Scotland’s prime residential real estate market picked up in the second quarter of 2018, as sales volumes and price growth increased, according to a report Monday from Knight Frank.
Prices for prime property across Scotland increased 1.2% from quarter to quarter, and 1.6% annually. Though seemingly modest, this was the strongest rate of annual growth in Scotland recorded by Knight Frank since the end of 2014 and before the introduction of Scotland’s Land and Buildings Transaction Tax, the report said.
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A supply shortage of prime homes is the main reason prices are growing.
There were 25% fewer homes valued above £750,000 (US$994,083) listed for sale across Scotland in the second quarter compared with the same period in 2017, and 23% fewer homes priced at above £1 million (US$1.32 million) in the same time frame.
Amid the fall in listings, demand for prime properties continues to grow. There was a 29% year-on-year increase in the volume of sales above £750,000 over the 12 months to March 2018, according to the report.
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The demand for top-end property is being felt in Edinburgh, too, where it has underpinned significant price growth in the capital city, with values increasing 3.7% between April and June.
On an annual basis values in Edinburgh were 9.4% higher than the same time in 2017.
But while prices continue to rise, buyers remain. In the year to April, sales volumes for properties valued over £500,000 (US$662,804) rose 17.3%.
"Edinburgh has certainly bucked the wider national trend of price moderation with its recent surge in growth," said Oliver Knight, research associate at Knight Frank. "Coupled with this strong demand, which is coming from both domestic and international buyers, the imbalance between supply and demand will help underpin values as the year progresses."