New-builds go through roof

Published on Thursday 20 March 2008 09:40

THE average price of new-build homes in the Capital has soared by nearly double the rate of the general housing market in the city.

A number of luxury developments in the city centre put on sale last year have contributed to new-build prices rising by 16 per cent.

The general or "second hand" market saw growth of only nine per cent over the same period.

Estate agents say developers are increasingly focusing on the top end of the market, with a number of prestigious developments in the city centre pushing prices beyond the reach of first-time buyers.

Faisal Choudhry, a researcher for estate agent Savills, found the average price per square foot for a new-build property in Edinburgh was 295, meaning the average new-build two-bedroom flat would cost 258,125.

He found the city is the most expensive local authority area in which to buy a new home, and third-highest area for price growth in the past 12 months.

He said: "There have been three major new-build developments coming on to the market in the city centre, at Quartermile, Ravelston Terrace and St Vincent Place, and that has contributed to the rise in asking prices in Edinburgh. These sites don't become available often and because of the location the prices tend to be higher."

But he added that recent developments in areas like the Waterfront have suffered from slower demand when sold on because of an over-supply in the market.

Quartermile, the former site of the Edinburgh Royal Infirmary, has been selling luxury apartments for an average of 450 per square foot. Aisling Dunphy, Quartermile developer Gladedale Capital's sales and marketing director, said: "Buyers are still eager to secure quality homes in a good location and there is little sign of this slowing down."

Miller Homes (East) achieved a 1 million sale for the first time at its Graysmill development in Craiglockhart. Anne Marie Britton, the Edinburgh-based housebuilder's sales director, said: "The appeal of the new-build market is that buyers have more confidence in their investment."

Edinburgh North and Leith MP Mark Lazarowicz said the latest figures are another sign first-time buyers are being priced out of new developments.

He said: "I think we are seeing a clear imbalance in the type of housing provided and it is having a serious social consequences.

"There needs to be a better mix of the types of houses being built."

Flats plan sails into harbour

A MASSIVE new development of 144 flats and 36 townhouses for Edinburgh's Waterfront was unveiled today.

Edinburgh-based housebuilder Applecross is set to create the site on land at the Western Harbour in Leith as part of a 50 million joint venture with Forth Ports.

A planning application for the site is expected to be lodged in the coming months, with developers hoping work could start by the autumn and the first tenants could move in as early as spring 2009.