Despite moderate price falls, transactions in the Aberdeen area have been relatively stable. The combined annual number of sales across both Aberdeen and wider Aberdeenshire has remained at just over 8,000 over the past two years. This has been supported by increased new build activity in the city and suburbs such as Peterculter, Balmedie and Bridge of Don and more sales in locations that are within easy reach of Aberdeen, including the likes of Stonehaven, Inverurie and Westhill. This has occurred even though the average house price in the city fell annually by 4% during June 2019 compared to June 2018 and by 1% in the surrounding county over the same period.

Prices in the mainstream market have struggled to find a level since the housing market downturn, mainly due to a chronically high number of available properties, largely in the market below £200,000. Despite more realistically priced properties being launched, this trend looks set to continue as there are currently 5,780 properties available to buy across the market as a whole compared to 2,500 before the market downturn.

Supply is less saturated above £400,000, in a market which has benefited from improved transactional activity. Indeed the number of prime transactions above £400,000 increased by 6% to 486 over the last year; the first rise in four years. Robust activity in the prime strongholds of Aberdeen such as West End, Cults, Bieldside and Milltimber has been supplemented by strong growth in locations further afield such as Banchory and Ellon.

A 33% annual rise this year in the number of buyers registering with Savills in the North East indicates that demand for the Aberdeen area’s prime housing stock is continuing to recover. Along with a 13% increase in viewings, signs show that activity in the prime market will remain robust provided sellers maintain realistic price expectations.

The wider North East

Overall transactional activity across Angus, Dundee, Moray and southern Kincardineshire witnessed a recovery, with the number increasing annually by 4% during the year ending June 2019. The average transaction price increased by 3% over the same period, supported by an increase in higher-value activity. Prime transactions above £400,000 reached a record 96 over the last year, with more interest from Aberdeen buyers.

More significantly, Dundee saw a 9% annual rise in the overall number of transactions and a 4% rise in its average transaction price, supported by more activity above £300,000. Increased prosperity emanating out of Dundee also fed growth in the prime market of Angus, particularly in the new build sector.

The market above £300,000 also improved in Kincardineshire with an increase in transactions over the last year.

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