£1million home sales are the best in a decade

More homes in Scotland were been sold for over £1million in 2018 than in the past decade.

Rettie & Co reported a 25% increase in activity year on year, as they sold one in five of all £1m+ properties sold in Scotland last year.

Their report says Edinburgh remains the capital of the £1m+ market in Scotland, with over 60% of sales in the city and over 100 sales in just five postcode districts.

New build homes make up over 18% of all £1m+ sales. Over half of all £1m+ new build sales in 2018 occurred in Edinburgh, with 30% of these sales handled by the Rettie & Co new homes team.

The distribution of £1m+ sales across Scotland show some very different patterns in geographical locations as well as in the types of homes being bought.

The East Coast accounts for over 70% of £1m+ sales, with almost two-thirds occurring in Edinburgh and the Lothians. Unlike most other areas of Scotland, this includes apartment and city centre sales.

Aberdeen, after experiencing a collapse in activity, has seen an upturn in £1m+ sales in 2018. While still 40% down on 2015 levels, this is a positive sign for the market, which is being driven by new build detached family homes in and around the city.

In Glasgow, the popularity of the commuter family suburbs of Bearsden and Milngavie to the north, and Bothwell, Thorntonhall and Newton Mearns to the south is clear to see, accounting for 70% of £1m+ sales in Greater Glasgow.

A chart showing where Rettie’s £1million+ homes have been sold

Associate director Andrew Meehan said: ‘With Brexit dominating the headlines, and being blamed for weakening housing market sentiment nationally, the Scottish £1m+ market was contrarian in 2018, reporting a 25% increase in activity and recording the highest level of activity in a decade.

‘With over 130 £1m+ sales in Edinburgh, the West Coast seeing such activity increase by over 50%, and even increases in this market in
Aberdeen, the statistics may seem surprisingly strong.

‘However, with comparatively positive economic indicators and market fundamentals, combined with the value in the Scottish market, it is understandable why wealth is finding a home in Scotland.

‘The £1m+ market always attracts much interest as an indicator for confidence in the wider housing market. With Brexit approaching, there has been much speculation regarding how this event will impact more discretionary elements of the market.

‘Figures from 2018 show an upturn in capital being committed in to the Scottish prime market, contrary to much of the market press coverage. Overall, the number of £1m+ sales increased by over a quarter year-on-year.

‘The largest increase came in the Edinburgh market, which saw an additional 22 £1m+ sales in 2018. However, the West of Scotland saw the largest increase of such sales, rising by 50%.

‘At the start of 2019, appetite has remained strong at the top of the market as Scotland, and especially Edinburgh, offers comparatively strong value and robust market characteristics.’

The report noted that across Scotland, 18% of £1m+ sales were new build homes, around the same level as 2017. The new build market has the advantage of being able to deliver the latest in buyer requirements.