New year, improving residential property market?

Stabilising, improving, optimistic. These are all words we’ve heard used recently to describe the market in Aberdeen and Aberdeenshire.

And, generally, they’re all true.

When it comes to sales volume, for example, things are definitely moving in the right direction.

Looking at our own statistics, 2018 saw a return to the busy sales figures we saw back in pre-downturn 2015: an increase on 2017 of more than 21%.

That said, the sales value was down 16% between 2015 and last year, which reflects the general ‘resetting’ of the price that we’ve seen across the whole market during that time.

So all-in-all, while 2018 was still a tough year, we saw activity and interest pick up: sales were happening and closing dates taking place, particularly for properties that were realistically priced to reflect the change in the market.

What’s next?

The one variable we can’t control is Brexit, and it’s hard to predict how that will affect the market. That aside, it continues to be a steadily improving picture otherwise as we start 2019.

Again, looking at our figures, while sales values were down compared with 2015, they did grow by over 11% compared with 2017, and I think we’ll carry on seeing this upward trend over the next 12 months, together with more properties being sold.

Another positive is that investment in infrastructure and facilities in the region — such as the A90 Aberdeen Western Peripheral Route and the new exhibition and conference centre — will likely have a positive impact on nearby properties in places like Stonehaven, Ellon, Westhill, Peterculter and Bucksburn.

And, as well as an improving picture for the oil and gas industry, the £350 million expansion of Aberdeen Harbour, due for completion in 2020, will likely open up significant opportunities for the city, for example. Aberdeen Harbour Board says benefits include up-scaled decommissioning activity as well as being able to accommodate larger commercial vessels and attract a bigger share of the cruise fleet.

A fresh start

So what new year’s resolutions should buyers and sellers think about

Sellers — take a pragmatic view, as well as advice from your solicitor, when it comes to your asking price, especially if it’s based on a home report that was carried out several months ago, or even longer. And remember it’s all relative. If you’re buying another property in this market, chances are you’ll get a good deal. And don’t forget, you can get in touch for a free, no obligation valuation.

Buyers — strike now. It’s something we’d said before, but it still stands true. If the market continues to improve, you may well see an impressive return on your investment over the medium to long term. Why not take a look at our properties for sale.

Mike Cunningham

Partner Mike Cunningham is an expert on all aspects of residential property and has more than 15 years’ experience at partner level in Aberdeen.

Posted, 10 January 2019 by Mike Cunningham
Categories: Private client | Residential property

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