Aberdeen property market shows signs of recovery in Q2 review
“Aberdeen Solicitors’ Property Centre Limited, in cooperation with the University of Aberdeen, Business School, Centre for Real Estate Research, has published statistics for the second quarter of 2021 relating to the Aberdeen Housing Market. The report is based on a constant quality methodology.
The main points arising from the report are as follows: -
- The quarterly house price change in Aberdeen City and Suburbs is +1.4%
- The annual house price change in Aberdeen City and suburbs is +3.2%
- The annualised house price change over 5 years in Aberdeen City and suburbs is – 2.7%
“The report released by the Centre for Real Estate Research at the University of Aberdeen Business School, for the second quarter of the year has just been released.
“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.
“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%.
“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.”
The full Quarter 2 report for 2021 can be read here.