The Aberdeen housing market has experienced a disappointing downturn, with the average price of detached homes falling by £5,000 in just three months. This latest decline has raised concerns among local property experts and homeowners alike.
According to recent data from Aberdeen Solicitors Property Centre (ASPC), the average price of a detached home in Aberdeen decreased from £325,534 in the second quarter of 2024 to £320,534 in the third quarter.
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This significant drop has been described as “disappointing” by industry professionals, especially given the previous signs of recovery in the market.
John MacRae, chairman of ASPC, commented on the situation:
“At ASPC we are finding levels of activity remaining high. This encourages us to think our local market may be starting a gradual recovery towards pre-Covid levels. However, this recent decline in detached home prices is certainly disappointing and indicates that the market is still facing challenges.”
The decline in house prices is not limited to detached homes. The overall Aberdeen property market has shown signs of weakness, with the average house price now at the same level as it was in May 2007.
This represents a significant drop from the peak prices seen during the oil boom, highlighting the long-term impact of the oil industry downturn on the local housing market.
Deborah Bonner, valuer at Gilson Gray, offered herperspective on the market, commenting:
“The last decade has been tough for Aberdeen, but there are many positives to focus on. House prices are starting to creep up as people have decided to carry on with their life plans, rather than waiting for a silver bullet to fix the economy.”
Despite this optimism, the recent price fall suggests that the recovery may be more fragile than initially thought. Faisal Choudhry, head of residential research in Scotland at Savills, provided historical context:
“10 years ago we reported that property prices in the Aberdeen area were 25% above the ten-year average, while million pound plus sales here reached a record high in the year ending September 2014.”
The contrast between then and now underscores the dramatic shift in the Aberdeen property landscape.
While the recent price fall is concerning, some experts remain cautiously optimistic about the future. Laura Mearns, owner and director of Northwood, stated: “Despite these challenges, Aberdeen’s housing market has shown resilience. The stability of the average house price and continued demand for smaller, affordable properties suggest that the market is adapting to the changing landscape.”
As Aberdeen continues to navigate the aftermath of the oil industry downturn and adapts to new economic realities, the housing market remains a key indicator of the city’s overall economic health. The coming months will be crucial in determining whether this recent price fall is a temporary setback or part of a more prolonged trend.
