22 Apr 2016
Figures reveal impact of oil price on Aberdeen property market
New figures have revealed the ongoing impact the fall in oil price has had on the north-east property market.
The Aberdeen Solicitors’ Property Centre's statistics for the first quarter of 2016 shows a decline in sales and a slight drop in average prices.
The report shows:
- In the first quarter of 2016 house prices in Aberdeen City and suburbs decreased by 1.7%.
- The annual house price change in Aberdeen City and suburbs is -4.9%.
- The annualised house price change over 5 years in Aberdeen City and suburbs is 3.1%.
Opportunities to 'move up the property ladder'
Bob Fraser, Senior Property Partner at Aberdein Considine, said that the slowdown in activity was offering opportunities to first time buyers and those seeking to climb the property ladder.
"As with any market, this is about supply and demand. There is a lot of supply because a number of people leaving the area because of work commitments elsewhere.
"As a result, demand is suffering. However, people looking to buy property right now are being presented with a favourable market.
"There is a realism among sellers and a willingness to accept offers, making it a great time to move up the property ladder.
"Those who are only selling face a tougher market."
He added: "Despite everything, Aberdeen still has a reasonably good economy - one which many other cities would be happy to have."
Property market 'still functioning'
Commenting on the figures, John MacRae, Chairman of the Board of Directors of ASPC said: “The first quarter figures for 2016 bear out what most of us are aware of already, namely, the local market is experiencing a slowdown in activity because of the general economic background to our local economy caused by the depleted oil price.
"It is no comfort to find that statistics bear out the general consensus and anyone involved in the housing market in Aberdeen knows that things are not as good as they were.
"It is important to note, however, that the market is still functioning. Despite the current situation, in the first quarter 1,126 sales took place through ASPC (2015 – 1,535).
"In the current market, sellers need to be realistic and there is evidence to suggest that sellers and buyers are approaching matters with a sense of realism.”
Aberdeen and Aberdeenshire property experts
To sell your home in a tough market, you need experience in your corner. Bob Fraser and Aberdein Considine have been selling homes in the north-east since 1981.
Our teams have been through oil downturns in the past and know which approach is best to find a buyer for your property.
To book a free property consultation call 0333 0066 333 or click here.