News In Focus
7 February 2007
Property market hotting up, say Warners
Last year witnessed a big switch from fixed price house sales, to properties offered at an upset price, heralding a return to a more competitive market in the Edinburgh area.
So says Warners’ estate agency partner Scott Brown, commenting on the market in 2006 when the Edinburgh legal firm again topped the ESPC table for residential property sales.
The firm, which operates four property shops in Edinburgh, recorded 1,120 sales for the year, equating to a total property value of just under £190 million, almost 13% up on its 2005 figures. Warners also listed for sale 1,102 properties in 2006.
Mr Brown said the record sales had been achieved against increased competition in the market, and an unpredictable market "characterised by a surge of renewed confidence which spread over the entire 12 months, effectively cancelling the normal spring and autumn peaks".
"We also saw a big switch away from properties being offered for sale at fixed prices and instead going to the market at offers-over, making the market much more competitive."
He added that 2007 was shaping up to be another challenging year. "The start of the year has been marked by a stark shortage of properties for sale, which is leading to some frantic competition and, in turn, healthy prices. We recently had a one-bedroom flat in Gorgie that had 47 offers which went for 40% over the asking price.
"While the impact of the interest rate rise is still to be tested, it appears a trend is emerging that people are willing to stretch themselves to buy one/two bedroom flats by looking at the purchase as long-term investment as opposed to looking to buy for, say, buy-to-let investment purposes."