The number of Scottish million pound property sales in 2010 increased at the fastest rate for three years, according to research by Bank of Scotland.
Despite this significant increase, million pound property sales remain 40 per cent below the levels they reached before the onset of the financial crisis in 2007 (246), following a sizable 59 per cent decline in sales between 2007 and 2009. These figures underline the fact that the upper end of the market was significantly affected by the financial crisis.
Million pound property sales outperform the rest of the market
Sales of million pound properties rose significantly more than total housing transactions in 2010. The 45 per cent increase in million pound home sales in 2010 was over six times the overall increase in sales (seven per cent). In contrast, there was just a five per cent increase in the number of sales worth less than £250,000. Despite this outperformance, million pound sales continue to represent a very small proportion of the total market, accounting for just 0.2 per cent of all sales in Scotland in 2010.
Scotland sees fifth largest rise in million pound sales
In 2010, Scotland recorded the fifth biggest percentage rise in million pound sales in Great Britain. The West Midlands recorded the biggest percentage increase (109 per cent), followed by the East of England (62 per cent). Wales (-25 per cent) and the North East (-19 per cent) were the only regions to see a fall in million pound sales, although the total number of million pound sales in both areas is very low. Overall, 83 per cent of all million pound sales in Great Britain in 2010 were in London and the South East.
Nearly half of all Scottish million pound property sales were in Edinburgh
70 properties were sold for at least one million pounds in the Scottish capital in 2010. This was significantly higher than anywhere else in Scotland and the highest in Britain outside the southern England. Edinburgh accounted for 47 per cent of all million pound sales in 2010. Aberdeen City, at 10 properties, recorded the second highest number of sales. Three quarters of all local authority districts in Scotland saw at least one sale of over a million pounds in 2010.
Suren Thiru, Bank of Scotland housing economist, said: “The number of properties sold for over £1 million has risen substantially over the past year, reflecting the strength of the very top end of the housing market. Edinburgh still accounts for the lion’s share of all £1 million sales with the capital accounting for almost half of all such sales. Activity in the upper end of the market in Scotland continues to benefit from strong demand from wealthy buyers from outside Scotland and limited supply. In contrast, the level of activity across the wider housing market remains subdued.”
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