Ewan Blair reports on the market during the last quarter.
Click on a branch link below to access the quarterly market review for your area.
Quarter four has seen a highly successful finish to another interesting year. Throughout 2017, supply to market has remained consistently low in relation to high levels of demand resulting in a spectacular trading platform, predominantly stacked in favour of the vendor. Willing buyers armed with attractive finance packages combined with a heady mix of well-presented homes has led to numerous successful outcomes.
The mechanics of this market have, however, proven to be far more predictable and stable compared to ten years ago when the market was fuelled by excessive lending in excess of 100% LTV. Buyers appear to be savvier too with the vast majority choosing to borrow no more than 85% LTV and apart from first time buyers, most are entering the process with higher than expected levels of equity (post sale).
Despite continued Brexit discussions and a marginal increase in the Bank of England base rate the market has gone from strength to strength. The trading patterns of quarter four have mirrored those of quarters two and three. It is expected that this pattern will continue into 2018.
Larger town flats are selling exceptionally well and are now seeing prices circa 10% or more than the previous high in 2007. Decent converted properties are selling well particularly the larger style in the price range of £400,000-£500,000. Smaller quirky conversions are proving tricky as buyers opt to purchase a preferred standard town flat by default. Larger semi- detached homes (£650,000-£700,000) are in huge demand, however, supply to market this year has been very low. Larger detached homes are thin on the ground; however, well presented properties are trading successfully with most transactions being handled off-market.
This suburb has seen a phenomenal transformation within the last 24 months. Demand for Strathbungo is completely unprecedented and many purchasers are seeing it as the Southside’s answer to Finnieston. Decent two bedroom flats are selling for £180,000 or more and conversions in original Strathbungo are trading at least 10% ahead of the high water mark of 2007. Townhouse properties have risen to a different level with a number of sales recorded at £500,000-£600,000 or more.
Shawlands & Langside
The “bread and butter” market with standard layout one and two bedroom flats is performing very well. The premium addresses of Edgemont, Underwood, Bellwood and Camphill are absolutely motoring with closing date sales and record prices being achieved on a regular basis.
A suburb which has gained strength in the last 18-24 months (must be the soup at The Dandelion Café). Sales prices for conversions and semi-detached villas are higher than ever before with a proposed new development at the Calderwood Lodge site programmed for 2018.
Moving forward, we expect quarter one of 2018 to follow a similar route to 2017, marginal interest rate increases appear to have little or no effect on the market and conversely, can actually increase buyer pressure. Brexit discussions continue with little or no fall out expected for at least another 12 months. Anyone considering a move should contact our Shawlands office where we would be delighted to discuss your personal situation in confidence.
Corum Shawlands office
247 Kilmarnock Road
Tel: 0141 636 7588