ASPC: Aberdeen sees annual house price increase of 3.2%

The annual house price change in Aberdeen City and suburbs has reached 3.2%, according to the latest Housing Market Report published by Aberdeen Solicitors’ Property Centre Limited (ASPC).

Created in cooperation with the University of Aberdeen Business School, Centre for Real Estate Research (CRER), the report found that the quarterly house price change in Aberdeen city and suburbs is 1.4%, while the annualised house price change over five years in the same area is -2.7%.

In the second quarter of 2021, 1,724 residential dwellings were transacted, a change of 34.5% compared to the previous quarter 2021Q1 and a change of 289.2% compared to the same quarter a year ago 2020Q2.

The transactions by dwelling type were:

• 484 flats, a change of 39.5% compared to the previous quarter 2021Q1 and of 332.1% compared to the same quarter a year ago 2020 Q2.
• 693 semi-detached houses, a change of 43.2% compared to the previous quarter 2021Q1 and of 289.3% compared to the same quarter a year ago 2020 Q2.
• 547 detached houses, a change of 21.3% compared to the previous quarter 2021Q1 and of 257.5% compared to the same quarter a year ago 2020 Q2.

John MacRae, chairman of the board of directors at ASPC, said: “This quarter, the results continue the positive note set out in the Report for the first quarter of 2021. The second-quarter figures are, in most years, a reflection of the fact that the second quarter is the most active of the year.

“Since the easing, in part, of the lockdown around late summer last year, it became clear that our local market was showing good activity in property sales, across the board, as our market sought to “catch up” after the enforced shut down. It was a matter of some speculation just how long the increase in activity would last and what, if any, effect would be discernible in price movement.

“In the first quarter of 2021, I was pleased to see that activity was remaining at an increased level, year on year – an increase in sales of 24.3%, compared to first quarter 2020. What I had not expected was the 5.4% price change.”

He continued: “The figures for the second quarter disclose two out of three indices showing positive movement. The quarterly price change is 1.4% and the annual price change is 3.2%. These are not inflammatory increases; they are, rather, a reassuring indication (taken with other indicators) that our local market may be recovering from the sharp decline after 2014/15.

“The other indicators include a rise in the number of transactions taking place. In the second quarter, 1,724 sales were completed – up 34.5% on the first quarter. Bear in mind we would expect some increase due to seasonal factors, but I am confident there is more than just seasonal factors at work. The increase in numbers is reflected reasonably consistently across the 3 main dwelling types.

“Compared to prices 5 years ago, our market remains down by 2.7%, but that figure is a reduction on the first-quarter figure of – 3.4%.”

He concluded: “Overall, I think these figures show a market where well-presented properties with up to date Home Report valuations will sell reasonably well. I am hopeful that, barring unforeseen events, our local market is beginning to find its feet.”

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