Price of flats in the capital rockets by a quarter
The average selling price of two-bedroom flats in Edinburgh’s New Town and West End have rocketed by more than a quarter over the last three months, as investors cash in on a boom in holiday let opportunities, a report has revealed.
As well as showing a 26.4 per cent increase in selling price to £398,804, the volume of these Newtownandwestendproperties being sold has increased by 18.5 per cent, indicating that the rise is not solely attributed to a shortage of properties driving up demand.
Experts said a rise in investors snapping up properties for short term lets had boosted demand.
The report from the Edinburgh Solicitors Property Centre (ESPC) said that the central flats are achieving on average 13.5 per cent over the asking price, while the average time to sell is 31.3 per cent faster than the same time last year.
ESPC’S business analyst Maria Both Lopez said: “Properties in the New Town and West End are some of the most soughtafter in Edinburgh, and over the last three months they have been snapped up quickly, going for considerably over the asking price. As Edinburgh’s city centre is becoming a hot spot for visitors to stay, there could be a correlation between the popularity for New Town properties available as holiday lets.”
Robert Carroll, managing director of Mov8 Real Estate, said: “Property prices don’t increase by over 25 per cent in a three month period so the astonishing increase in selling prices can likely be attributed to a different mix of properties being sold compared to the previous period. Twobedroom flats in this area vary hugely in size and layout.”
The report said that other areas of Edinburgh that are proving to be in high demand in Edinburgh include Polwarth, Shandon and Tollcross, where average selling prices have increased by 16.8 per cent, and are achieving the highest percent of Home Report valuation, at 109.6 per cent of the offers over price.
Two-bedroom flats in Leith and one-bedroom flats in Gorgie have been the most popular types of property, generating the most sales over the period, the study found. However one bedroom flats in Gorgie, along with Craigentinny, continue to be amongst the most affordable in Edinburgh.
The report found that time to sell across east central Scotland has slowed down over the past couple of months from its peak over summer with a median time to sell of 17 days,
0 Prices in the New Town and West End are up 18.5 per cent due to a “seasonal quieting down” in the lead up to Christmas.
Ms Both Lopez added: “As we come into the Christmas season we tend to see a slowdown in the market, which is reflective of the slight decrease in the number of homes being sold and the longer time to sell compared with the last couple of months. However, properties are still selling faster than the same time last year.”