HOUSE prices in the Aberdeen area have soared by more than five per cent over the past three months, it was revealed today.
Average sales in Europe’s buoyant oil capital and its suburbs have risen by 5.4 per cent over the past quarter while prices in Scotland have fallen by 0.1 per cent and risen by 3.7 per cent in the UK.
But John MacRae, chairman of the board of directors of the Aberdeen Solicitors Property Centre (ASPC), warned that, if the figures are maintained over several quarters, there is a danger of the local hosing market overheating.
According to the ASPC’s latest quarterly report, the volume of sales in the area also rose by 22.7 per cent over the previous quarter with the sales of flats alone increasing by a staggering 53.8 per cent over the period.
The average price of flats in the area has risen from £145,640 to £152,540, semi detached houses from £193,623 to £204,021 and detached homes from £313,297 to £326,734.
The largest average sales increase outside the city and suburbs is in Stonehaven where prices have risen by 5.6 per cent while average prices have increased by 3.3 per cent in Ellon and by 2.6 per cent in Inverurie.
Mr MacRae said: “The figures for the second quarter are something of a surprise. Anecdotal evidence suggested that the market was continuing to recover levels of volume not seen since before the banking crisis but the second quarter figures have surprised both in price and volume. A quarterly increase of 5.4 per cent in price in the city and suburbs is substantial and contrasts sharply with figures in Scotland and the United Kingdom.
“These figures demonstrate that the market in Aberdeen, fuelled by an easing of funding from mortgage lenders, is beginning to show signs of activity of a kind not seen for several years. The increase in funding from mortgage lenders is clearly one factor affecting the market.”
But he warned: “While the increase in activity is welcome, there is some concern that these figures, if maintained over several quarters, could lead to overheating in the market.”