ASPC: Aberdeen house prices rise marginally this year

ASPC also found that the house prices in Aberdeen City and its suburbs rose by 0.9% in the past year, while the annualised house price change over five years in the same area is -4.7%.

In the second quarter of 2020, 443 residential dwellings were transacted by ASPC, signalling a change of -57.0% compared to the previous quarter and a change of -64.4% compared to the same quarter a year ago.

The transactions by dwelling type were:

• 112 flats, a change of -65.3% compared to the previous quarter 2020Q1 and of -69.4% compared to the same quarter a year ago.
• 178 semi-detached houses, a change of -57.0% compared to the previous quarter 2020Q1 a nd of -61.3% compared to the same quarter a year ago.
• 153 detached houses, a change of -48.0% compared to the previous quarter 2020Q1 and of -63.3% compared to the same quarter a year ago.

Commenting on these figures, John MacRae, chairman of the board of directors of ASPC, said: “We knew that the Government strategy of lockdown was going to have severe effects for nearly all areas of business; the latest report shows just how dramatic that has been. Compared to the same period in 2019, sales fell by 64%. Given the severity of the lockdown provisions this should not be regarded as unexpected.

“Flats were most affected with a drop in volume of 69% year on year. Semi detached houses saw a drop of 61% year on year. Detached houses saw a drop of 63% year on year. Unsurprisingly, this was matched, during the second quarter, with an even more severe drop in properties coming to market. In the early part of lockdown, new insertions on ASPC dropped almost to zero.

“Since then, however, things progressed and since the easing of lockdown, insertions have risen, quickly, to near normal levels. This activity appears to be matched by sales, although we have to bear in mind that sales were already at lower levels before lockdown.

“One interesting factor is that sales that are taking place are taking place, generally, at a price level slightly below asking price. This may be a good time to buy.

“The inferences to be drawn, if any, from the second quarter are subject to great caution. The low activity, resulting in reduced numbers of transactions, means it would be unwise to reach any fixed view of the current market. The welcome return to more “normal” activity, shown in the last 4 weeks, needs to continue for the remainder of the year, before we can say we seem to be over the worst.”