Scotland's Prime Property Market

Scotland's Prime Residential Market
 
New build outperforms

8 September 2017, by Faisal Choudhry

Scotland’s new build sector has outperformed the wider market, with support from Government incentives. Meanwhile, mixed-use schemes in central Glasgow will deliver future homes and workspace, changing how we live, work and socialise

 

Scotland’s new build market saw a 5% annual rise in the number of transactions during the year ending June 2017. The market continues to be supported by the Help to Buy equity loan scheme, which had contributed to 25% of all new build completions by the end of last year.

The new build hubs in Scotland are Edinburgh, Glasgow and Lanarkshire. Together, these areas made up 36% of all new build transactions. The biggest increase in activity took place in East Lothian and Fife.

The new build market was most active in the price bands between £200,000 and £400,000. Above £400,000 the market is adjusting to LBTT, but only up to £700,000. Above £700,000, the new build market has seen a drop in annual activity. We expect much anticipated trophy developments in the West End of Edinburgh and the Park District of Glasgow to boost the top end of Scotland’s new build market over the course of the next couple of years.

Mixed-use development opportunities in central Glasgow

Mixed-use schemes will be the key drivers that bring forward new residential, office and leisure developments within central Glasgow. In doing so, these will change how we live, work and socialise.

For schemes with a residential component, proximity to established markets is important. The Merchant City and West End markets will be the main drivers. The Merchant City commands a premium due to its residential reputation, central location and proximity to the University of Strathclyde.

The West End is larger, both in respect of transactions and geography. Due to a comparatively high transaction value, the West End creates opportunities on its periphery. These have included Finnieston and Park areas, which are now firmly established and are creating opportunities on their own peripheries, as they consolidate and improve.

 
Park Quadrant Residences, a development of 98 apartments in Glasgow's West End will complete the final quadrant of Park Circus

▲ Park Quadrant Residences, a development of 98 apartments in Glasgow's West End will complete the final quadrant of Park Circus


Glossary

Wider market refers to residential transactions across all price bands, obtained from the Registers of Scotland. Prime market refers to transactions at £400,000 and above. House prices were obtained from the UK Government House Price Index. Selling times and the number of properties being launched onto the market were obtained from our monitoring of various property portals. We have used postcodes to identify neighbourhoods in Edinburgh, including EH1 3, EH2 and EH3 6 (New Town), EH3 7 (Edinburgh West End), EH4 3 (Ravelston), EH12 5 and EH12 6 (Murrayfield), EH5 3 and EH6 4 (Trinity), EH3 5 (Inverleith), EH4 1 (Stockbridge), EH4 6 (Barnton & Cramond) and EH13 0 (Colinton). Greater Glasgow refers to the Local Authority areas of Glasgow City, East and West Dunbartonshire, North and South Lanarkshire, East Renfrewshire, Renfrewshire and Inverclyde.

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