Prior to the downturn many Scottish sales at the top end of the market were generated by local entrepreneurs or financiers. This set of buyers has fallen away in recent years, and the Scottish market is relying increasingly from those from further afield.
In terms of buyers of million pound sales this year so far, 25% have come from outside Scotland, including London and overseas. This is an increase of 9% on last year’s figure.
Record levels of stock
According to the Savills index, prime property values suffered a fall of -1% between December 2011 and June 2012. We expect prices to fall by a further 3% during the second half of this year. By the end of this year we anticipate prices will have fallen by 8% since December 2010.
The main reason behind this fall is the record level of prime property, above £400,000, currently available to buy in Scotland. Excluding new homes, there are around 1,500 homes for sale, 15% more than the same time last year. As a result of high stock levels, and the imbalance between supply and demand, it is likely that prices across Scotland will continue to fall throughout the remainder of 2012. Buyers are becoming increasingly discerning and vendors and agents are more realistic in their price expectations.
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