An improving Scottish million pound market last year saw the number of transactions soar from 211 in 2018 to 287 in 2019, just three short of the all-time high of 290 that took place in 2007.

There was a record 196 in Edinburgh, including 35 new build. Inner suburbs led the market, with 50 recorded in the Grange, Morningside and Merchiston area. The New Town, Stockbridge and Inverleith areas made a roaring comeback, with transactions almost doubling from a combined 28 in 2018 to 55 last year. Five took place on the charming Ann Street in Stockbridge, a record for this thoroughfare. Whilst Murrayfield recorded 30 in 2019, almost a half of them were new build.

Market confidence has spread into neighbouring East Lothian, which recorded 18 transactions in 2019, just two short of its 2007 total. Whilst the majority took place in and around North Berwick, there were four in the commuter village of Inveresk just outside Edinburgh.

With the exception of Edinburgh, East Lothian and St Andrews in Fife, the market elsewhere in Scotland remained unchanged. Despite strong demand, million pound transactions across Greater Glasgow fell from 31 in 2018 to 26 last year, primarily reflecting a shortage of stock available to meet demand and a lack of downsizing options for older sellers. Here, off-market deals, unusually, made up more than half of second hand transactions last year.

Comparison of 2007 and 2019 million pound markets

Whereas last year’s million pound market may have performed similarly to the peak of 2007 in terms of numbers, there were differences in the composition of those sales.

New build has become a much bigger contributor. While 2019 saw 48 top end new build transactions, there were only 19 in 2007.

Taxation has also played a much greater part in 2019. Sales between £1 million and £1.5 million have risen, but those above this level have fallen in response to the punitive charges under LBTT.

In geographical terms, Edinburgh’s share grew from a half of all transactions in 2007 to 68% in 2019. Now, as then, Edinburgh’s inner suburbs dominated the market, but the influence of outer suburbs such as Barnton, Cramond and Colinton has waned.

By contrast, suburban Glasgow saw its number fall from 45 in 2007 to 26 last year, with a significant contraction in the city area of Glasgow and Renfrewshire.

In Aberdeen and its surrounds, the peak of activity took place in 2014 during the height of the oil and gas market rather than in 2007, though the nine sales that took place in 2019 is down on both years. Performance in Fife, led by St Andrews, and the Lothians was the same as 2007.

But in country locations, demand has become more discretionary. Perthshire, the Highland and Islands, Scottish Borders and Ayrshire witnessed only 13 transactions in total in 2019 compared to 39 in 2007.

_{Read the articles within Spotlight: Scotland Residential below.}