THE buoyant local economy in Europe's oil capital is helping Aberdeen to buck the housing slump affecting most other parts of Britain, it was confirmed yesterday.
The latest quarterly report released by the Aberdeen Solicitors Property Centre (ASPC) and Aberdeen City Council has revealed that the average cost of buying a house in the Aberdeen housing market area rose by 4 per cent from the first quarter of 2
008.
And the average price of a second-hand home in the area now stands at £210,364. The average property price in Scotland is £149,541 and the UK average stands at £174,514.
An ASPC spokeswoman said: "This figure is almost identical to the average second-hand house price in the Aberdeen housing market area at the end of the second quarter in 2007 (£210,536]. In reality, therefore, since the second quarter of 2007 the average house price in Aberdeen dipped slightly and has recovered to virtually the same level.
"During the second quarter of 2008 the number of properties sold through the ASPC was 1,584. The figure for the second quarter of 2007 was 2,026."
Commenting on the figures, John MacRae, the chairman of ASPC said: "The second-quarter figures show that despite severe external difficulties the local housing market is holding up well. Prices are now appearing to stabilise and any rate of increase is marginal at best."
But he warned: "Despite a strong local economy, the local housing market will not be immune to the difficulties faced throughout the rest of the United Kingdom and we can expect to see a certain degree of rationalisation in the coming months. Despite the difficulties that might lie ahead, the Aberdeen housing market is probably better placed to withstand such difficulties than most other areas."
During the quarter, 2,729 properties were added to the property register, and 1,584 were sold.
The report states: "This is the first time since 2002 that the number of properties on the register has exceeded the number of properties sold."
A breakdown of the sales figures shows a wide variation on the prices from area to area. The highest average sale price of £348,645 was recorded in Lower Deeside where many of Aberdeen's most exclusive commuter communities are sited, with an average of £306,914 recorded in the Banchory, Durris and Drumoak areas.
The lowest average of £150,220 was recorded in the suburb of Bucksburn with city centre prices the second lowest at £186,377.
A report published earlier this month by the Nationwide building society revealed that house prices in Scotland were continuing to rise, due in part to the oil price spike fuelling the Aberdeen and Aberdeenshire market.
The full article contains 462 words and appears in The Scotsman newspaper.
