Aberdeen bucking house-price trend

Published on Wednesday 28 January 2009 20:55

THE housing market in Aberdeen, Europe's oil capital, is holding its own against the slump affecting other parts of Britain, it was revealed yesterday.

Figures released by the Aberdeen Solicitors Property Centre (ASPC) show that the average price of a home in the final quarter of last year fell by only a fraction, despite the impact of the credit crunch.

The average property price in the Aberdeen housing market area for the fourth quarter of 2008 was 192,570 – only 339 less than the average for the previous quarter when prices plunged by 8 per cent.

John MacRae, the chairman of ASPC, said yesterday he was puzzled but encouraged by the standstill in prices. "It does seem that Aberdeen is either waiting to be hit by the recession or is not going to be hit as badly as other places."

Meanwhile, another study yesterday forecast that Aberdeen is in a stronger position than most other cities in the UK to weather the recession.

A report by independent research group, Centre for Cities, which has analysed 68 UK cities and their prospects of recovery, lists Aberdeen as seventh on an economic prosperity index, one place behind Edinburgh.

It says: "Edinburgh's dependence on financial services will make it vulnerable … Aberdeen's position as the UK hub of the North Sea oil industry should make it more resilient."