The ESPC’s November House Price Report contained a number of interesting insights into the property market in East Central Scotland. However, the stand-out statistic was that the price of two bedroom flats in Edinburgh’s New Town and West End has risen by almost 27% in the past three months. Can this really be true?
The report showed that, as well as showing an increase in selling price to £398,804, the volume of these New Town and West End properties being sold has increased by 18.5%. These central flats are achieving on average 13.5% over the asking price, while the average time to sell is 17 days for this area, 31.3% faster than the same time last year.
Commenting on the figures, ESPC’s business analyst Maria Botha-Lopez said: “Properties in the New Town and West End are some of the most sought-after in Edinburgh, and over the last three months they have been snapped up quickly, going for considerably over the asking price. As Edinburgh’s city centre is becoming a hot spot for visitors to stay, there could be a correlation between the popularity for New Town properties available as holiday lets.”
The question of course is whether this startling figure is genuinely reflective of actual house price growth in the area.
Commenting on the figures, Managing Director of MOV8 Real Estate, Robert Carroll, stated:
“The New Town and West End of Edinburgh feature some of the most beautiful architecture that you will find in the UK, something that is reflected in the fact that Edinburgh’s New Town is a UNESCO World Heritage site. With large windows, high ceilings and original features being commonplace in these properties, it is no surprise that flats in this area are in high demand and that prices are strong.
“Of course, property prices don’t increase by over 25% in a three month period so the astonishing increase in selling prices can likely be attributed to a different mix of properties being sold compared to the previous period. Two bedroom flats in this area vary hugely in size and layout. Even within the New Town and West End area, some streets are traditionally more desirable than others and traditional, Georgian flats sit alongside more modern developments with prices varying significantly depending on the type of period of construction.”
Elsewhere, the ESPC report picked-up on the continuing popularity of the Gorgie and Leith areas, with the report stating that the types of properties that have been selling the most in this reporting period have been two bedroom flats in Leith and one bedroom flats in Gorgie.
Robert Carroll further commented that, “Our experience has been that more affordable residential areas such as Leith and Gorgie have seen strong demand throughout 2017 and that sellers in these areas have been achieving fantastic selling prices. Many of the properties that we have sold in Gorgie and Leith in 2017 have sold in a matter of days.”
Although these headline figures under a bit of further examination are not entirely representative of general market trends, there is no doubt that the property market continues to be strong for sellers in Edinburgh and that the New Town, West End, Leith and Gorgie continue to be in high demand with buyers as we approach the end of 2017.