January 9th 2004
The housing market in Tayside is likely to continue to grow for at least another year, according to property specialists Thorntons WS.
Figures produced by the Tayside solicitors show that average house prices in Dundee, Perth and Angus have leapt by over 30% during 2003 and while the market may stabilise in 2004, it's unlikely values will fall.
Thorntons say the chief trend of 2003 - demand for property in Tayside outstripping available supply - will continue into 2004 and beyond.
The firm is predicting continued growth in prices across all housing sectors in Tayside and that high pressure demand for top of the market housing will help boost prices in less sought-after areas.
The market is so overheated that forward buying of new build properties - sales concluded months before homes have been built - is now commonplace.
"It has been one of, if not the best year on record for property sales in Tayside," said George Solley, Director of Property Sales at Thorntons Property Services.
"National surveys have confirmed our own view that Tayside, and the City of Discovery in particular, has become one of the UK's main property hotspots.
"There is huge interest being shown in Dundee from investors and developers alike - both from this country and abroad.
"Investors appear particularly interested in the income return from rental rather than the basic value of property. Even private buyers are offering based on their monthly mortgage costs rather than the value of properties concerned.
"Where buyers and investors do not have to rely entirely on mortgage funding, they will pay well, well ahead of valuation to secure property."
That's good news for sellers - but the continued rise in prices could be bad news for first time buyers in Tayside.
"Sales of smaller properties such as flats in the off-centre locations have also picked up noticeably, " continued Mr Solley.
"This largely because first or second time buyers have no option but to turn their attention to these areas as the competition for city centre and west end properties is so fierce.
"Ex-local authority housing is also at a premium - price rises here have been particularly dramatic as these properties are filling a gap in the market created by the extremely high prices now sought for traditional 2 or 3 bedroomed semis in private developments.
"I believe demand will continue to exceed supply in 2004. The increasing interest in Tayside property from external buyers, developers and investors will maintain prices at a high level.
"It is possible that the pace of price growth may slacken and the market will stabilise during the year ahead - but there is nothing to indicate prices will fall in any sector in 2004."
As the market began to grow in 2001 Thorntons logged property sales of approximately £50 million for the year. In 2002 the firm sold over £70 million worth of property.
When figures for 2003 are collated, the firm expects the total annual sales figure could have risen as high as £??? million.
Issued by Beattie Communications on behalf of Thorntons Solicitors.
Contact: Kimberley Hamilton, Tel 01698 787878