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Thursday, March 21, 2013

Prime property investment appetite in Scotland fades as sales decline

By Invezz

The prime property sector in Scotland had a slow year in 2012, Property Wire reported on March 12, citing data from the latest market report from property advisory firm Savills Scotland. According to the report, in 2012 there was a decline in prime real estate transactions in the country as a whole, although there were some regions such as Argyll and Bute where the number of prime sales increased compared with the previous year.

Prime properties left unsold


Prime property investment interest in Scotland faded in 2012, with the sales of properties worth over £400,000 declining by five percent compared with 2011, Savills Scotland said in its latest report.  According to the firm’s data, the biggest slumps were seen in Lanarkshire, where the sales declined 33 percent and Ayrshire with a 27 percent decrease.

The firm attributed the decline in prime sales partly to events such as the London Olympics and the Queen’s Diamond Jubilee, which diverted the nation’s attention from the business of buying and selling houses, contributing to the slowdown of the traditionally quiet summer market. But the main problem according to Savills lies in the high number of properties left unsold on the prime housing market. Faisal Choudhry, associate director of residential research at Savills Glasgow, pointed out that this problem is most evident in areas where supply overwhelms demand and where asking prices are too high.

Exceptions to the rule


Despite the overall prime sales slump in Scotland, there were some regions that managed to attract higher prime property investment interest, the company said. Argyll and Bute led the charts, recording a 47 percent increase in prime property sales on an annual basis, followed by Dumfries and Galloway (a 41 percent  increase) and East Lothian (up 38 percent). Prime property prices rose in some parts of Edinburgh too, including Inverleith (29 percent), the New Town (24 percent) and Stockbridge (22 percent). Mr. Choudhry observed that all locations saw an increase share some common characteristics that make them attractive to buyers. Most importantly, these locations have, for the most part, realistically priced prime properties, offering value for money, something that buyers seek in today’s tough economic climate, Choudhry explained.

Overall, the number of prime property sales in 2012 is 2,070, which is comparable with the average sales per year between 2003 and 2012. News, analysis, commentary, opinion and an interactive forum for investors of all kinds. Invezz will allow you to keep up to date with the most recent developments in the investment world, allow you to browse and weigh-up investment opportunities as well as read and interract with the opinions of both experts and your peers.


About the author: Visit the new investors' portal iNVEZZ for more helpful analyses and informative news related to property investment. News, analysis, commentary, opinion and an interactive forum for investors of all kinds. Invezz will allow you to keep up to date with the most recent developments in the investment world, allow you to browse and weigh-up investment opportunities as well as read and interract with the opinions of both experts and your peers.