties listed in that period were marketed as ‘offers over’, compared with 77.8% for the same three months in 2016, which ESPC says indicates just how confident solicitor estate agents and their clients are in achieving more than the Home Report value.

"We are seeing evidence of properties going for well above the Home Report valuation in Edinburgh. Statistical data shows that almost a quarter of sales in Edinburgh go for more than 10% above Home Report valuation," adds the property centre.

Lack of stock

While the number of homes sold in east central Scotland between February and April 2017 decreased by 9.1% annually, ESPC says this is not due to a lack of demand from buyers, but can be attributed to the shortage of properties coming to market.

The property expert reports that the types of homes showing the largest year-on-year increases in average selling prices are two-bedroom flats in Bellevue, Hillside and Broughton (+23.2% to £240,441), three-bedroom houses in South Queensferry and Dalmeny (+16.3% to £222,006) and one-bedroom flats in the Leith Walk area (+11.8% to £131,812).

All properties in east central Scotland have seen an average year-on-year rise in value of 3.3% to  £217,946, Edinburgh city is ahead 4% to £235,553 and Edinburgh city centre jumped by 9.2% to £302,326.

Seller's market

ESPC’s business analyst Maria Botha-Lopez said: “We are continuing to experience a seller’s market, which is largely due to the number of properties that are coming to market.

"This drives up selling prices as buyer demand continues to be strong.  Many potential sellers won’t market their property until they find a suitable property to buy, and the higher rate of Land and Building Transaction Tax is also having an impact on those who want to move up the property ladder, according to our solicitors.

“ESPC member firms are reporting an increase in buyer enquiries in the first quarter of the year.

"However buyers are finding it difficult to secure a property due to availability, and affordability as a result of being outbid - particularly at the lower, first-time buyer end of the market.

"Central Edinburgh is proving to be particularly competitive, as buyer demand is outstripping stock availability. It is clearly a good time for sellers to bring their property to market as they are likely to achieve over the asking price and to sell quickly.”

Hotspots

Jordan Mackay, Branch Manager at Aberdein Considine's Lothian Road office in the capital, said certain areas are experiencing a property boom at present.

"At present, our average time to sell in Edinburgh is just 11 days and two out of three properties on the market with us are going to a closing date.

"The market is extremely buoyant and 91% of our properties are selling for over the home report value.

"Leith Walk area, The Shore, Tollcross, New Town and Stockbridge are the current 'hotspots'." 

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