The price of prime properties in Scotland fell by 0.4% in the first quarter of 2012, slightly lower than the 1.3£ decline seen in the last three months of 2011, according to new figures published today (Monday 09 April).
The Knight Frank Prime Scottish Property Index also shows that prices are down 3.6% year on year but prices in the Scottish Borders are bucking the trend, up by 0.4% in the first three months of the year. Prices in Edinburgh are holding, remaining unchanged in the first quarter, ending three consecutive quarterly falls.
'Prime Scottish property prices outside Edinburgh fell again in the first three months of the year, but at a more modest rate than in previous quarters. Average values of prime Scottish country houses have been falling or static for nearly two years now, but the 0.4% decline in the first three months of the year is the smallest fall since June 2010, when prices rose by 0.8%,' said Grainne Gilmore, head of UK residential research.
There are also wide regional variations in prices. While values in the Scottish Borders are back at levels seen in June 2010, those in the North East of Scotland fell by 0.9% between January and March. However, price falls in Argyll moderated noticeably, with prices declining by 0.7% after two consecutive quarterly falls of more than 2.5%.
'As we forecast back in December, activity in Edinburgh has bounced back during the first couple of months of the year and we expect to see this ripple out to the regions. There has certainly been an influx of determined vendors in Edinburgh and outside the capital who are keen to achieve a sale and have priced their property to suit the market in order to achieve this,' said Ran Morgan, head of Knight Frank's Scottish residential department.
'Vendors who are still expecting prices in line with what they may have expected to received two or three years ago are struggling to attract interest from buyers. Buyer interest is strongest in the very best properties, priced correctly,' he added.
He pointed out that while families can move within the major Scottish cities without necessarily uprooting their life in terms of children's schools or their social life, moving across the country requires a bigger commitment and there is evidence that some families are simply staying put, rather than making such a move.
But there is still strong interest in the very top end properties among domestic and overseas buyers, especially if the property is unique or unusual. 'House prices in areas with good schools or transport links to Glasgow, Edinburgh or Aberdeen continue to lead the way, with prices in the Borders up 1.6% on the year. Likewise prime property prices in the Lothians have fallen by just 1%, a modest decline compared to the 7% annual fall in prices in the South West, an area which doesn't benefit from such strong schooling or transport links,'...
SOURCE Propertywire
