Prime property prices in Scotland increased by 0.3% in the fourth quarter of 2013, the second consecutive quarter of price growth, the latest index shows.
Prime property prices in Scotland increased by 0.3% in the fourth quarter of 2013, the second consecutive quarter of price growth, the latest index shows.
The strong second half of the year means prices for Scotland’s best properties have risen by 1.6% on an annual basis, according to the latest Prime Scottish Property Index from Knight Frank.
Prices for homes worth under £1 million, did better with an increase of 1.8%, but overall prices remain 24% below the market peak in the fourth quarter.
The data reveals that price performance in the final quarter of the year was mixed across Scotland. Prices rose or were unchanged during the quarter in six out of the seven main Scottish regions, with a 1.3% rise in the Central region the biggest increase.
The analysis of market activity over the past three months confirms a more positive picture is emerging, with the number of sales agreed during the quarter 10% higher than the comparable period last year.
The number of individuals registering their interest in purchasing a prime property in Scotland was up by over 50% over the same period, as were the number of viewings conducted.
The report also points out that in 2013, the appetite among buyers for homes under £1 million in key regional towns has been strong and increased activity from buyers has had a knock-on effect on prices at this level.
‘As evidenced by rising prices and an increase in transactions, the second half of 2013 has marked the start of a turnaround in fortunes for the prime Scottish country house market,’ said Ran Morgan, head of Knight Frank’s Scottish residential department.
‘It is encouraging to see that this recovery is taking place in rural as well as urban areas. Rising prices across almost all the regions is reflective of the more positive mood we have seen among both buyers and vendors,’ he explained.
He pointed out that the coming year is likely to throw up its own unique challenges, with the referendum on independence scheduled to take place in September. ‘We remain confident that the recovery in transactions and prices seen during the second half of the year will carry on into 2014 as the Scottish economy continues to strengthen,’ he added.
According to the Knight Frank/Markit House Price Sentiment Index, households in Scotland are more confident that the price of their property will rise over the next 12 months than at any time since April 2010.