2016 has, to put it mildly, been a challenging year for property sales in Aberdeen and Aberdeenshire. The well publicised downturn in the local economy, as a direct result of the decrease in the price of oil from mid 2014, has led to numerous job losses and a consequent negative impact on the property market.
Figures from Aberdeen Solicitors’ Property Centre show the volume of sales down by almost a third compared with the year before (up to the end of the third quarter). Average prices are also down by 10% in the city and suburbs over the same period. However, over a 5 year period prices are still up by an average of 2%.
Closing dates are few and far between and most sales are being negotiated at percentages under the Home Report valuation. This should not discourage property sellers as when they come to buy, they should be able to negotiate a similar discount on their purchase.
There are some positive signs, however. The volume of sales in the third quarter of 2016 showed a slight increase over the second quarter. A recent oil and gas survey showed that two thirds of businesses believed that the sector had reached the bottom of the current cycle or will do in the next year. The oil price has also bounced back from under $30 per barrel in January to over $50 per barrel this month. Property purchasers are benefiting from historically low interest rates and new home builders are offering generous incentives.
James & George Collie’s dedicated sales office at 450 Union Street, Aberdeen, located between Rose Street and Chapel Street, in the heart of the city centre, enjoys a prominent position on Aberdeen’s main street and provides ideal exposure for properties on the market for sale. Located directly opposite the new Capitol and Silver Fin office developments, it is ideally placed for advertising properties for sale and to benefit from the inevitable bounce back in the property market.