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Prices in the Edinburgh prime property market increased by 3.3 per cent between the months of January and March.
This increase brought annual growth to 7.7 per cent, according to the latest analysis report from Knight Frank. Edinburgh prime property price growth has been driven by a rise in activity across the city, namely within higher price brackets. This is the fastest growth rate since the index was initiated 10 years ago.
In the above £1 million sector there was a 16 per cent increase in sales in 2017 compared with the previous year. Edinburgh accounted for 65 per cent of all £1 million plus sales in Scotland.
However, supply is dwindling, with 40 per cent fewer prime properties worth £500,000 or more offered for sale so far this year compared to the same period in 2016. This may impinge on 2018 transaction values
Transactions in the city were up 2 per cent last year, according to data from the Registers of Scotland. Edinburgh now accounts for 65 per cent of the sale market of property selling for £1 million or more. This is up from 55 per cent the previous year.
Activity was concentrated in the city centre. EH3 accounted for nearly a quarter of sales, followed by EH4 and EH10.
Oliver Knight has stated that the recent growth follows a period of more subdued activity in the prime market after the introduction of the Land and Building Transaction Tax (LBTT) in 2015. He said: ‘While activity was concentrated on central areas in 2017, it has started to ripple out to more suburban areas, particularly towards the west and south of the city, driven by the market for larger family houses in areas such as Murrayfield and Morningside. Demand remains strong, with current selling times averaging around seven weeks across all price bands, compared with more than eight weeks at the same point in 2017.’