Spotlight: North East Scotland

North East Scotland
 
Wider North East market reaches new heights

15 November 2017, by Savills Research

Market confidence has increased in Angus, Dundee and Moray

 

The residential markets in Angus, Dundee City and Moray have remained relatively unaffected from the recent boom and bust experienced in the Aberdeen area.

FIGURE 2

Average monthly house price in North East Scotland

 
Figure 2

Source: UK House Price Index

Record price growth in Dundee City

There is an air of optimism about the future of Dundee City, where the new V&A museum is due to open in 2018. This will be the centrepiece of the £1 billion, 30-year transformation of Dundee City Waterfront. The increased confidence has supported growth in the local residential market. Dundee City’s average house price reached £125,847 in August this year, which is the highest monthly figure in 13 years.

Dundee’s price growth has been fuelled by a lack of supply. The number of private new homes built in Dundee City over the last 10 years is 45% below the amount in the previous decade. Furthermore, the Dundee City market, which is around two-thirds the size of Aberdeen City’s in terms of annual residential transactions, has 75% fewer properties currently available to buy.

As a consequence, the number of residential transactions during the first nine months of 2017 was 2% lower than the level last year over the same period. Despite this drop, prime transactional activity in Dundee City above £400,000 in 2017 reached its highest level in five years. This included the sale of Brackenbrae House in Broughty Ferry, which became Dundee’s first ever million pound residential sale earlier this year.

Ongoing investment in Dundee City is assisting the Angus market

Increased prosperity in Dundee has led to further growth in the Angus residential market. The average house price reached £144,788 in July this year, which is the highest monthly figure since 2008.

The number of residential transactions during the first nine months of 2017 was 4% higher than the level last year over the same period. The market has improved between £200,000 and £400,000 and has grown in the coastal areas of Monifieth, Carnoustie and Arbroath, supported by new build activity.

Increased new build activity is supporting the Moray market

In Moray, the average house price reached £149,360 during July 2017, which was highest monthly figure in 13 years.

Overall transactional activity has remained unchanged this year compared to 2016, however, there was improved activity above £300,000. The Moray market has been supported by private new build activity, with the level of house building going up by 24% during the financial year 2016–17 compared to 2015–16.

New build sales have supported the 54% annual rise in transactions in Forres during 2017, making up 23% of all activity in the town during the first nine months of this year. Meanwhile, the number of transactions in Fochabers reached 77 during the first nine months of 2017, which is the highest in 13 years.

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