Working in the property industry, one of the most frequent questions we get asked is where the “hotspots” in the market are. Whether it’s homemovers, investors or local journalists, everyone wants to know where property sales are strongest.
So far this year the Edinburgh market as a whole has been buoyant. Most properties are going to closing dates and achieving offers that are at least equal to the Home Report valuation and, at Warners, properties we sell are generally spending less than three weeks on the market.
There are still parts of the city though that are outstripping the rest of the market and by analysing ESPC’s unrivalled sales data, we’ve identified three areas of the Capital where sellers are enjoying most success.
Lying just to the west of the City Centre, Haymarket has proven a hotbed of activity so far in 2016. Through the first seven months of the year, the average price of a Haymarket property has risen by just under 8%, from £189,232 last year to £204,179. The number of homes changing hands has also risen, up by more than 20% annually.
Given the high level of demand in the area it’s no surprise that sellers are securing favourable offers. So far in 2016, properties in Haymarket have achieved an average of 8.7% over and above the Home Report valuation. That equates to an average premium of just over £16,000 being paid to secure properties in the area.
The reasons why Haymarket is in such high demand are easy to understand. The area is literally just a few hundred yards from the centre of Edinburgh and, with Haymarket station, the tram line and several major bus routes all on the doorstep, it offers fantastic transport links for those who need to commute. The recent renovation of Haymarket station will have further heightened buyer interest so it’s no surprise to see Haymarket performing so well.
Marchmont has long been considered one of the most fashionable areas of Edinburgh and the market here is once again performing well in 2016. Properties for sale in Marchmont have typically been snapped up quickly this year, with homes in the area spending an average of just 16 days on the market.
At Warners we’re finding that usually when a property comes onto the market in Marchmont it will quickly attract multiple notes of interest, meaning that in most cases sellers are best served by setting a closing date. That means that buyers are motivated to submit their best offer in order to secure the property. On average homes in the area are achieving a premium of 7.5% over the Home Report valuation, but it’s certainly not unusual to see selling prices of 15 or 20% above valuation being achieved.
Marchmont is located close to campuses for both Edinburgh and Napier universities meaning that we often see interest from buy-to-let investors, as well as parents looking to purchase a property for children moving into further education. Due to the fantastic array of Victorian tenements in the area, as well as its proximity to the Meadows and easy access to the City Centre, Marchmont is also hugely popular with buyers looking for a place to settle down in.
Abbeyhill has been a real hotspot in Edinburgh in 2016. Demand has largely been driven by first time buyers looking for an affordable way onto the property ladder in an area close to the City Centre, as well as from buy-to-let investors attracted by favourable rental yields and potential for capital growth.
Demand was particularly high during the first quarter of the year, with investors looking to complete their purchase before the changes to property tax which took effect in April. Since then, however, demand has remained strong. Through the end of July, sales in Abbeyhill are 40% higher than at this stage last year. Homes in Abbeyhill are being snapped up quickly with properties spending an average of just 15 days on the market.
As you would expect, selling prices in Abbeyhill tend to exceed Home Report valuation by some way. During the first seven months of the year buyers have had to pay an average of 7.3% over the valuation price to secure their property.
Despite the high demand Abbeyhill remains comparatively affordable, especially given its proximity to the City Centre. One bedroom flats in the area can often be found for around £120,00. At that level, first time buyers will not incur Land & Buildings Transaction Tax which makes it especially attractive for those looking to find a way onto the property ladder.
Over the last two years buyer activity has been consistently strong across Edinburgh and we expect that to remain the case as we move into the final third of the year. Demand has outstripped supply in the market for some time now and that is likely to remain the case meaning that sellers will continue to find conditions favourable in the months ahead.
If you’re thinking of buying or selling your home, please don’t hesitate to contact us on 0131 667 0232, or by emailing us at email@example.com and one of our friendly team will be delighted to help you.