The Aberdeen housing market has seen some turbulent times in the past 18 months but is the decline beginning to change?
There is no doubt that there are winners and losers in any changing market, but I think we can all agree that there has never been a better time to buy property in Aberdeen.
Property prices have been steadily falling – a direct result of the oil and gas downturn. This has provided many with an opportunity to invest in properties which in previous years they couldn’t perhaps afford.
When I first joined Blackadders in the Granite City just over two years ago, it came as quite a surprise to me that whatever the property, the expectation was that it would achieve over the Home Report value. This has never really been seen in any other part of Scotland that I have worked in and at some point had to change.
I believe – as many estate agents and solicitors do – that there is a slight increase in confidence about buying again in Aberdeen and there are a number of factors behind this. Firstly, I think that purchasers now have a good understanding of what they will have to pay. Another reason is the fear of oil & gas job losses is starting to ease. For many of those who work in the industry, the feeling is that the majority of these job losses have already happened. If you were thinking of moving last year and still find yourself in employment, there is every chance you will now feel more confident about making that decision.
I also believe that vendors are more accepting that they will achieve around the Home Report value but this has taken a while which is completely understandable, considering the level of offer previously they would have expected to achieve.
As I mentioned, there are winners and losers in the property market. However, there is a new middle market emerging that is starting to help the market pick up in Aberdeen. This is predominantly made up of those who previously wouldn’t have been able to move up the property ladder as they would have been most likely have been outbid by oil money. One client recently explained to me, “It is now my time.”
There is also evidence that suggests that the decline of oil and gas prices is now in reverse and although the high property prices achieved during the good times are almost certainly a thing of the past, the recent stability of oil prices bodes well for future investment in the industry.
Aberdeen is well placed to profit from such investment and the benefits that it would bring to the local housing market.
If you are thinking of putting your property on the market, we are currently running an offer where we will allow you to list your property with no upfront costs. For more information, please contact our team.
Branch Manager – Aberdeen