The Press and Journal (Aberdeen and Aberdeenshire)
City house prices fall 3% but experts see hopeful signs
New figures from Aberdeen Solicitors Property Centre (ASPC) show property prices in the city have fallen 3.1% in the past 12 months – equal to more than £9,000 on a £300,000 home.
But ASPC chairman John MacRae said a downward trend in interest rates, reduced-rate fixed terms and falling inflation give reason for optimism.
And there is hope among property experts that oil and gas investment will lead to “greater activity” in the housing market.
Despite that drop, there has been a 0.5% price rise in the last three months.
David Alexander, CEO of property agent DJ Alexander, said city prices have been static for years due to high numbers for sale, but there are signs of that slowing down.
He believed greater oil and gas investment will see new jobs, which will aid the wider economy.
He said: “The last year has seen property volumes fall by 9% comparing January 2024 with January 2023.
“There are still 2,352 properties advertised for sale but this is a step in the right direction as demand increases and starts to reduce the level of supply.
“I think there is cause for optimism in the coming year as more jobs and investment in the northeast translates into greater activity in the housing market resulting in faster sales and rising prices.”
In total, 993 properties were sold via ASPC between October to December – down 15.6% on a year earlier.
In Aberdeen, a typical flat was £121,506, a semidetached property £190,609 and a detached home £323,237.
Mr MacRae said: “We are now entering a phase where mortgage lenders are more optimistic regarding a downward trend in interest rates and are offering reduced-rate fixed terms. Inflation does seem set to reduce even further.”
Faisal Choudry, Savills head of residential research in Scotland, said: “The wider market is likely to bottom out midway through 2024 with mortgage rates gently reducing and affordability improving.”
While he expected oil and gas to contract and impact the city, he believed values could be helped by the growing north-east “professional, science, tech and health sectors”.
There was a mixed house price picture in terms of house prices from Q3 to Q4 last year north-east wide.
Inverurie saw the average detached home price rise from £315,824 to £319,188 and semi-detached properties from £180,581 to £182,411. Flats fell from £128,924 to £127,944.
Prices in Stonehaven improved, with the average flat up from £130,492 to £131,388 while semidetached properties rose from £176,725 to £178,783 and detached homes from £315,400 to £325,599.
Figures in Ellon show the detached market up from £269,094 to £274,278, semidetached rose from £160,983 to £166,017 and flats down from £97,943 to £97,153.