31/01/2007
Graham + Sibbald: Busy start to 2007 for Tayside Property Market
The new year appears to have taken off in the Dundee Residential Property Market.Graham Tonner, Partner at Graham + Sibbald states: “The traditional slow-down of the property market over the winter months appears to be a thing of the past as the residential property market, after a short festive break, seems to be forging ahead. Local Estate Agents confirm that there is an early upturn of activity, suggesting that as more properties are introduced to the market, prices are expected to follow recent trends and continue to rise”.
Since 2003, Tayside has seen property prices rise at an unprecedented rate and the recent increase in interest rate appears to have had no effect on the local market, with all areas of the market performing well and in many cases attracting sales well in excess of valuation. With major house builders showing confidence in Dundee and its surrounding area, demand for development land has increased dramatically and both the city centre of Dundee and the outskirts of the city have changed beyond recognition, with new estates continuing to be built throughout. From the west, high value developments at Liff and Auchterhouse are in the process of construction. Further expansion is in the pipeline at the western gateway and to the north, where the estates of Craigowl and Emmock Woods continue to grow. But perhaps the biggest changes have occurred to the east side of the city where Broughty Ferry, Monifieth and Carnoustie have benefited from the new Dundee to Arbroath dual carriageway, which has allowed more land to be utilised for residential development. The Riverside Development at City Quay is particularly buoyant and investment flats at the Hub, which are specifically designed for Student accommodation, are sold out and nearing completion.
But what of the second hand properties? Graham Tonner continues: “All sectors of this market remain buoyant, especially the traditional tenement flat. In the past, selling a property of this type was a difficult task for any Estate Agent, whereas now there is a high demand to purchase this type of property from first time buyers and investors alike. Investors from all over the UK are of the opinion that Dundee’s improving image and reasonably priced properties provide an attractive proposition for buy-to-let properties, which have become very popular in the last few years as Pensions disappoint and residential property continues to show excellent capital growth and returns”.
Early signs indicate a busy 2007 but how long will the growth continue? This depends on factors such as the local and national economy and interest rates. The city however has reinvented itself over the last ten years and with the ongoing improvement and redevelopment of the city centre and waterfront, the future looks bright for the local residential property market.
