The property market in Edinburgh, the Lothians, Fife and the Borders continued to be strong during June-August 2021, with the average selling price up 5.8% year on year (YOY) to £276,703.
The area that performed best, achieving the biggest annual rise at 8.6%, was West Fife & Kinross where the average selling price stood at £197,920. Dunfermline recorded a material 15% increase to £203,628 compared to the same period in 2020.
Properties in the Borders, on the other hand, experienced a 10.6% drop in the average selling price to £224,176 although this can be linked to a large number of one and two bedroom flats coming to the market rather than plummeting property values.
In Edinburgh the average selling price was £292,977 up 4.6% compared to June-August 2020, with North West recording the highest increase of 18.7% to £276,315. However, city centre homes saw a 9.4% YOY decrease to £314,014.
When taking a look at how different property types in the capital fared over the period of June-August 2021, two bedroom flats in Portobello and Joppa experienced some of the biggest increases in the average selling price at 25.9% YOY to £281,154. Conversely, two bedroom flats in Morningside and Merchiston recoded the highest decrease at 14.2% YOY, taking the average to £309,474.
Overall, larger three bedroom houses continued to be in high demand, with these property types in South Queensferry achieving an average selling price of £318,286, an increase of 36.3% when compared to June-August 2020.
The most affordable property types were two bedroom flats in Dunfermline, achieving on average £112,682 in the last three months.
Demand outstrips supply
Due to continued demand-supply imbalance, properties in Edinburgh, the Lothians, Fife and the Borders achieved 106% Home Report valuation between June-August 2021, up 3% YOY.
To secure their chosen property, buyers in East Lothian paid the most above Home Report valuation – an average of 109.2% in the past three months, up 7.3% YOY.
The highest increase in the amount paid over Home Report valuation was recorded in the Borders, up 7.4% to an average of 106.1%, followed by East Fife, up 7.1% to 108.7%.
Properties in Edinburgh city centre experienced a 2.2% YOY decrease, bringing the average down to 102.6% of Home Report valuation. The steepest decline of 4.7% was noted in one bedroom flats in Abbeyhill and Meadowbank, although properties in these areas still achieved an average of 108% of Home Report valuation. Three bedroom houses in Currie, Balerno and Juniper Green, on the other hand, achieved 113.3% of Home Report valuation, up 14.3% on 2020.
Quick selling times
Between June and August 2021, property sales times across Edinburgh, the Lothians, Fife and the Borders reduced by eight days compared to the same period last year, taking only 14 days for a property to go under offer. The areas with the fastest selling homes in the last three months were West Fife & Kinross with a median sales time of just 10 days (reduction of 50% on 2020), followed closely by East Fife and the Borders, with a median time for a property to go under offer of 12 and 13 days respectively (68 and 72 days respectively faster than 2020).
The capital city saw some variations, with Edinburgh South West recording a median selling time of just 14 days (86 days faster than the same time last year), and Edinburgh City Centre experiencing slower times to sell with a median of 25 days (seven days slower than 2020). New Town and West End properties were the slowest to go under offer at 44 days (36 days slower than 2020).
Looking at the fastest selling properties by type, three bedroom houses in Currie, Balerno and Juniper Green, and in South Queensferry and Dalmeny, both recorded a median sales time of just nine days (83 and 56 days respectively faster than during June-August 2020).
As buyer demand intensified, 36.7% of properties went to a closing date in the period of June-August 2021, up 10.1% compared to the same time last year.
Fewer properties coming to market
Whilst the volume of property sales increased 137.5% YOY across Edinburgh, the Lothians, Fife and the Borders, the number of new properties coming to market decreased 5.8%.
Dunfermline had the highest volume of property sales, whilst two bedroom flats in Leith recorded the largest sales volume, up 133.3% YOY. Leith was also the area with the highest volume of properties coming to market, although this figure was actually down 4.5% on 2020.
Paul Hilton, CEO of ESPC, commented: “Although the picture largely looks the same across the property market during June to August this year, we are starting to see some changes come into play. Average sales prices are continuing to rise in many areas, particularly in coastal and countryside locations.
“As the volume of properties coming to market begins to return to the levels we saw pre-pandemic, we are still seeing higher levels of activity from buyers, which will mean that buyer demand will continue to outweigh the supply of properties available. This, in turn, may affect average selling prices in the months to come, and we may see an increase in both the amount of homes going to closing dates, and the amount over Home Report valuation that buyers are willing to pay.
Dunfermline and Leith continue to be the two strongest locations in terms of affordability and volume of properties available, offering buyers the opportunity to purchase their first homes in these thriving areas.”